(Editor’s Note.  The following case shows the preference for HUBZone firms over other types of firms.)

IPG, a HUBZone firm, protested the Marine Corps decision to make a sole-source award to a service-disabled veteran-owned small business concern (SDVOSBC). The contracting specialist considered a HUBZone sole source award and contacted companies to gauge interest but ultimately decided that only one VGS, a SDVOSBC company, was interested and when a second SDVOSBC set aside was awarded IPG protested.  GAO sustained the protests recognizing that under the FAR the HUBZone program provides an award will be restricted to HUBZone small businesses if not less than two qualified HUBZone will submit offers at a fair market price. The SDVOSBC program provides an agency “may” set aside acquisitions if conditions permit.  The GAO concluded the agency was required to consider whether a HUBZone set aside was warranted before proceeding with a sole source award to VGS under the SDVOSBC program (Int’l Program Group, GAO, B-400278).

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