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HUBZone Price Preference Adjustment

The Nancy Byerly Show

Release Date: 05/13/2019

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Today, we will be explaining the HUBZone Price Preference adjustment.  Contracting Officers must give qualified HUBZone businesses a ten percent price adjustment on certain contracts. Not sure what the HUBZone program is?  Check out this blog. Now on to the rest of the article.How does a price evaluation preference affect the bid of a HUBZone business in full and open competition?The HUBZone Price Preference adjustment happens on full and open competition.  In other words, it happens on contracts that are open to large and small businesses. The Government must deem the price offered by the HUBZone business to be lower than the price offered by large business. The HUBZone businesses price must be less than 10% higher than the price offered by the large business.  For a best value procurement the Government must apply the 10% preference to the large business before determining best value.  Please note this does not apply to HUBZone business if part of a HUBZone set-aside contract.Basically after the Government has considered the price evaluation adjustment and the HUBZone businesses bid is equal to the price offered by a large business the contract goes to the HUBZone business.ConclusionWe hope you enjoyed today's article.  The key points to remember is that the price preference applies only to HUBZone businesses.  Also it only applies to contracts open to large and small businesses.  Remember, to subscribe to be kept up to date on all our medias.
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