The HUBZone (Historically Underutilized Business Zone) Empowerment Contracting Program stimulates economic development and creates jobs in urban and rural communities by providing Federal contracting preferences to small businesses.

There are four types of HUBZone contract opportunities:

1. Competitive: Contracts can be set-aside for HUBZone competition when the contracting officer has a reasonable expectation that at least two qualified HUBZone small business concerns (SBCs) will submit offers and that the contract will be awarded at a fair market price.
2. Sole-source: HUBZone contracts can be awarded if the contracting officer determines that:
   • only one qualified HUBZone SBC is responsible to perform the contract,
   • two or more qualified HUBZone SBCs are not likely to submit offers and
   • the anticipated award price of the proposed contract, including options, will not exceed:
     • $5 million for a requirement within the North American Industry Classification System (NAICS) code for manufacturing or
     • $3 million for a requirement within all other NAICS codes
3. Full and open competitive contracts can be awarded with a price evaluation preference. The offer of the HUBZone small business must not be 10 percent higher than the offer of a non-small business.
4. Subcontracting : All subcontracting plans for large business Federal contractors must include a HUBZone subcontracting goal. customers in order to better serve them and to focus on providing the desired solution.