§ 657a. — HUBZone program.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC657a]
TITLE 15--COMMERCE AND TRADE
CHAPTER 14A--AID TO SMALL BUSINESS
Sec. 657a. HUBZone program
(a) In general
There is established within the Administration a program to be
carried out by the Administrator to provide for Federal contracting
assistance to qualified HUBZone small business concerns in accordance
with this section.
(b) Eligible contracts
(1) Definitions
In this subsection--
(A) the term ``contracting officer'' has the meaning given
that term in section 423(f)(5) of title 41; and
(B) the term ``full and open competition'' has the meaning
given that term in section 403 of title 41.
(2) Authority of contracting officer
Notwithstanding any other provision of law--
(A) a contracting officer may award sole source contracts
under this section to any qualified HUBZone small business
concern, if--
(i) the qualified HUBZone small business concern is
determined to be a responsible contractor with respect to
performance of such contract opportunity, and the
contracting officer does not have a reasonable expectation
that 2 or more qualified HUBZone small business concerns
will submit offers for the contracting opportunity;
(ii) the anticipated award price of the contract
(including options) will not exceed--
(I) $5,000,000, in the case of a contract
opportunity assigned a standard industrial
classification code for manufacturing; or
(II) $3,000,000, in the case of all other contract
opportunities; and
(iii) in the estimation of the contracting officer, the
contract award can be made at a fair and reasonable price;
(B) a contract opportunity shall be awarded pursuant to this
section on the basis of competition restricted to qualified
HUBZone small business concerns if the contracting officer has a
reasonable expectation that not less than 2 qualified HUBZone
small business concerns will submit offers and that the award
can be made at a fair market price; and
(C) not later than 5 days from the date the Administration
is notified of a procurement officer's decision not to award a
contract opportunity under this section to a qualified HUBZone
small business concern, the Administrator may notify the
contracting officer of the intent to appeal the contracting
officer's decision, and within 15 days of such date the
Administrator may file a written request for reconsideration of
the contracting officer's decision with the Secretary of the
department or agency head.
(3) Price evaluation preference in full and open
competitions
(A) In general
Subject to subparagraph (B), in any case in which a contract
is to be awarded on the basis of full and open competition, the
price offered by a qualified HUBZone small business concern
shall be deemed as being lower than the price offered by another
offeror (other than another small business concern), if the
price offered by the qualified HUBZone small business concern is
not more than 10 percent higher than the price offered by the
otherwise lowest, responsive, and responsible offeror.
(B) Procurement of commodities
For purchases by the Secretary of Agriculture of
agricultural commodities, the price evaluation preference shall
be--
(i) 10 percent, for the portion of a contract to be
awarded that is not greater than 25 percent of the total
volume being procured for each commodity in a single
invitation;
(ii) 5 percent, for the portion of a contract to be
awarded that is greater than 25 percent, but not greater
than 40 percent, of the total volume being procured for each
commodity in a single invitation; and
(iii) zero, for the portion of a contract to be awarded
that is greater than 40 percent of the total volume being
procured for each commodity in a single invitation.
(C) Treatment of preference
A contract awarded to a HUBZone small business concern under
a preference described in subparagraph (B) shall not be counted
toward the fulfillment of any requirement partially set aside
for competition restricted to small business concerns.
(4) Relationship to other contracting preferences
A procurement may not be made from a source on the basis of a
preference provided in paragraph (2) or (3), if the procurement
would otherwise be made from a different source under section 4124
or 4125 of title 18 or the Javits-Wagner-O'Day Act (41 U.S.C. 46 et
seq.).
(c) Enforcement; penalties
(1) Verification of eligibility
In carrying out this section, the Administrator shall establish
procedures relating to--
(A) the filing, investigation, and disposition by the
Administration of any challenge to the eligibility of a small
business concern to receive assistance under this section
(including a challenge, filed by an interested party, relating
to the veracity of a certification made or information provided
to the Administration by a small business concern under section
632(p)(5) of this title); and
(B) verification by the Administrator of the accuracy of any
certification made or information provided to the Administration
by a small business concern under section 632(p)(5) of this
title.
(2) Examinations
The procedures established under paragraph (1) may provide for
program examinations (including random program examinations) by the
Administrator of any small business concern making a certification
or providing information to the Administrator under section
632(p)(5) of this title.
(3) Provision of data
Upon the request of the Administrator, the Secretary of Labor,
the Secretary of Housing and Urban Development, and the Secretary of
the Interior (or the Assistant Secretary for Indian Affairs), shall
promptly provide to the Administrator such information as the
Administrator determines to be necessary to carry out this
subsection.
(4) Penalties
In addition to the penalties described in section 645(d) of this
title, any small business concern that is determined by the
Administrator to have misrepresented the status of that concern as a
``HUBZone small business concern'' for purposes of this section,
shall be subject to--
(A) section 1001 of title 18; and
(B) sections 3729 through 3733 of title 31.
(d) Authorization of appropriations
There is authorized to be appropriated to carry out the program
established by this section $10,000,000 for each of fiscal years 2001
through 2003.
(Pub. L. 85-536, Sec. 2[31], as added Pub. L. 105-135, title VI,
Sec. 602(b)(1)(B), Dec. 2, 1997, 111 Stat. 2629; amended Pub. L. 106-
554, Sec. 1(a)(9) [title V, Sec. 503(b), title VI, Sec. 612(a)], Dec.
21, 2000, 114 Stat. 2763, 2763A-695, 2763A-699.)
References in Text
The Javits-Wagner-O'Day Act, referred to in subsec. (b)(4), is act
June 25, 1938, ch. 697, 52 Stat. 1196, as amended, which is classified
to sections 46 to 48c of Title 41, Public Contracts. For complete
classification of this Act to the Code, see Tables.
Prior Provisions
A prior section 2[31] of Pub. L. 85-536 was renumbered section 2[36]
and is set out as a note under section 631 of this title.
Amendments
2000--Subsec. (b)(3). Pub. L. 106-554, Sec. 1(a)(9) [title VI,
Sec. 612(a)], designated existing provisions as subpar. (A), inserted
heading, substituted ``Subject to subparagraph (B), in any'' for ``In
any'', and added subpars. (B) and (C).
Subsec. (d). Pub. L. 106-554, Sec. 1(a)(9) [title V, Sec. 503(b)],
added subsec. (d).
Effective Date
Section effective Oct. 1, 1997, see section 3 of Pub. L. 105-135,
set out as an Effective Date of 1997 Amendment note under section 631 of
this title.
Initial Limited Applicability
Pub. L. 105-135, title VI, Sec. 602(b)(2), Dec. 2, 1997, 111 Stat.
2631, as amended by Pub. L. 106-113, div. B, Sec. 1000(a)(5) [title II,
Sec. 212], Nov. 29, 1999, 113 Stat. 1536, 1501A-295, provided that:
``During the period beginning on the date of enactment of this Act [Dec.
2, 1997] and ending on September 30, 2000, section 31 of the Small
Business Act [15 U.S.C. 657a] (as added by paragraph (1) of this
subsection) shall apply only to procurements by--
``(A) the Department of Defense;
``(B) the Department of Agriculture;
``(C) the Department of Health and Human Services;
``(D) the Department of Transportation;
``(E) the Department of Energy;
``(F) the Department of Housing and Urban Development;
``(G) the Environmental Protection Agency;
``(H) the National Aeronautics and Space Administration;
``(I) the General Services Administration;
``(J) the Department of Veterans Affairs;
``(K) the Department of Commerce;
``(L) the Department of Justice; and
``(M) the Department of State.''
Report
Section 606 of Pub. L. 105-135 provided that: ``Not later than March
1, 2002, the Administrator shall submit to the Committees a report on
the implementation of the HUBZone program established under section 31
of the Small Business Act [15 U.S.C. 657a] (as added by section 602(b)
of this title) and the degree to which the HUBZone program has resulted
in increased employment opportunities and an increased level of
investment in HUBZones (as defined in section 3(p) of the Small Business
Act (15 U.S.C. 632(p)), as added by section 602(a) of this title).''
Section Referred to in Other Sections
This section is referred to in sections 632, 645 of this title;
title 6 section 426.
