FAR 19.1303—Status as a HUBZone small business concern.
Plain-English Summary
FAR 19.1303 explains how a firm’s HUBZone small business status is established, where that status is shown, and when it must exist for HUBZone contracting eligibility. It covers SBA’s role in making the status determination under 13 CFR part 126, SBA’s designation of the firm in the Dynamic Small Business Search (DSBS) and SAM, and the rule that only firms shown as HUBZone small business concerns in those systems may receive HUBZone preferences. It also addresses HUBZone joint ventures, including the conditions under which a joint venture may qualify as a HUBZone small business concern, and it states the timing rule that the concern must be HUBZone-qualified at the time of its initial offer. In practice, this section tells contracting officers how to verify eligibility and tells contractors that HUBZone status is an official, system-based designation—not a self-declared label. It also makes clear that HUBZone preferences are not tied to where the work will be performed, which is a common point of confusion. For contractors, the key takeaway is that maintaining current SBA and SAM records is essential; for agencies, the key takeaway is that eligibility must be checked against the official databases at the right time.
Key Rules
SBA makes the status determination
HUBZone small business status is determined by SBA under 13 CFR part 126, not by the contracting officer or the contractor’s own assertion. The FAR relies on SBA’s official determination as the basis for eligibility.
DSBS and SAM control eligibility
If SBA approves the concern, it designates the firm in DSBS and that designation also appears in SAM. Only firms shown in both systems as HUBZone small business concerns are eligible for HUBZone preferences.
Place of performance does not control
HUBZone preferences are not contingent on where the contract work will be performed. Eligibility depends on the firm’s HUBZone status, not on whether the work is performed in a HUBZone area.
Joint ventures can qualify
A joint venture may be treated as a HUBZone small business concern if it qualifies as small under 19.301-1(a)(2)(i), includes at least one HUBZone small business concern as a party, and complies with 13 CFR 126.616(a) through (c).
Status must exist at initial offer
To be eligible for a HUBZone contract under this section, the concern must be a HUBZone small business concern at the time it submits its initial offer. Later acquisition of HUBZone status does not cure ineligibility at the offer stage.
Responsibilities
Small Business Administration (SBA)
Determine whether a concern qualifies as a HUBZone small business concern under 13 CFR part 126 and designate eligible firms in DSBS, with the designation reflected in SAM.
Contracting Officer
Verify that the offeror is designated in DSBS and SAM as a HUBZone small business concern when evaluating eligibility for HUBZone preferences, and apply the timing rule requiring status at the time of initial offer.
Contractor / Offeror
Obtain and maintain SBA-recognized HUBZone status, ensure DSBS and SAM records are current, and confirm eligibility exists when submitting the initial offer. If proposing as a joint venture, ensure the venture meets the small business and HUBZone joint-venture requirements.
Joint Venture Members
Ensure at least one venturer is a HUBZone small business concern and that the joint venture complies with the applicable SBA joint-venture requirements in 13 CFR 126.616(a) through (c).
Agency / Procurement Staff
Use the official SBA/SAM designations to support acquisition planning and set-aside or preference decisions, and avoid relying on place of performance as an eligibility test.
Practical Implications
A firm cannot simply claim HUBZone status in its proposal; it must already be designated by SBA and shown in DSBS and SAM.
Contracting officers should check the official databases at the relevant time, especially before award and when evaluating initial offers, because status at the offer date is what matters.
A common mistake is assuming the contract must be performed in a HUBZone area. This section says the preference is based on the firm’s status, not the work location.
Joint ventures require careful compliance review. It is not enough that one member is HUBZone; the venture must also be small and satisfy the SBA joint-venture rules.
Contractors should keep SAM and DSBS information synchronized and current, because a mismatch or outdated designation can jeopardize eligibility for HUBZone preferences.
Official Regulatory Text
(a) Status as a HUBZone small business concern is determined by the Small Business Administration (SBA) in accordance with 13 CFR Part 126 . (b) If SBA determines that a concern is a HUBZone small business, it will designate the concern as a HUBZone small business in the Dynamic Small Business Search (DSBS) at https://web.sba.gov/pro-net/search/dsp_dsbs.cfm . SBA's designation also appears in SAM. Only firms designated in DSBS and SAM as HUBZone small business concerns are eligible for HUBZone preferences. HUBZone preferences are not contingent on the place of performance. (c) A joint venture may be considered a HUBZone small business concern if— (1) The joint venture qualifies as small under 19.301-1 (a)(2)(i); (2) At least one party to the joint venture is a HUBZone small business concern; and (3) The joint venture complies with 13 CFR 126.616(a) through (c) . (d) To be eligible for a HUBZone contract under this section, a HUBZone small business concern must be a HUBZone small business concern at the time of its initial offer.