FED GOV CON - HUBZone Certification

Govt Contracting
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• Govt Grants & SBIR Process
RECORDING: http://youtu.be/1n8mUFsRcBc
• Simplified Acquisitions
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• Mentor-Protégé Program
RECORDING: https://vimeo.com/103389860
• HUBZone Certification
RECORDING: http://youtu.be/Eokpi70EOz8
• Aug 20 Access to Capital
Guest: John Fedewa, Armcor
Register: https://attendee.gotowebinar.com/register/8982943287949640962
• Aug 21 Winning Proposals
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UNDER THE WEBINAR TAB
PLEASE VISIT WWW.JENNIFERSCHAUS.COM AND SELECT “WEBINARS”

Jennifer Schaus & Associates
GOVERNMENT CONTRACTORS
WEBINAR SERIES
HUBZone Certification
August 14, 2014

• Washington DC Based
• 20+ Yrs Government Contracting
• GSA Schedule Consulting
• Govt Contractor Events
• Govt Contractor Support Services
1717 Penn Ave, NW; #1025
Washington DC 20006
+ 1 – 2 0 2 – 3 6 5 – 0 5 9 8
http://JenniferSchaus.com

SPONSOR ANNOUNCEMENT…
Unanet provides software to over 1,000 Government Contractors that facilitates:
• DCAA Compliant Time Tracking & Approvals
• Expense Reporting Automation with Federal Per Diems
• Real-Time Reporting on Direct & Indirect Costs
• KPIs on Profitability, Utilization, Actual vs. Budget, etc.
• Billing & Revenue Recognition
• Budgeting, Planning & Resource Forecasting
• Contract Management
WEBSITE: www.Unanet.com
CONTACT: MFranklin@Unanet.com

AGENDA:
Speaker: Jon Williams, Partner with PilieroMazza PLLC
Presentation
Audience Q & A
Conclusions & Wrap-Up

888 17th Street, NW
11th Floor
Washington, DC 20006
202-857-1000
jwilliams@pilieromazza.com
Jon Williams

SPEAKER BIO: Jon Williams, Partner
• Member of Government Contracts and Small Business
Programs Groups
• More than 13 years of experience advising contractors on
all aspects of doing business with the federal government,
with a focus on the federal small business programs
including the HUBZone, 8(a), SDVOSB, and WOSB
programs
• Represents contractors in bid protests, size protests,
appeals, claims, and related administrative and court
proceedings
• Frequent speaker and author on government contracting
issues for small businesses

Overview
Preparing for a smooth HUBZone certification process
• HUBZone eligibility criteria
• Employee counting issues
• Employee record issues
• The HUBZone application process
• What documents do you need?
• What to expect
• Changes are coming

HUBZone Eligibility Criteria
• Must be a SMALL business
• Size of a firm includes any affiliates
• Multiple ways that affiliation can arise
• Key is when one firm controls or has the power to control the
other, or a third party or parties control or have the power to
control both, even if this control is not exercised
• Can have affiliates, but must be small combined

HUBZone Eligibility Criteria (Continued)
• Must be at least 51% owned and controlled by a U.S.
citizen
• “Principal office” must be located in a HUBZone
• The location where the greatest number of the firm’s employees
at any one location perform their work
• Job site exception for firms in services and construction
• At least 35% of employees must live in a HUBZone
• “Employee” means all individuals employed on a full-time,
part-time, or other basis working at least 40 hours per month

Employee Counting Issues
• Job site employees must be on a contract
• Job site employee distinction only applicable to principal office
location calculation, not the 35% HUBZone residency requirement
• Employee “test” found in SBA Size Policy Statement No. 1
• Includes considerations such as paying state unemployment taxes,
power to hire and fire employees, supervise employees, etc.
• Vital to keep accurate and current records
• Employee drivers licenses – make sure not expired
• HUBZone maps of employees’ addresses

The HUBZone Application Process
• Verify eligibility
• Gather supporting documentation
• Review sample HUBZone application form
• Review and ask questions
• Access SBA’s General Login System
• Complete and submit online HUBZone application
• Submit any requested supporting documentation

Ready to Apply? Considerations
• About 25% of applications are denied
• Must wait 90 days after denial to re-apply
• SBA statistics demonstrate that more “established” firms
typically have greater success in the Program
• Not a business development program like 8(a) Program
• Only 30% of HUBZone-certified firms in the SBA’s portfolio have
HUBZone contracts, most do not get work
• Hard to stay compliant with all Program criteria

Documents You Will Need
• General business information
• DUNS number
• Business and personal federal tax returns for the last three years
• Business ownership documentation – articles of incorporation, LLC,
etc.
• Citizen documentation for owners
• SAM.gov profile
• Appropriate NAICS codes
• Proof of principal office location, such as lease agreement
• Official payroll records and other information showing employees
residing within HUBZones (drivers licenses, HUBZone maps, etc.)
• Other information supporting HUBZone eligibility requirements

What Happens After You Apply?
• Usually takes three to six months for application to be
processed
• Roughly 10% of applicants will receive a “site visit”
• SBA may have questions about submission

Approved or Denied?
• If approved:
• Go on list of approved HUBZone entities
• Check SBA’s Dynamic Small Business website to ensure it reflects
your status
• Can start pursuing HUBZone projects immediately
• Must recertify continued HUBZone eligibility every three years
• No maximum amount of time in the Program
• If denied:
• No formal appeal process
• May submit an informal “request for reconsideration” if you believe
denial was based on “clear and significant error” of procedures or
significant facts relevant to your application

Changes Are Coming
• 90-day target for processing new applications
• New Standard Operating Procedures coming soon
• Overhaul of regulations expected this year
• Site visits of about 10% per year of all HUBZone
participants will continue
• Reduce full document reviews from once every three years
to once every six years?
• Protest decisions made public?

Questions ? ? ?

Conclusions . . .

Conclusions . . .
• To be eligible for the HUBZone program, your
principal office must be located in a HUBZone
and 35% of your employees must live in a
HUBZone
• Make sure you gather all the eligibility
documents before you apply
• Plan for a 3-6 month application process
• Keep an eye out for coming changes

CONTACT INFO
JSchaus@JenniferSchaus.com
http://JenniferSchaus.com
+ 1 – 2 0 2 – 3 6 5 – 0 5 9 8
Jon Williams
Partner, PilieroMazza PLLC
888 17th Street, NW
11th Floor
Washington, DC 20006
202-857-1000
jwilliams@pilieromazza.com

FED GOV CON - HUBZone Certification

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FED GOV CON - HUBZone Certification