are Procurement Opportunity Programs?
Procurement Opportunity Programs (POP) provide direct HUD contracting
and subcontracting opportunities to businesses and organizations
which are eligible for preferential treatment under a variety of
Federal laws, Executive Orders, etc. (e.g., the Small Business Act).
Eligible organizations include: small, small disadvantaged, women-owned,
historically underutilized business zone (HUBZone), veteran-owned,
and service disabled veteran-owned small businesses. The POPs also
provide a means for establishing and monitoring HUD's annual goals
for the participation of other eligible small businesses in its
direct procurement of supplies and services and to report HUD's
performance to the U.S. Small Business Administration (SBA).
Office of Small and Disadvantaged Business Utilization (OSDBU),
created in response to Public Law 95-507 (the Amendments to the
Small Business Act of 1958), is responsible for the development
and administration of the POPs. For further information about the
POPs you may contact the OSDBU directly (see Appendix
II). A brief description of each of the current POPs follows.
Business Set-Aside Program (see also Federal Acquisition Regulation,
"FAR," Subpart 19.5)
15 of the Small Business Act, as amended, requires the Federal Government
to reserve a fair proportion of its total purchases and contracts
for property and services for small business concerns. The Government
does this by reserving or "setting aside," entire procurements or
parts of procurements for small businesses. This does not guarantee
that any particular small business will receive a contract. It means
that only small businesses may compete for the contract ("total
small business set-aside") or the reserved portion ("partial small
Small Business Act also requires the Government to buy goods and
services at competitive, fair market prices. Therefore, contracts
are set aside only when at least two qualified small businesses
are expected to submit offers that are competitive in terms of market
prices, quality and delivery. In this context, "market price" means
a price based on reasonable costs under normal competitive conditions,
and not lowest possible cost (FAR 19.001).
SBA establishes size standards defining small businesses on an industry-by-industry
basis. They are defined by dollar volume of sales, number of employees
or a combination of these factors. Size standards are published
in FAR Subpart 19.1 and are also available online at SBAs
Internet site. The size standard is particular to the supplies
or services being procured, e.g., it varies by procurement.
Business Subcontracting Program (see also FAR Subpart 19.7)
211 of Public Law 95-507 requires that the successful offeror or
bidder on contracts valued at $500,000 or more ($1 million for construction
of public facilities) must submit to the awarding agency an acceptable
subcontracting plan that sets percentage and dollar goals for the
award of subcontracts to small business, veteran-owned small business,
service-disabled veteran-owned small business, HUBZone small business,
small disadvantaged business, and women-owned small business concerns.
(NOTE: Small business concerns receiving prime contracts are
exempt from this requirement.) The plan must be submitted and
accepted before the contract may be awarded. Appropriate HUD staff
(OSDBU and Contracting Officers) review all subcontracting plans
submitted by prime contractors to ensure compliance with the requirements
of Section 211. In addition, FAR 19.702 requires, "Any contractor
receiving a contract for more than the simplified acquisition threshold
[$100,000] must agree in the contract that small business, veteran-owned
small business, service-disabled veteran-owned small business, HUBZone
small business, small disadvantaged business, and women-owned small
business concerns will have the maximum practicable opportunity
to participate in contract performance consistent with its efficient
8(a) Program (see also FAR Subpart 19.8)
8(a) of the Small Business Act authorizes the SBA to enter into
contracts with other Federal government agencies to supply needed
goods and services. The SBA in turn subcontracts the actual performance
of the work to small businesses enrolled in the SBA's 8(a) Program.
The goal of the 8(a) Program is to help eligible small disadvantaged
firms become independently competitive for Federal contracts.
selection of an 8(a) subcontractor may be made on a sole source
or competitive basis. Contracts under $3 million ($5 million for
construction contracts) are normally awarded on a sole source basis.
Contracts in excess of $3 million must be competed among 8(a) firms.
HUD has executed a memorandum of understanding with the SBA, which
allows it to directly award 8(a) contracts to 8(a) firms. This helps
speed up the award of these contracts.
be eligible for 8(a) Program participation, a small business must
be at least 51 percent owned, controlled and daily operated by one
or more socially and economically disadvantaged persons.
"Socially disadvantaged" individuals are those
who have been subject to racial or ethnic prejudice or cultural
bias because of their identification as members of certain groups.
Black Americans, Native Americans, Hispanic Americans, Asian-Pacific
Americans and Asian-Indian Americans have been officially designated
as socially disadvantaged. Members of other groups must show proof
of their socially disadvantaged status.
"Economically disadvantaged" individuals are
socially disadvantaged individuals (as defined above) whose ability
to compete in the free enterprise system has been impaired due
to diminished capital and credit opportunities. Economically disadvantaged
must be established for all applicants. The SBA determines eligibility
on a case-by-case basis.
applications for the 8(a) Program must be made directly to the SBA.
If you are interested in the program, contact your nearest SBA office
or a HUD Business Utilization
Small Business Program (see also FAR Subpart 19.9)
Order 12138 ("National Women's Business Enterprise Policy") directs
all Federal agencies to take action to strengthen women-owned business
enterprise and to ensure full participation by women in the free
enterprise system. The Executive Order does not permit HUD to set-aside
procurements for women-owned businesses. HUD makes special efforts,
though, to advise women business owners of contracting opportunities
and to encourage their participation in HUD procurements. The FAR
requires Federal agencies to actively encourage their prime contractors
to use women-owned small businesses as subcontractors. All contracts
valued at $100,000 or more include a clause, which requires the
prime contractor to provide the maximum practicable opportunity
to women-owned small businesses to compete for subcontracts.
small business concern is defined as at least 51 percent owned by
one or more women, or in the case of publicly owned businesses,
at least 51 percent of the stock is owned by one or more women,
and the management and daily operations of which are controlled
by one or more women.
Disadvantaged Business Participation Program (See FAR Subparts 19.11
also encourages the award of prime contracts valued at $100,000
or more to small disadvantaged business (SDB) concerns (other than
certified 8(a) firms) that are at least 51 percent owned and controlled
by socially and economically disadvantaged individuals. As a means
of ensuring SDBs the maximum practicable opportunity to compete
for and receive Federal contracts, small businesses certified as
SDBs can receive a price preference (currently 10%) or evaluation
credit when competing for certain procurements. The Department of
Commerce determines which industrial categories are eligible for
the SDB contract price preference and evaluation credits. Businesses
seeking certification, as SDBs, should contact the SBA for more
Underutilized Business Zone (HUBZone) Program (see also FAR Subpart
by the HUBZone Act of 1997, Title VI of Public Law 105135, this
program provides Federal contracting opportunities for certain qualified
small business concerns located in economically distressed communities.
The goal of the HUBZone Program is to provide federal contracting
assistance for qualified small business concerns located in HUBZone
areas in order to increase employment opportunities, stimulate capital
investments in those areas, and empower communities through economic
leveraging. HUBZone areas are determined by various census data.
To qualify as a HUBZone business, the business must be small, owned
by a US citizen and have its principal office located in a HUBZone.
At least 35% of the employees must reside in a HUBZone. The SBA
formally certifies firms as HUBZone businesses. HUBZone businesses
can receive sole-source or set-aside federal contracts, or receive
a price preference up to 10% when competing for full and open competition
procurements. In addition to the Government-wide prime contracting
goals established by the SBA, HUD establishes annual goals for subcontracting
with HUBZone businesses.
Small Business Program
accordance with Title V of Public Law 106-50, the Veterans Entrepreneurship
and Small Business Development Act of 1999, HUD establishes annual
Departmental goals for prime contracts with small businesses owned
and controlled by service-disabled veterans. HUD also establishes
annual goals for subcontracting by its prime contractors with veteran-owned
and service-disabled veteran-owned small businesses.
Business Enterprise (MBE) Programs
accordance with Executive Orders 12432, "Minority Business Enterprise
Development," and 11625, "National Program for Minority Business
Enterprise," OSDBU is charged with overseeing the implementation
of voluntary compliance programs to stimulate MBE participation
in procurement and assistance programs. OSDBU provides advice and
recommendations to the Secretary of HUD on MBE activities, prepares,
monitors and evaluates the Department's Annual Minority Business
Development Plan and reports MBE program performance to the Minority
Business Development Agency (MBDA) of the Department of Commerce.
is committed to the use of minority-owned media to the extent practical
and cost effective. The Department buys advertising for HUD's programs
(e.g., Fair Housing billboard displays, Housing's Real Estate Owned
property sales and Section 202 Housing for the Elderly). The total
expenditures for advertising under these activities and the portion
of total dollars spent with the minority media is reported semi-annually
to OSDBU. OSDBU is responsible for monitoring HUD's procurement
of minority media services.