[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: 13CFR126.700]

[Page 426]
 
                TITLE 13--BUSINESS CREDIT AND ASSISTANCE
 
                CHAPTER I--SMALL BUSINESS ADMINISTRATION
 
PART 126--HUBZONE PROGRAM--Table of Contents
 
              Subpart G--Contract Performance Requirements
 
Sec. 126.700  What are the subcontracting percentages requirements under this program?


    (a) Subcontracting percentage requirements. A qualified HUBZone SBC 
prime contractor can subcontract part of a HUBZone contract provided:
    (1) In the case of a contract for services (except construction), 
the qualified HUBZone SBC spends at least 50 percent of the cost of the 
contract performance incurred for personnel on the concern's employees 
or on the employees of other qualified HUBZone SBCs;
    (2) In the case of a contract for general construction, the 
qualified HUBZone SBC spends at least 15 percent of the cost of contract 
performance incurred for personnel on the concern's employees or the 
employees of other qualified HUBZone SBCs;
    (3) In the case of a contract for construction by special trade 
contractors, the qualified HUBZone SBC spends at least 25 percent of the 
cost of contract performance incurred for personnel on the concerns' 
employees or the employees of other qualified HUBZone SBCs; and
    (4) In the case of a contract for procurement of supplies (other 
than a procurement from a regular dealer in such supplies) the qualified 
HUBZone SBC spends at least 50 percent of the manufacturing cost 
(excluding the cost of materials) on performing the contract in a 
HUBZone. One or more qualified HUBZone SBCs may combine to meet this 
subcontracting percentage requirement.
    (b) Definitions. Many definitions applicable to this section can be 
found in Sec. 125.6 of this title.