[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR126.613]

[Page 425]
 
                TITLE 13--BUSINESS CREDIT AND ASSISTANCE
 
                CHAPTER I--SMALL BUSINESS ADMINISTRATION
 
PART 126--HUBZONE PROGRAM--Table of Contents
 
                    Subpart F--Contractual Assistance
 
Sec. 126.613  How does a price evaluation preference affect the bid of a qualified HUBZone SBC in full and open competition?

    Where a contracting officer will award a contract on the basis of 
full and open competition, the contracting officer must deem the price 
offered by a qualified HUBZone SBC to be lower than the price offered by 
another offeror (other than another small business concern) if the price 
offered by the qualified HUBZone SBC is not more than 10 percent higher 
than the price offered by the otherwise lowest, responsive, and 
responsible offeror.

    Example: In a full and open competition, a qualified HUBZone SBC 
submits an offer of $98; another small business concern submits an offer 
of $100; and a large business submits an offer of $93. The lowest, 
responsive, responsible offeror would be the large business. However, 
the contracting officer must apply the HUBZone price evaluation 
preference. If the qualified HUBZone SBC's offer is not more than 10 
percent higher than the large business's offer, the contracting officer 
must deem the qualified HUBZone SBC's price as lower than the price of 
the large business. In this example, the qualified HUBZone SBC's price 
is not more than 10 percent higher than the large business's price and, 
consequently, the qualified HUBZone SBC displaces the large business as 
the lowest, responsive, and responsible offeror. If the HUBZone SBC 
offer were $101, the award would go to the large business at $93. If the 
HUBZone SBC will not benefit from the preference, the preference is not 
applied to change an offer.