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FAR ClauseSmall Business

FAR 52.219-3Notice of HUBZone Set-Aside or Sole Source Award

Restricts competition to HUBZone small business concerns. Includes provisions for HUBZone sole-source awards.

When This Clause Applies

Used when the CO sets aside an acquisition for HUBZone competition or makes a sole-source HUBZone award (up to $7M for manufacturing, $4.5M for services).

What This Means for Contractors

Only HUBZone-certified firms may compete. Certification must be current at the time of offer and at award. HUBZone firms enjoy a 10% price preference in full-and-open competitions involving them and large businesses. Performance of work requirements (35% of employees living in HUBZone) must be maintained throughout performance.

Common Pitfalls

  • 1Letting HUBZone certification lapse before award
  • 2Falling below the 35% HUBZone-residence employee threshold during performance
  • 3Confusing HUBZone preference (price) with HUBZone set-aside (eligibility)

Related Topics

FAR 52.219-3HUBZone set asideHUBZone certificationHUBZone sole source

Need help complying with FAR 52.219-3?

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