Small business concerns that are located in and hire from historically underutilized business zones or HUBZones may qualify for procurement preferences. Qualified small business concerns trying to claim HUBZone status must first apply and be certified by the Small Business Administration (SBA). HUBZone information can be found at HUBZone program. The federal government can also limit the competition on certain contracts to women-owned small business (WOSB) or economically disadvantaged women-owned small business (EDWOSB). See Women-Owned Small Business Federal Contracting program. Several other federal procurement programs exist for small businesses. These programs address the areas of contractor responsibility, innovation research, technology, and business development. Federal contracting officers must purchase goods and services from responsible contractors, meaning that the contractor has the capability, capacity, integrity, and financial resources to perform the contract. If a contracting officer proposes to reject the offer of a small business firm which is a low offeror because of questions related to the firm’s ability to perform the contract on any of the above grounds, the case is referred to the SBA for a possible Certificate of Competency (COC). If the business demonstrates the ability to perform, the SBA issues a COC to the contracting officer requiring the award of that specific contract to the small business. Under the Small Business Innovation Research (SBIR) Program, federal agencies having research and development budgets in excess of $100 million set aside a percent for awards to small high-technology firms. The SBIR program is discussed in the Procurement / Purchasing / Certification / Other Assistance section of the Resource Directory of this Guide. Under the Small Business Technology Transfer Program (STTR) federal agencies having annual research and development budgets of more than $1 billion will set aside a percentage for awards to small high-technology firms that collaborate with nonprofit research institutions. The 8(a) Business Development Program is designed to provide business assistance and training to help socially, and economically disadvantaged citizens gain access to the economic mainstream. This nine-year program, consisting of a four-year developmental stage and a five-year transition stage, provides specialized business training, counseling and the ability to obtain contracts through sole-source and restricted competition procedures. To learn more about the 8(a) BD program including eligibility requirements, application procedures and to access the online 8(a) BD application visit the site. Micro-purchases (government purchases at or below $3,000) are made using the simplest and most direct buying technique. Micro-purchases may be made by telephone, over the counter, by Internet transactions, or other means of electronic communication. These purchases are made by credit card. The credit card holders are generally outside of the purchasing department. Simplified acquisition procedures apply to procurement with an estimated value of $150,000 and below. As mentioned above, procurement valued between $3,500 and $150,000 are reserved exclusively for small businesses. Simplified acquisitions are made using oral or written solicitations along with commercial cards or electronic purchasing techniques.
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