(a) The Federal Acquisition Regulatory Council (FAR Council) has the responsibility of adjusting each acquisition-related dollar threshold on October 1 of each year that is evenly divisible by five. Acquisition-related dollar thresholds are defined as dollar thresholds that are specified in law as a factor in defining the scope of the applicability of a policy, procedure, requirement, or restriction provided in that law to the procurement of property or services by an executive agency as determined by the FAR Council. 41 U.S.C. 431a(c). Part 126, Subpart F, Contract Assistance, contains acquisition-related dollar thresholds subject to inflationary adjustments. The FAR Council shall publish a notice of the adjusted dollar thresholds in the Federal Register. The adjusted dollar thresholds shall take effect on the date of publication.
(b) In order to submit an offer on a specific HUBZone contract, the qualified HUBZone SBC, together with its affiliates, must be small under the size standard corresponding to the NAICS code assigned to the contract.
(c) A firm must be a qualified HUBZone SBC both at the time of its initial offer and at the time of award in order to be eligible for a HUBZone contract.
(d) At the time a qualified HUBZone SBC submits its initial offer, and where applicable its final offer, on a specific HUBZone contract, it must certify to the CO that:
(1) It is a qualified HUBZone SBC that appears on SBA's List;
(2) There has been no material change in its circumstances since the date of certification shown on the List that could affect its HUBZone eligibility;
(3) It is small under the NAICS code assigned to the procurement; and
(4) If the qualified HUBZone SBC was certified pursuant to Sec. 126.200(b), it must represent that it will ``attempt to maintain'' (See Sec. 126.103) the required percentage of employees who are HUBZone residents during the performance of a HUBZone contract. If the qualified HUBZone SBC was certified pursuant to Sec. 126.200(a), then it must represent that at least 35% of its employees engaged in performing the HUBZone contract reside within any Indian reservation governed by one or more of its Indian Tribal Government owners or reside within any HUBZone adjoining any such Indian reservation.
(e) If submitting an offer as a joint venture, each qualified HUBZone SBC must make the certifications in paragraph (c) of this section separately under its own name.
(f) A qualified HUBZone SBC may submit an offer on a HUBZone contract for supplies as a nonmanufacturer if it meets the requirements of the nonmanufacturer rule set forth at Sec. 121.406(b)(1) of this chapter, and if the small manufacturer providing the end item for the contact is also a qualified HUBZone SBC.
(1) There are no waivers to the nonmanufacturer rule for HUBZone contracts.
(i) SBA will not issue contract-specific waivers as it does for small business set-aside and 8(a) contracts under Sec. 121.406(b)(3)(i) of this chapter.
(ii) Class waivers issued under Sec. 121.406(b)(3)(ii) of this chapter do not apply to HUBZone contracts.
(2) For HUBZone contracts at or below $25,000 in total value, a qualified HUBZone SBC may supply the end item of any manufacturer, including a large business, so long as the product acquired is manufactured or produced in the United States.
(g) Multiple Award Contracts--(1) Total Set-Aside Contracts. The qualified HUBZone SBC must comply with the applicable limitations on subcontracting provisions (see Sec. 126.700) and the nonmanufacturer rule (see Sec. 126.601), if applicable, in the performance of a contract totally set-aside for HUBZone SBCs. However, the contracting officer, in his or her discretion, may require the concern to perform the applicable amount of work or comply with the nonmanufacturer rule for each order awarded under the contract.
(1) Total Set-Aside Contracts. The qualified HUBZone SBC must comply with the applicable limitations on subcontracting provisions (see Sec. 126.700) and the nonmanufacturer rule (see Sec. 126.601), if applicable, in the performance of a contract totally set-aside for HUBZone SBCs. However, the contracting officer, in his or her discretion, may require the concern to perform the applicable amount of work or comply with the nonmanufacturer rule for each order awarded under the contract.
(2) Partial Set-Aside Contracts. For orders awarded under a partial set-aside contract, the qualified HUBZone SBC must comply with the applicable limitations on subcontracting provisions (see Sec. 126.700) and the nonmanufacturer rule (see Sec. 126.601), if applicable, during each performance period of the contract--e.g., during the base term and then during each subsequent option thereafter. For orders awarded under the non-set-aside portion, the qualified HUBZone SBC need not comply with any limitations on subcontracting or nonmanufacturer rule requirements. However, the contracting officer, in his or her discretion, may require the concern to perform the applicable amount of work or comply with the nonmanufacturer rule for each order awarded under the contract.
(3) Orders. The qualified HUBZone SBC must comply with the applicable limitations on subcontracting provisions (see Sec. 126.700) and the nonmanufacturer rule (see Sec. 126.601), if applicable, in the performance of each individual order that has been set-aside for HUBZone SBCs.
(4) Reserves. The qualified HUBZone SBC must comply with the applicable limitations on subcontracting provisions (see Sec. 126.700) and the nonmanufacturer rule (see Sec. 126.601), if applicable, in the performance of an order that is set aside for HUBZone SBCs. However, the qualified HUBZone SBC will not have to comply with the limitations on subcontracting provisions and the nonmanufacturer rule for any order issued against the Multiple Award Contract if the order is competed amongst qualified HUBZone SBCs and one or more other-than-small business concerns.
(h) Recertification of Status for an Award. (1) A concern that is a qualified HUBZone SBC at the time of initial offer and contract award, including a Multiple Award Contract, is considered a HUBZone SBC throughout the life of that contract. This means that if a HUBZone SBC is certified at the time of initial offer and contract award for a Multiple Award Contract, then it will be considered a HUBZone SBC for each order issued against the contract, unless a contracting officer requests a new HUBZone SBC certification in connection with a specific order. Where a concern is later decertified, the procuring agency may exercise options and still count the award as an award to a HUBZone SBC. However, the following exceptions apply:
(1) A concern that is a qualified HUBZone SBC at the time of initial offer and contract award, including a Multiple Award Contract, is considered a HUBZone SBC throughout the life of that contract. This means that if a HUBZone SBC is certified at the time of initial offer and contract award for a Multiple Award Contract, then it will be considered a HUBZone SBC for each order issued against the contract, unless a contracting officer requests a new HUBZone SBC certification in connection with a specific order. Where a concern is later decertified, the procuring agency may exercise options and still count the award as an award to a HUBZone SBC. However, the following exceptions apply:
(i) Where a HUBZone contract (or a contract awarded through full and open competition based on the HUBZone price evaluation preference) is novated to another business concern, the concern that will continue performance on the contract must certify its status as a HUBZone SBC to the procuring agency, or inform the procuring agency that it does not qualify as a HUBZone SBC, within 30 days of the novation approval. If the concern cannot certify that it qualifies as a HUBZone SBC, the agency can no longer count the options or orders issued pursuant to the contract, from that point forward, towards its HUBZone goals.
(ii) Where a concern that is performing a HUBZone contract acquires, is acquired by, or merges with another concern and contract novation is not required, the concern must, within 30 days of the transaction becoming final, recertify its HUBZone SBC status to the procuring agency, or inform the procuring agency that it has been decertified or no longer qualifies as a HUBZone SBC. If the contractor is unable to recertify its status as a HUBZone SBC, the agency can no longer count the options or orders issued pursuant to the contract, from that point forward, towards its HUBZone goals. The agency must immediately revise all applicable Federal contract databases to reflect the new status.
(iii) Where there has been a HUBZone status protest on the solicitation or contract, see Sec. 126.803(d) for the effect of the status determination on the contract award.
(2) For the purposes of contracts (including Multiple Award Contracts) with durations of more than five years (including options), a contracting officer must request that a business concern recertify its HUBZone SBC status no more than 120 days prior to the end of the fifth year of the contract, and no more than 120 days prior to exercising any option.
(3) A business concern that did not certify itself as a HUBZone SBC, either initially or prior to an option being exercised, may recertify itself as a HUBZone SBC for a subsequent option period if it meets the eligibility requirements at that time.
(4) Recertification does not change the terms and conditions of the contract. The limitations on subcontracting, nonmanufacturer and subcontracting plan requirements in effect at the time of contract award remain in effect throughout the life of the contract.
(5) Where the contracting officer explicitly requires concerns to recertify their status in response to a solicitation for an order, SBA will determine eligibility as of the date the concern submits its self-representation as part of its response to the solicitation for the order and at the time of award.
(6) A concern's status may be determined at the time of submission of its initial response to a solicitation for and award of an Agreement and each order issued pursuant to the Agreement. [69 FR 29424, May 24, 2004, as amended at 74 FR 46887, Sept. 14, 2009; 78 FR 61144, Oct. 2, 2013]