Responding to concerns the SBA 8(a) program is squeezing out opportunities for HUBZOne firms, the Small Business Administration Counsel issued a memorandum letter saying the award of contracts should provide “parity” between the two programs.  
Acknowledging some confusion among contracting officers who believe they must consider 8(a) program contractors before the HUBZone program, the SBA said procuring agencies should first identify qualified 8(a) and HUBZone firms and then consider which contracting vehicle is appropriate.  The ultimate decision as to which program to use should involve a review of whether an agency has met its 8(a) and HUBZone goals.  

This guidance is particularly timely in the light of two recent developments: (1) the Defense Department issued a final rule in the form of a Memorandum of Understanding between DOD and the SBA that permits DOD to award contracts directly to 8(a) participants rather than the longer process of awarding contracts through the SBA and (2) the Federal Procurement Data Center issued a report that not a single federal agency has met its statutory goal of awarding 1.5 percent of prime contracts to HUBZone firms.  The report states agencies need to “Just Do It” to meet increasing HUBZone statutory goals of 2 percent prime contract awards by the end of FY 2001, 2.5 percent in FY 2002 and 3 percent thereafter.

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