Socioeconomic

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Socioeconomic Essay
To help facilitate the growth of small businesses Federal Government procurement requires their Contracting Officers to comply with applicable socioeconomic laws and regulations that do not apply to commercial contracting. The socioeconomic goals set forth by these laws, which pertain only to federal contracting and are integrated into the FAR, ensure there is constant economic growth for the U.S economy as well. These goals consist of making awards to what is considered, set-aside programs, and includes small businesses participating in the 8(a) Business Development Program, Historically Underutilized Business Zones (HUBZone) Program, Service-Disabled Veteran-Owned Small Business (SDVOSB) Program, or the Women-Owned …show more content…

(SBA, 2013) The advantages of the HUBZone program are for one, it helps businesses obtain federal contacts that are located within urban and rural areas. These areas are considered to be underdeveloped and underprivileged which allows small businesses to generate job growth in these specific areas. One of the key aspects of the program is the mere fact that 35% of the employees must reside within these specific areas which aids in decreasing unemployment rates for these locations. Contracts generated by the HUBZone program offers long term employment goals for many of the employees since often times, according to O’Connor and Wangemann (2009), some government contracts can last upwards to ten years or longer depending on the conditions outlined in the FAR. Another advantage of the HUBZone program, according to the Small Business Association, is under full and open contract competition small businesses will be given a 10 percent price evaluation preference. This allows HUBZone businesses a better chance at securing a contract since 10 percent will be added to the prices of nonparticipants of the HUBZone program as a condition of the price evaluation. Lastly, small businesses certified under this program can be awarded contracts competitively or under sole source contracting. Under sole source contracting, contracts are awarded after only negotiating with one source, making it

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