Tag Archives: HUBZone compliance

Thank You, HUBZones!

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Last week, I had the honor of returning to Washington, DC and giving a presentation at the National HUBZone Conference on best practices for remaining HUBZone compliant.  The presentation addressed critical ongoing HUBZone compliance issues, including the principal office rule, 35% employee residency rule, and other HUBZone eligibility rules.

Many thanks to Mark Crowley and the HUBZone Council for inviting me to be part of the conference.  And a big “thank you” to my engaged audience of HUBZone companies, which asked many great questions and probably could have kept going all morning if there had been time.  Finally, thanks to my sister Karen, for allowing me to use her apartment in Van Ness as my personal HUBZone Conference hotel and introducing me to Comet Ping Pong while I was in town.

If your company is HUBZone certified, but you weren’t able to make it to this year’s National HUBZone Conference, never fear.  My presentation slides are now up on the Past Presentations page.  Enjoy!

Explaining HUBZone Eligibility And The 35% Residency Requirement

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In order to qualify as a HUBZone business, 35% of a company’s employees must reside in a HUBZone (though not necessarily the same HUBZone where the business has its principal office).  But what happens if a business slips below the 35% requirement?  After all, employees come and go all the time.

Here’s how it works.

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Agency Awards HUBZone Set-Aside to Federal Prison Industries

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When is a HUBZone set-aside not really a HUBZone set-aside?  According to one GAO bid protest decision, when Federal Prison Industries (also known as UNICOR) submits an offer.

In Tennier Industries, Inc., B-403946.2 (June 29, 2012), the Defense Logistics Agency set-aside a procurement for HUBZone contractors, but awarded the contract to Federal Prison Industries rather than a HUBZone company.  One might think that the GAO would sustain a bid protest.  Instead, the GAO held that the award to FPI was A-OK.

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HUBZone Small Businesses: Don’t Forget to Inform the SBA of “Material Changes”

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After GAO reports described the HUBZone program as vulnerable to fraud and abuse, the SBA has cracked down in recent years—making site visits, decertifying HUBZone small businesses, even threatening some with suspension and debarment for violating the regulations.

The SBA should be commended, of course, for taking steps to ensure that HUBZone participants remain on the up-and-up, but the stricter enforcement can spell trouble for HUBZone firms that mean well, but don’t fully understand their ongoing compliance obligations under the HUBZone regulations.  Case in point: the SBA has apparently proposed to decertify some HUBZone firms for failing to keep the SBA informed of “material changes” that may affect their program eligibility.

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Event: Best Practices for Remaining HUBZone Compliant

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HUBZone small businesses, circle your calendars.  The 2012 National HUBZone Conference is coming September 5-7 in Washington, DC.  The conference will feature matchmaking sessions, exhibits, and educational sessions–including one you won’t want to miss on “Best Practices for Remaining HUBZone Compliant,” presented by yours truly.

If you’re a HUBZone company, you know how difficult it can be to maintain ongoing compliance.   It’s easy to inadvertently slip below the 35% threshold or even fall out of compliance with the principal office requirement.  My session will explain the nuances of the rules, including common compliance mistakes HUBZone firms make.  And, as the title suggests, I will provide “Best Practice” tips on remaining on the straight and narrow.

I’m tentatively scheduled to speak on the morning of Thursday, September 6.  If you can’t make the full session, I will be offering an abbreviated version during the afternoon of Wednesday, September 5.

Many thanks to Mark Crowley and the HUBZone Council for inviting me to speak at what promises to be a wonderful conference.  I hope to see you there!