HUBZone Contractors National Council Annual Conference HUBZone Program Updates October 12, 2018

Regulation Change - Indirect Ownership 13 CFR § 126 Regulation Change - Indirect Ownership 13 CFR § 126.200(b) (effective May 25, 2018) Broadens program eligibility by allowing for both direct and indirect ownership of firms by United States citizens. Aligns more precisely with the underlying statutory authority. Direct ownership is not mandated in HUBZone statute. Purposes of HUBZone program — capital infusion in underutilized geographic areas and employment of individuals living in those areas — can be achieved whether ownership by U.S. citizens is direct or indirect.

NDAA 2018 - HUBZone Geographical Areas Effective December 12, 2017, Qualified Census Tracts, Qualified NonMetro Counties & redesignated areas do not change until after January 1, 2020 (i.e. when results of 2020 Census are available) Changes will be published every 5 years, beginning January 1, 2020 (i.e. when results of 2020 Census are available) Governors can petition SBA for HUBZone- designation of certain rural areas (effective 1/1/2020).

NDAA 2018 – HUBZone Performance Reporting (effective January 2020) Initial Applications – verify eligibility within 60 days after receiving complete application package (down from 90 days). Recertification will change from the current submission of a certification document to a fully documented review, similar to initial application. SBA will conduct program examinations using a risk-based analysis to select which firms are examined. If a firm is found to no longer meet Program requirements, it will have 30 days to submit documentation demonstrating compliance. During this period, the firm may not compete for or be awarded contracts under HUBZone authority. If the firm fails to demonstrate compliance, SBA will decertify it. Annual report to Congress on whether HUBZone is promoting economic development in distressed areas (first annual report due Jan 2021).

GAO Report September 2018 – GAO-18-666 Small Business Administration Could Further Strengthen HUBZone Eligibility Reviews in Puerto Rico and Program-wide: https://www.gao.gov/assets/700/694676.pdf Recommendations: Update internal policy manuals for certification and recertification reviews to reflect existing policies and procedures. Conduct and document reviews of staff compliance with procedures associated with HUBZone certification and recertification.

On the Horizon (approximate dates) Oct/Nov 2018 – Federal Register, https://www.federalregister.gov/, publishes proposed regulatory changes to 13 CFR part 126 (HUBZone regulations) Feb/Mar 2019 – HUBZone initial application deploys in https://certify.sba.gov/ Aug/Sep 2019 – Federal Register, https://www.federalregister.gov/, publishes proposed regulatory changes to impalement the HUBZone requirements in the NDAA 2018.

Program Exams (PE) – FY19 Selected firms had been awarded over $750,000 in Federal contracts 544 firms – site visits 378 firms – full document review Program Exam – full document review Each quarter firms will receive email notices (DSBS email address) – depending on the month of their recertification (30 calendar days to respond) Program Exam Office Hours – dates and access instructions included in the email notices Recertification date – see DSBS profile November 22, 2018 – due date for responses to 1st round of Program Exams Note: Recertification is a separate action

HUBZone Webinars Understanding How HUBZones are Designated https://youtu.be/k0j9AniLTdI Employment and Affiliation in the HUBZone Program https://youtu.be/DLCEjoRDDoQ Continued HUBZone Compliance:  How to Maintain Your HUBZone Certification https://youtu.be/_gKBw-XjvIg HUBZone Joint Ventures: How to Partner with Other Companies for HUBZone Contracts https://youtu.be/ZBJfs2h-w3Q HUBZone Protests and Appeals https://youtu.be/LgBGMt-ge4g HUBZone Contracting:  Make the Federal Government Your Customer https://youtu.be/LA0LKY5KTtE Note: these webinars were recorded prior to the change in the ownership rule (refer to slide 4 in this deck)

HUBZone Resources HUBZone Frequently Asked Questions: https://www.sba.gov/contracting/government- contracting-programs/hubzone-program/frequently- asked-questions HUBZone Program Office Hours Tue & Thu: 2:00 to 3:00 p.m. EST.  Access instructions: http://www.sba.gov/hubzone Participants influence the topics by their questions and the HUBZone staff facilitates the discussion by providing the answers and introducing specific topics as time permits.  This format offers the opportunity to learn how to maintain eligibility to decrease the possibility of an initial application being declined or being decertified after obtaining the HUBZone certification.  Helpdesk: HUBZone@sba.gov