How to reach HUBZ goals
What helps agencies with HUBZone success?
Only 9 federal agencies met the government’s 3% goal for contracting with small businesses in Historically Underutilized Business Zones (HUBZones) in fiscal 2016. What factors helped those 9 agencies succeed and other agencies fail?
A recent report looked into that question and made four conclusions:
- The main barriers to success were agencies’ perceptions of HUBZone firms’ availability and capabilities and unfocused HUBZone marketing.
- Agencies that did not meet the 3% HUBZone goal put HUBZone firms at a lower priority than small businesses participating in programs for disadvantaged owners, women owners, and service-disabled veteran owners.
- The main factors that contributed to reaching the HUBZone goal were extensive marketing of the HUBZone program to small businesses to increase the vendor base; targeted research on HUBZone small businesses’ capabilities in fulfilling agency needs; and comprehensive training for small businesses about federal procurement.
- Overall, few agencies utilized HUBZone set-asides to help them reach the 3% HUBZone small business procurement goal.
The study identified the Agriculture, Commerce, Homeland Security, Interior, Transportation and Treasury departments, as well as GSA, OPM and SBA, as the 9 agencies that met the HUBZone goal in fiscal 2016.
Agencies that participated in matchmaking events for HUBZone firms, used HUBZone set-asides and awarded contracts to small businesses in other categories, such as women-owned, who also were HUBZone firms, had greater success in meeting HUBZone goals.
Agencies reported a perception that there are too few HUBZone firms to meet their demands, and that it is difficult to sign up additional HUBZone firms, among other problems.
The study was prepared for the SBA by Global Evaluation and Applied Research Solutions.
More information:
HUBZone Evaluation Report: https://bit.ly/2RMJvXE