After 8 Years, HUBZone Program Is Widely Ignored Only about 13% of federal contracting offices have awarded even one HUBZone contract during the first eight years of the program’s existence, according to a new report. The report was prepared by Henry Beale and Nicola Deas of Microeconomic Applications Inc. for SBA’s Office of Advocacy. “With some exceptions, contracting officers have not bought into the HUBZone program,” they wrote. While HUBZone contracts have grown steadily, from $44 million in fiscal 2000 to $1.76 billion in fiscal 2007, the government has never achieved the 3% goal for contracting with HUBZone firms. Fewer than one-fourth of HUBZone companies have been awarded a contract through the program. Most certified companies are very small; only about 7% of them have more than 50 employees. The report said SBA has not effectively promoted the program. “Although HUBZone staff have been uniformly described as helpful and informative, there does not seem to be any systematic outreach or promotion of the program beyond responding to inquiries.” It said little outreach has been done to acquaint local officials with the availability of HUBZone set-asides. The authors conclude that the program, which was enacted by Congress to bring jobs and business to poor areas, has had little economic impact. “The impact in two-thirds of all HUBZones is nil,” they said. About 2,450 areas are designated as HUBZones. Construction is the largest HUBZone industry, with 64% of the dollars and nearly half the contracts. Administrative and support services, manufacturing, and professional, scientific, and technical services are next, each with less than 15% of the dollars. The report is available at