(a) Before issuing a solicitation for general construction or construction by special trade contractors, the contracting officer shall determine if at least two HUBZone small business concerns can spend at least 50 percent of the cost of contract performance to be incurred for personnel on their own employees or subcontract employees of other HUBZone small business concerns.
(b) The clause at 52.219-3, Notice of Hubzone Set-Aside or Sole Source Award, or 52.219-4, Notice of Price Evaluation Preference for HUBZone Small Business Concerns, shall be used, as applicable, with its Alternate I to waive the 50 percent requirement (see 19.1309) if at least two HUBZone small business concerns cannot meet the conditions of paragraph (a); but, the HUBZone prime contractor can still meet the following--
(1) For general construction, at least 15 percent of the cost of the contract performance to be incurred for personnel using the concern's employees; or
(2) For construction by special trade contractors, at least 25 percent of the cost of contract performance to be incurred for personnel using the concern's employees.
(c) See 13 CFR 125.6 for definitions of terms used in paragraph (a) of this section. [75 FR 77731, Dec. 13, 2010, as amended at 76 FR 68035, Nov. 2, 2011]