[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR126.614]

[Page 463]
 
                TITLE 13--BUSINESS CREDIT AND ASSISTANCE
 
                CHAPTER I--SMALL BUSINESS ADMINISTRATION
 
PART 126_HUBZONE PROGRAM--Table of Contents
 
                    Subpart F_Contractual Assistance
 
Sec.  126.614  How does a CO apply HUBZone and SDB price evaluation 

preferences in full and open competition?

    A CO may receive offers from both qualified HUBZone SBCs and SDB 
concerns, or from concerns that qualify as both, during a full and open 
competition. The CO must first apply the SDB price evaluation preference 
described in 10 U.S.C. 2323 to all appropriate offerors. The CO must 
then apply the HUBZone price evaluation preference as described in Sec.  
126.613 to all appropriate offerors. A concern that is both a qualified 
HUBZone SBC and an SDB must receive the benefit of both the HUBZone 
price evaluation preference described in Sec.  126.613 and the SDB price 
evaluation preference described in 10 U.S.C. 2323 and the Federal 
Acquisition Streamlining Act, section 7102(a)(1)(B), Public Law 103-355, 
in a full and open competition.

    Example 1: In a full and open competition, a qualified HUBZone SBC 
(but not an SDB) submits an offer of $102; an SDB (but not a qualified 
HUBZone SBC) submits an offer of $107; and a large business submits an 
offer of $93. The CO first applies the SDB price evaluation preference 
and adds 10% to the qualified HUBZone SBC's offer thereby making that 
offer $112.2, and to the large business's offer thereby making that 
offer $102.3. As a result, the large business is the lowest, responsive, 
and responsible offeror. Next, the CO applies the HUBZone preference 
and, since the qualified HUBZone SBC's offer is not more than 10% higher 
than the large business's offer, the CO must deem the price offered by 
the qualified HUBZone SBC to be lower than the price offered by the 
large business.
    Example 2: A qualified HUBZone SBC (but not an SDB) submits an offer 
of $102; a qualified HUBZone SBC that is also an SDB submits an offer of 
$105; an SDB (but not a qualified HUBZone SBC) submits an offer of $107; 
a small business concern (but not a qualified HUBZone SBC or an SDB) 
submits an offer of $100; and a large business submits an offer of $93. 
The CO must first apply the SDB price evaluation preference to establish 
the lowest, responsive, and responsible offeror. Thus, the qualified 
HUBZone SBC's offer becomes $112.2; the qualified HUBZone SBC/SDB's 
offer remains $105; the SDB's offer remains $107; the small business 
concern's offer becomes $110; and the large business's offer becomes 
$102.3. As a result of the SDB price evaluation preference, the large 
business is the lowest, responsive, and responsible offeror. Next, the 
CO must apply the HUBZone price evaluation preference and if a qualified 
HUBZone SBC's price is not more than 10% higher than the large 
business's price, the CO must deem its price to be lower than the large 
business's price. In this example, the qualified HUBZone price of $112.2 
is not more than 10% higher than the large business's price, however, 
the qualified HUBZone/SDB's price of $105 is also not more than 10% 
higher than the large business's price and is lower than the qualified 
HUBZone SBC's price. Consequently, the CO must deem the price of the 
qualified HUBZone/SDB as the lowest, responsive, and responsible 
offeror.

[69 FR 29426, May 24, 2004]