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Agencies Shun Contract Set-Asides for Disadvantaged Areas

Source: Bgov

A contracting program designed to give certain disadvantaged businesses a chance at federal dollars suffers from a lack of agency incentives and program requirements. As such, agencies tend to favor other set-aside programs, contractors say.

The Historically Underutilized Business Zone program, also known as HUBZone, was created by Congress in 1997 to provide small businesses located in economically distressed areas with greater access to federal contracting opportunities. Since the program’s inception, the government has been unable to reach its goals—at least 3% of prime contracts and subcontracts to be awarded to qualified HUBZone small business.

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