Set-Aside Alert Exclusive:

Top industries for HUBZone set-asides

Three industry groups account for the vast majority of current HUBZone set-asides, according to Set-Aside Alert’s new research.

The construction, professional services and administrative support industry groups accounted for 92% of existing HUBZone set-aside contracts expiring in fiscal 2016 and 2017, Set-Aside Alert found.

Construction (NAICS 23) accounted for $744 million, of 64% of the total. That included $552 million in the 236220 NAICS Code, Commercial and Institutional Building Construction.

Professional, Scientific and Technical services (NAICS 54) accounted for $265 million, or 22% of the total. Most was in the 541519 NAICS Code, Other Computer Related Services, at $196 million.

Administrative/Support/Waste Management (NAICS 56) contracts accounted for $79 million, or 7% of the total.

In addition to the top three industry groups, several NAICS Codes had high values of expiring HUBZone set-asides. Those included NAICS 333924, Industrial Truck Manufacturing, which had $25 million; and NAICS 315211, Men and Boys Cut and Sew Apparel, which had $14 million.

The total value of HUBZone set-asides expiring in fiscal 2016-2017 was $1.189 billion.

Set-Aside Alert’s study

Set-Aside Alert compiled a database of HUBZone set-asides expiring in fiscal 2016 and 2017, totaling $1.189 billion. Many of those are likely to remain within the HUBZone program when they expire, and to be recompeted as HUBZone set-asides.

We sorted the database by six-digit North America Industry Classification System codes to identify the top 30 NAICS Codes, which represented contracts, and by two-digit NAICS industry group codes. The value of the top 30 NAICS Codes comprised more than 97% of the value of all the HUBZone set-asides expiring in fiscal 2016-2017.

For comparison’s sake we also compiled a database of HUBZone set-asides expiring for the next 20 years or longer. Those totaled $1.363 billion.

We focused on the $1.189 billion worth expiring in fiscal 2016 and 2017 to make the results more timely.

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