Medium RiskFARSmall Business

52.219-4Notice of Price Evaluation Preference for HUBZone Small Business Concerns.

Researched by the BidStride Research Team

What This Clause Requires

FAR 52.219-4 — Notice of Price Evaluation Preference for HUBZone Small Business Concerns.. This clause is part of the Federal Acquisition Regulation and may be included in government contracts as a solicitation provision or contract clause.

Official Regulation Text

52.219-4 Notice of Price Evaluation Preference for HUBZone Small Business Concerns. As prescribed in 19.1309(b), insert the following clause: Notice of Price Evaluation Preference for HUBZone Small Business Concerns (OCT 2022) (a) Evaluation preference. (1) Offers will be evaluated by adding a factor of 10 percent to the price of all offers, except— (i) Offers from HUBZone small business concerns that have not waived the evaluation preference; and (ii) Otherwise successful offers from small business concerns. (2) The factor of 10 percent shall be applied on a line item basis or to any group of items on which award may be made. Other evaluation factors described in the solicitation shall be applied before application of the factor. (3) When the two highest rated offerors are a HUBZone small business concern and a large business, and the evaluated offer of the HUBZone small business concern is equal to the evaluated offer of the large business after considering the price evaluation preference, award will be made to the HUBZone small business concern. (b) Waiver of evaluation preference. A HUBZone small business concern may elect to waive the evaluation preference, in which case the factor will be added to its offer for evaluation purposes. □ Offeror elects to waive the evaluation preference. (c) Joint venture. A HUBZone joint venture agrees that, in the performance of the contract, at least 40 percent of the aggregate work performed by the joint venture shall be completed by the HUBZone small business parties to the joint venture. Work performed by the HUBZone small business parties to the joint venture must be more than administrative functions. (End of clause) [63 FR 70275, Dec. 18, 1998, as amended at 69 FR 59704, Oct. 5, 2004; 70 FR 33661, June 8, 2005; 75 FR 77732, Dec. 13, 2010; 79 FR 61753, Oct. 14, 2014; 85 FR 11770, Feb. 27, 2020; 86 FR 44245, Aug. 11, 2021; 87 FR 58226, 58237, Sept. 23, 2022]

Source: eCFR, 48 CFR 52.219-4 (https://www.ecfr.gov/current/title-48/section-52.219-4)

Compliance Checklist

  • (2) The factor of 10 percent shall be applied on a line item basis or to any group of items on which award may be made.
  • Other evaluation factors described in the solicitation shall be applied before application of the factor.
  • A HUBZone joint venture agrees that, in the performance of the contract, at least 40 percent of the aggregate work performed by the joint venture shall be completed by the HUBZone small business parties to the joint venture.
  • Work performed by the HUBZone small business parties to the joint venture must be more than administrative functions.

Flow-Down to Subcontractors

No flow-down required

This clause applies only to the prime contract and does not need to be flowed down to subcontractors.

Frequently Asked Questions

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This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.