New HUBZone Rule Is Proposed The Federal Acquisition Regulation councils are proposing to adopt SBA’s rules concerning eligibility of HUBZone companies. To be eligible for a HUBZone set-aside contract, the rule says the company must be a HUBZone small business concern both at the time it submits its initial offer and at the time of contract award. Companies are already required to represent that they are eligible HUBZone firms at the time of their initial offer. The new rule would require the company to notify the contracting officer of any material changes before award that could make it ineligible. In adopting a similar rule in 2004, SBA said its purpose was to ensure that the company receiving an award was still eligible, so HUBZone residents would get the benefit of the contract. To be eligible for the HUBZone program, a company must have its principal office in a HUBZone and 35% of its employees must be residents of a HUBZone. Recent investigations by the Government Accountability Office have uncovered widespread violation of the rules. (SAA, 4/3) The proposed rule is FAR case 2006-005. Comments are due June 12.