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Old-Dog

Are HubZone small businesses eligible to be a Protege?

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Does being small business in a hubzone qualify for DOE's Mentor/Protege program? The company in question is not a 8a, women owned, small disadvantaged business?

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There is a point of contact for questions on this web page. http://www.energy.gov/osdbu/mentor-protege-program

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Well I got hooked on this question as the subject is usually covered in the DEAR.

When I went to the DEAR on the Hill AF site Subpart 919.7 of the DEAR does not come up. However in using the eCFR site to find the current Title 48, Chapter 9, Subchapter D, Part 919, Subpart 919.70 paragraph 919.7007(a) (1) does not show a HUBZone as being eligible for the DOE mentor/protégé program.

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You should be able to verify your opinion by calling the POC in the link that I provided.

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A close read of the link provided by Joel verifies the DEAR (CFR) citation as there is no reference to HUBZone in this quote from the site.

"The Energy Department's Mentor-Protégé Program is designed to encourage DOE prime contractors to assist small disadvantaged businesses certified by the Small Business Administration under Section 8(a) of the Small Business Act (8(a)), other small disadvantaged businesses, women-owned small businesses, Historically Black Colleges and Universities, and other minority institutions of higher learning, and small business concerns owned and controlled by service disabled veterans in enhancing their capabilities to perform contracts and subcontracts for DOE and other Federal agencies. The program seeks to foster long-term business relationships between these small business entities and DOE prime contractors, and to increase the overall number of these small business entities that receive DOE prime and subcontracts."

And here is the quote from the DEAR (CFR)

919.7007 Eligibility to be a Protege.
(a) To be eligible for selection as a Protege, a firm must:
(1) Be a small business certified under Section 8(a) of the Small
Business Act by SBA, other small disadvantaged business, a women-owned
small business, HBCU, or any other minority institution of higher
learning, or a small business concern owned and controlled by service
disabled veterans;

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It is my opinion, too that a HUBZone business is not necessarily an SDB. Apparently, the HUBZone program is intended to promote and encourage business development and employment by location rather than ownership status. It appears that SDB status and/ or other specific economically disadvantaged status is a criterion for the DOE Mentor/Protege program. That, makes sense to me.

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I have not checked, but does anyone know if the Energy M/P program has been approved by the SBA so that the parties would not be considered affiliated with each other?

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I agree as well that HUBZones are all SB's but not necessarily SDB's - - per the HUBZone Empowerment (Public Law 105-135). The HUBZone Empowerment Contracting Program, which is included in the Small Business Reauthorization Act of 1997, stimulates economic development and creates jobs in urban and rural communities by providing contracting preferences to small businesses that are located in HUBZones and hire employees who live in HUBZones.

https://www.sba.gov/sites/default/files/files/small_business.pdf

To qualify as a HUBZone, a business must meet the following criteria:

  • It must be a small business by SBA size standards;
  • Its principal office must be located within a HUBZone, which includes lands on federally recognized Indian reservations;
  • It must be owned and controlled by one or more U.S. citizens. Approved ownership can also be by a Community Development Corporation or Indian tribe; and
  • At least 35% of its employees must reside in a HUBZone.

The SBA must certify small businesses that want to claim HUBZone status. HUBZone businesses are eligible to receive sole-source or set-aside contracts, or receive a price preference up to 10% when competing for full and open competition procurements.

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