Bill Overview
Title: Hubzone Price Evaluation Preference Clarification Act of 2021
Description: This bill revises the standards applicable to small businesses participating in the HUBZone program, a Small Business Administration program that provides federal contracting assistance to small business concerns. Specifically, the bill revises the circumstances under which a small business concern is granted certain price evaluation preferences.
Sponsors: Rep. Newman, Marie [D-IL-3]
Target Audience
Population: Small businesses eligible or in competition with HUBZone program participants
Estimated Size: 31700000
- The HUBZone program is designed to help small businesses in historically underutilized business zones gain preferential access to federal procurement opportunities.
- There are approximately 31.7 million small businesses in the United States, according to the U.S. Small Business Administration.
- Not all small businesses are in HUBZones, but a subset will be affected by changes in policies regarding price evaluation preferences.
- The changes could affect businesses that are either currently part of the HUBZone program, those wishing to join, or those that might be affected by the competition changes stemming from amended preferences.
Reasoning
- HUBZone businesses are located in historically underutilized business zones, which means they often face greater economic challenges.
- These businesses can significantly benefit from policies providing price evaluation preferences in federal contracting.
- Small businesses not in these zones might face increased competition for federal contracts, potentially affecting their revenue.
- The policy will likely have a varied impact, improving the wellbeing for some while potentially challenging those who face new competition.
- The budget constraints imply that while the overall impact must be significant enough to justify expenditure, only a portion of eligible businesses will directly experience the changes.
Simulated Interviews
Small Business Owner (Detroit, MI)
Age: 45 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- The program is important for communities like mine.
- I think the price evaluation preference change could help us win more contracts.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Small Business Owner (New York, NY)
Age: 30 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- I'm worried about losing contracts to companies in HUBZones.
- We might need to lower our bids even more.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 6 | 7 |
| Year 20 | 6 | 7 |
Federal Contracting Officer (Phoenix, AZ)
Age: 50 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 2/20
Statement of Opinion:
- This policy will improve fairness in contracting.
- It will help us support businesses with genuine needs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Small Business Owner (Rural Alabama)
Age: 60 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 15.0 years
Commonness: 3/20
Statement of Opinion:
- We need every bit of help we can get against bigger firms.
- The changes should help level the playing field.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 8 | 4 |
| Year 20 | 8 | 4 |
Policy Analyst (San Francisco, CA)
Age: 65 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 1/20
Statement of Opinion:
- I believe this is a positive step for economic equality.
- The policy may have localized but significant benefits.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Entrepreneur (Chicago, IL)
Age: 25 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- The HUBZone program seems crucial for new businesses.
- I hope these preferences make it easier to start off strong.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Small Business Consultant (Houston, TX)
Age: 55 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 2/20
Statement of Opinion:
- Some clients might struggle, others will thrive with these changes.
- The implications are varied, but generally positive.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Small Business Owner (Appalachia, WV)
Age: 40 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 4/20
Statement of Opinion:
- The policy might indirectly affect us through supply chains.
- I'm neutral but hopeful for economic improvement overall.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Contractor (Jacksonville, FL)
Age: 38 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- The policy may make it harder to secure projects.
- We'll have to sharpen our bids.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 4 | 5 |
| Year 3 | 4 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Small Business Owner (Baltimore, MD)
Age: 48 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- This could increase investment in our area.
- We might start catering to local federal offices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Cost Estimates
Year 1: $12000000 (Low: $8000000, High: $16000000)
Year 2: $12000000 (Low: $8000000, High: $16000000)
Year 3: $12000000 (Low: $8000000, High: $16000000)
Year 5: $12000000 (Low: $8000000, High: $16000000)
Year 10: $12000000 (Low: $8000000, High: $16000000)
Year 100: $12000000 (Low: $8000000, High: $16000000)
Key Considerations
- Implementation costs for revising procurement systems to accommodate changes in HUBZone preferences.
- Potential need for training procurement officials on new standards and practices, influencing initial costs.
- Possible bid protests or procurement delays as adjustments to the program are negotiated in practice.