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For Federal Contractors & Subcontractors: the Altavista HUBZone

Town of Altavista
HUBZone Certified Logo

The Town of Altavista is a Governor-designated HUBZone.

The Historically Underutilized Business Zone (HUBZone) Empowerment Contracting Program is a federal program for small companies that operate and employ people in Federal HUBZones. Any Altavista businesses actively pursuing or planning to pursue federal contract opportunities or who are currently subcontractors to a prime federal contractor should contact the Economic Development department for more information on this program. The department has information not only on the HUBZone itself but can also direct you to support organizations that guide you through the steps to becoming a federal contractor.

Every year the federal government has to spend 3% of its total contracting budget on small businesses located in designated HUBZones. It limits competition for certain contracts to businesses in historically underutilized business zones. It also gives preferential consideration to those businesses in full and open competition.

Joining the HUBZone program makes your business eligible to compete for the program’s set-aside contracts. HUBZone-certified businesses also get a 10% price evaluation preference in full and open contract competitions.

HUBZone-certified businesses can still compete for contract awards under other socio-economic programs they qualify for.

The SBA HUBZone Program website offers a very user-friendly guide to understanding the program and applying for certification, which includes several useful documents when considering applying for HUBZone certification:

How does the SBA decide who qualifies?

After submitting all necessary documentation, small businesses will be designated as HUBZone certified if they meet the following criteria:

  • The firm must be a small business based on the North American Industry Classification System (NAICS) for size standards.
  • The firm’s principal office must be in a HUBZone.
  • 35% of the firm’s total workforce must reside in a HUBZone (see below for more).
  • The business must be at least 51% owned and controlled by U.S. citizens, or a Community Development Corporation, an agricultural cooperative, or an Indian tribe (including Alaska Native Corporations).

Applications will be processed within 60 days of a complete submission.

How do I know if the SBA would classify my business as a “small business?”

To qualify, businesses must satisfy SBA's definition of a small business concern, along with the size standards for small business. It's worth a look if your business has fewer than 200 employees. 

A size standard, which is usually stated in number of employees or average annual receipts, represents the largest size that a business (including its subsidiaries and affiliates) may be to remain classified as a small business for SBA and federal contracting programs. The definition of “small” varies by industry.

For more information about size standards, you can contact the Office of Size Standards by email at sizestandards@sba.gov or by phone at 202-205-6618.

How do I know if my business is located in a HUBZone?

Enter your business’ principal office address (the location where the greatest number of employees perform their work, excluding contract sites) into the HUBZone Map

Do ALL 35% of the firm’s total workforce have to reside in Altavista?

No. As long as the employees reside in any HUBZone, they can be counted toward the 35% needed to qualify. Nearby HUBZones include all of Pittsylvania County, Halifax County, Charlotte County, and a majority of the City of Lynchburg. Altavista businesses generally pull their workforce from the Town itself and many of these nearby areas making it likely that any Altavista small businesses would meet the workforce qualification. 

What kinds of contracts would my business be eligible for if it were HUBZone-certified?

There are four (4) types of HUBZone Federal Contract Opportunities:

  1. Competitive: Contracts can be set-aside for HUBZone competition when the contracting officer has a reasonable expectation that at least two qualified HUBZone small business concerns (SBCs) will submit offers and that the contract will be awarded at a fair market price.
  2. Sole-source: HUB Zone contracts can be awarded if the contracting officer determines that:
    1. Only one qualified HUB Zone SBC is responsible to perform the contract
    2. Two or more qualified HUB Zone SBCs are not likely to submit offers, and
    3. The anticipated award price of the proposed contract, including options, will not exceed: $5 million for a requirement within the North American Industry Classification System (NAICS) code for manufacturing or $3 million for a requirement within all other NAICS codes.
  3. Full and open: Competitive contracts can be awarded with a price evaluation preference. The offer of the HUBZone small business must not be 10 percent higher than the offer of a non-small business.
  4. Subcontracting: All subcontracting plans for large business Federal contractors must include a HUBZone subcontracting goal.