HUBZonesWork for America

Mark Crowley, Executive DirectorHUBZONE CONTRACTORS NATIONAL

COUNCIL

HUBZone Program Overview

Federal Small Business Contracting Programs• Small Disadvantaged Business / 8(a)• Woman-Owned Small Business• Service-Disabled Veteran-Owned• Historically Underutilized Business Zone

(HUBZone)HUBZone is the only set-aside program based on location and employment, rather than ownership status.

HUBZone Program Overview (continued)

Certification Requirements

• The firm must be a small business according to the size standards based on the North American Industry Classification System (NAICS).

• The firm must be at least 51% owned and controlled by citizens of the United States (or a community development corporation, an agricultural cooperative, or an Indian tribe).

• The firm's principal office (where the greatest number of employees perform their work, excluding contract sites) must be located in a designated HUBZone area.

• At least 35% of the firm's total workforce must reside in a designated HUBZone area.

HUBZone Program Overview (cont.)

Spr 2011 Fall 2011 Spr 2012 Fall 2012 Spr 2013 Win 20140

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Number of HUBZone Firms

HUBZone Map• Non-Metro Counties

– 24% are HUBZone-qualified– 38% will expire by 2017

• Census Tracts– 20% are HUBZone-qualified– 10% will expire in 2015

• * 3-year redesignation period for map changes *

HUBZone Company Profile

• HUBZone-Certified Companies– Services 45%– Construction 35%– Manufacturing 12%– Research & Development 8%

• Average Number of Employees per Company = 6

• All 50 States, DC, & Territories

HUBZone Success StoriesRIDGWAY VALLEY ENTERPRISES Montrose, Colorado

Ridgway Valley Enterprises believes that the HUBZone Program has directly impacted its survivability. HUBZone contracts have helped the company keep 45 loyal team members employed through the recent economic downturn.

Due to its HUBZone status, the company successfully obtained a Multiple Award Task Order Contract (MATOC) with the National Park Service, which has been the difference between continuing business and shutting its doors.

Ridgway was the HUBZone Council’s2010 HUBZone Corporate Citizen of the Year

HUBZone Success Stories (continued)

VETERANS TRADING COMPANYPark City, Utah

Service-Disabled Veteran-Owned and HUBZone-certified Veterans Trading Company, which actually served as the prime contractor (with Lockheed Martin as the subcontractor) on a $10.8 million project, has created six new jobs in Ocala, Florida.

The project would not have developed without the firm's HUBZone certification and has led to additional business opportunities with Lockheed and other federal prime contractors.

JOHNSON TRUCKINGSweet Home, Oregon

In three years as a HUBZone firm, Johnson Trucking has been able to hire four new full-time employees from its small community.

HUBZone SpendingHUBZONE FEDERAL SPENDING - FY13

$6,200 million = 1.76% of totalDOLLAR VOLUME ($mil) – Top 8 Agencies Defense $4,100 Homeland Security $418 Veterans Affairs $313 Agriculture $198 Interior $154 NASA $149 Transportation $130 Health & Human Services $110

SPENDING PERCENTAGES – Top 8 Agencies Small Business Administration 9.0% Transportation 8.0% Interior 6.5% Treasury 5.5% Securities & Exchange Com 4.3% Agriculture 4.0% Homeland Security 3.3% Labor 3.2%

Government-Wide Spending Goal = 3.00%Actual FY13 HHS Spending = 0.57%

Source: Small Business Dashboard as of 14 Feb 2014

HUBZone Spending (continued)

HUBZone Spending Fiscal 2013 – by General NAICS Category

$6.2 Billion • Building Construction• Manufacturing• Information Technology• Facility Support• Administrative Support• Building Trades• Hwy & Bridge Construction• All Other Categories

HUBZone Council Mission

Non-Profit Independent Trade Association• Strengthen, Improve & Promote the HUBZone

Program• Help HUBZone Companies Maximize Success in

Obtaining Contracts• Support Economic Development in America’s Most

Economically-Challenged Communities

Membership Benefits

• Legal Services• Marketing & Contracting

Opportunities• Information & Support• Rewards, Discounts & Exclusive

Services• Members-Only Website Resources

National HUBZone Conference

September 18-19, 2014Westfields Marriott Conference Center

Chantilly (Dulles), Virginia