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HUBZone JV


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According to 13 CFR 126.616 (emphasis added)

(a) HUBZone joint venture. A qualified HUBZone SBC may enter into a joint venture with another qualified HUBZone SBC for the purpose of submitting an offer for a HUBZone contract. The joint venture itself need not be certified as a qualified HUBZone SBC.

The problem this creates is that if the joint venture is not certified as a HUBZone in SAM, it does not show as a HUBZone in FPDS-NG, which means that the awarding agency gets no socioeconomic HUBZone credit for the award. We are now in this situation as we did a HUBZone set-aside, received an offer from a HUBZone JV and now we have discovered if we award to that JV, we will get no HUBZone credit. We conferred with the SBA and were told they would not certify a JV because they don't have the resources to certify every HUBZone JV that is created. The "workaround" they recommended was to award to one of the two HUBZone companies that comprise the JV. That raises concerns for us as that would be a different legal entity than the one that submitted the offer and we believe the next lowest offeror would protest.

Has anyone else ran into this? What did you do?

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Yes, we contacted their "help" desk and they referred the issue to SAM because that is where the info originates, who refers it to SBA because only they can certify HUBZone companies, who refuses to certify the JV.

It's a nice system of pass the buck.

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  • 3 weeks later...

Just to complete this topic, my agency had to work with the SBA, GSA (for SAM) and FPDS-NG in order to "hard code" the JV as a HUBZone company so that my agency can receive the appropriate socioeconomic credit for the award. Sad... but true.

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