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Federal Market Intelligence for Small Business |
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Where are HUBZones thriving? Here are the top 20 locations in USFour of the top 20 locations for HUBZone small businesses are in the District of Columbia and Maryland, according to new research by Deltek. While the Small Business Administration’s HUBZone program has been diminishing overall, vendors in the nation’s top 20 HUBZone locations have received $9 billion in federal prime contracts in the last five fiscal years. That’s nearly a quarter of the total of the $39.5 billion in HUBZone prime contracts awarded during the same five-year period, Deltek said in a recent report. Among the top 20 HUBZone locations, the District of Columbia leads the pack, with $1.2 billion in prime contracts awarded to HUBZone vendors from fiscal 2010 to fiscal 2014, Deltek said. San Antonio, TX, with $1.1 billion in such awards, and San Diego, CA, with $869 million, are the next most successful locations for HUBZone vendors, Deltek said. Maryland has three HUBZone locations in the top 20 list: Silver Spring, with $287 million; Baltimore, with $278 million; and Rockville, with $261 million. Together, they totaled $826 million in HUBZone contracts from fiscal 2010 to 2014, Deltek said. Alabama, Louisiana, Oklahoma and Texas each have two locations in the top 20: San Antonio and El Paso, TX, totaling $1.3 billion; Huntsville and Montgomery, AL, totaling $873 million; Tulsa and Oklahoma City, OK, totaling $838 million; and New Orleans and Kenner, LA, totaling $598 million. The remaining top 20 HUBZone locations are: Anchorage, AK, $532 million; Eden, NC, $409 million; New York, NY, $401 million; Kansas City, MO, $351 million; Piketon, OH, $304 million; Santa Fe, NM, $255 million; and Detroit, MI, $251 million. Overall, total prime contract and set-aside obligations for HUBZone small businesses have been shrinking dramatically in recent years, falling from $11.6 billion in fiscal 2010 to $4.4 billion in fiscal 2014, Deltek reported. Set-asides comprise about a quarter to a third of those totals, Deltek said. The SBA’s fiscal 2013 procurement scorecard reported that HUBZone businesses received 1.7% percent of eligible federal contracts, falling short of the 3% goal. HUBZone business owners previously have reported that there are fewer set-asides to bid upon, while agency officials say reductions in eligible geographic areas have reduced the number of HUBZone firms, which in turn has made it more difficult to create set-asides for HUBZones. (Editor’s note: See Set-Aside Alert HUBZone survey and story of April 18, 2014) Certain industries are doing better than others in HUBZones. From fiscal 2010 to 2014, 46% of the prime contracts to HUBZone vendors were for architecture and engineering services; 18% for professional services; 10% for information technology; 4% for operations and maintenance; 4% for clothing and textiles; 3% for defense and aerospace; and 15% for other, according to Deltek. The top NAICS code for HUBZone small business is 236220 (commercial & institutional building construction), with about $10.3 billion in prime obligations from fiscal 2010 to 2014. Major HUBZone set-asides expected in fiscal 2015-2016 Other top NAICS codes were 237990 at $3.6 billion (other heavy & civil engineering construction) ; 237310 at $1.8 billion (highway, street and bridge construction); 541519 $1.7 billion (other computer-related services) and 561210 $1.6 billion (facilities support services), Deltek said. The top task order programs for HUBZone set-asides currently in operation are FirstSource II, with $250 million in HUBZone set-aside obligations to date; PTAPSS (State Dept.), with $75 million; HITSS (State Dept.), with $65 million; and NAVFAC MATOC in NC, with $25 million, Deltek reported. In October 2014, SBA Administrator Maria Contreras-Sweet announced the launch of the three-pronged “Destination:HUB” initiative to improve HUBZone participation and success. Destination HUB includes an in-depth assessment of the HUBZone program; analysis of best practices for HUBZones; and a grassroots educational initiative with communities to boost participation in HUBZones. More information: Deltek report on HUBZones: http://goo.gl/BXKzNC .
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