Hubzone Price Evaluation Preference Clarification Act of 2021
Floor Speech
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Ms. VELAZQUEZ. Madam Speaker, I move to suspend the rules and pass the bill (H.R. 5879) to amend the Small Business Act to clarify the application of the price evaluation preference for qualified HUBZone small business concerns to certain contracts, and for other purposes.
The Clerk read the title of the bill.
The text of the bill is as follows: H.R. 5879
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE.
This Act may be cited as the ``Hubzone Price Evaluation Preference Clarification Act of 2021''. SEC. 2. APPLICATION OF PRICE EVALUATION PREFERENCE FOR QUALIFIED HUBZONE SMALL BUSINESS CONCERNS TO CERTAIN CONTRACTS.
(a) In General.--Section 31(c)(3) of the Small Business Act (15 U.S.C. 657a(c)(3)) is amended by adding at the end the following new subparagraph:
``(E) Application to certain contracts.--The requirements of subparagraph (A) shall apply to an unrestricted order issued under an unrestricted multiple award contract or the unrestricted portion of a contract that is partially set aside for competition restricted to small business concerns.''.
(b) Rulemaking.--Not later than 90 days after the date of the enactment of this section, the Administrator of the Small Business Administration shall revise any rule or guidance to implement the requirements of this section.
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Ms. VELAZQUEZ. Madam Speaker, I yield myself such time as I may consume.
Madam Speaker, I rise today in support of H.R. 5879, the HUBZone Price Evaluation Preference Clarification Act of 2021.
The HUBZone program is a contracting assistance program based on locality. It helps small businesses in urban and rural communities gain preferential access to Federal procurement opportunities. By ensuring that small businesses in disadvantaged communities participate in the Federal marketplace, it, in turn, boosts job creation and economic growth.
One of the main incentives of the HUBZone program is the price evaluation preference. This tool gives a slight competitive advantage to HUBZone firms competing against large companies. In doing so, it meets the objectives of the program because every contract awarded to a qualified HUBZone firm is an opportunity for developing and uplifting America's most distressed communities.
Unfortunately, this tool is not being used as often as it should be due to agencies misinterpreting that it does not apply to orders. There is nothing in the Small Business Act that excludes the price evaluation preference from being used at the ordering level, and it is our intention that it be used at that level.
Given the prevalence of government-wide and agency-wide vehicles, it is now necessary to state in clear and unequivocal terms that the price evaluation preference does apply to orders. This is precisely the goal of H.R. 5879. With this clarification, this legislation incentivizes the use of this important tool so that one day we can finally meet the 3 percent HUBZone contracting goal and, ultimately, bring economic development to those communities that need it the most.
I thank Representatives Newman and Salazar for leading this effort, which will bolster the HUBZone program.
Madam Speaker, I urge Members to support this legislation, and I reserve the balance of my time.
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Ms. VELAZQUEZ. Madam Speaker, I yield 2 minutes to the gentlewoman from Illinois (Ms. Newman).
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Ms. VELAZQUEZ. Madam Speaker, I have no further speakers, and I am prepared to close.
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Ms. VELAZQUEZ. Madam Speaker, I yield myself such time as I may consume.
The statutory goal of awarding 3 percent of all prime Federal contracts to HUBZone firms has never been met. H.R. 5879 will enable agencies to better meet this goal by eliminating all ambiguity and clarifying that the HUBZone price evaluation preference applies to orders.
I commend the gentlewoman from Illinois (Ms. Newman), the sponsor of the bill, and the gentlewoman from Florida (Ms. Salazar), the cosponsor, for working together on this sensible piece of legislation. H.R. 5879 will undoubtedly strengthen the HUBZone program which, in turn, will create jobs and stimulate local economies across the Nation.
I urge my colleagues to vote ``yes,'' and I yield back the balance of my time.
Ms. JACKSON LEE. Madam Speaker, I rise to speak in support of H.R. 5879 ``Hubzone Price Evaluation Preference Clarification Act''.
The Small Business Act is instrumental in allowing small businesses to remain competitive amid complex markets.
Small businesses are the engine of our economy and exist as the backbone of local communities across the nation. They are essential contributors to our society, as we must support their growth and progress.
The Hubzone program supports small businesses that are part of historically underutilized business zones. These zones are low-income communities that have increased levels of poverty and high unemployment rates.
The program works to target inequities that make it at times difficult for small businesses within these economically distressed communities to compete.
Within the Small Business Act, preferential price evaluations are given to small businesses participating in the Hubzone program.
Price evaluation preferences ensure that a price offered by a qualified Hubzone small business entity is deemed lower than the price offered by another offeror if the qualified Hubzone business's price is not more than 10 percent higher than the price offered by the otherwise lowest offeror.
These price evaluation preferences are a key feature which allow Hubzone contracts to act as an economic boost for small businesses within high unemployment and low-income areas.
These price evaluation preferences help level the playing field for small businesses that are often minority-owned. In Houston alone, nearly 35 percent of small businesses are minority-owned.
The Hubzone program gives these businesses a chance to compete in competitive markets. In the wake of the COVID-19 pandemic, these small businesses need institutional support more than ever.
H.R. 5879 is necessary to clarify how small businesses can be eligible for price evaluation preferences outlined in the Small Business Act.
The number of Hubzone locations, or areas with historically underutilized business zones, has nearly doubled in the past 20 years according to the Small Business Administration.
Small businesses and the communities they benefit depend on the success of the Hubzone program. It is vital to detail how small businesses can receive benefits from the program.
I ask my colleagues to join me in voting for passage of H.R. 5879.
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