PrimeRFP SCOUT · Federal Set-Aside Program
HUBZone (Historically Underutilized Business Zone) (HUBZone)
Federal contracts reserved for small businesses in economically disadvantaged HUBZone areas — a niche program with a 3% goal and 10% price evaluation preference.
$684M
TTM Obligated
0.09%
% of Federal (TTM)
1,452
Awards ≥$100K
DoD
Top Agency
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What is HUBZone (Historically Underutilized Business Zone)?
Federal contracts reserved for small businesses in economically disadvantaged HUBZone areas — a niche program with a 3% goal and 10% price evaluation preference.
Certification Process
Register with SBA's HUBZone Program, prove 51%+ ownership by HUBZone resident(s), have principal place of business in designated HUBZone, meet small business size standards, and obtain SBA HUBZone certification online. Approval takes 3-5 weeks.
Business Development Strategy
HUBZone reached 2.66% of eligible contracting in FY2025 — still short of the 3% goal, but up from the FY2024 share. SBA did not publish a HUBZone dollar total; ~$17B is derived from 2.66% of the ~$639B eligible prime base. The 10% price preference remains the key competitive edge.
Top Agencies Buying HUBZone (Historically Underutilized Business Zone)
| Rank | Agency | SCOUT TTM |
|---|---|---|
| #1 | Department of Defense | $300M |
| #2 | Department of Homeland Security | $117M |
| #3 | Department of Labor | $66M |
| #4 | Department of Transportation | $38M |
Designated HUBZone set-aside obligations · Aug 2025 – Aug 2026
Market Opportunity
Current designated market (SCOUT TTM)
$684M
0.09% of federal TTM · 1,452 awards ≥$100K
Momentum inside the window
CY2025 $0.4B → CY2026 (partial) $0.3B
Calendar buckets from the same TTM extract — not full fiscal years
Official annual picture (SBA)
~$17B · ~3% CAGR ↑
FY2025 Procurement Scorecard
Frequently Asked Questions
What qualifies as a HUBZone and who can participate?
A HUBZone is a federally-designated economically disadvantaged area (rural, base closure, or Indian reservation). Your business must have principal place of business in a HUBZone and be 51%+ owned/controlled by HUBZone resident(s). Check SBA.gov/hubzone for designated zones.
What is the 10% price preference for HUBZone?
In competitive federal procurements, HUBZone-certified firms receive a 10% price evaluation preference — meaning a HUBZone bid can be up to 10% higher and still be competitive. This significantly improves win rates on competitive work.
How is HUBZone different from other small business set-asides?
HUBZone is smaller (~$17B derived, 2.66% of eligible spend in FY2025 — below the 3% goal) but offers a unique 10% price preference in competitive bids. That geographic preference is the main differentiator versus 8(a), SDVOSB, and WOSB.
SCOUT figures mark designated HUBZone set-aside obligations from USASpending (≥ $100,000 · obligations_only) for Aug 2025 – Aug 2026. Share of federal uses the same TTM denominator ($787B). Distinct from the SBA scorecard annual context above.
SCOUT Signal
August 2026
One VA health contract was 35% of civilian federal obligations in July.
Meanwhile VA's service-disabled veteran-owned contract actions fell 41.8%. The same agency, the same month, the large-vendor lane expanding while the small-business lane contracted. Figures are civilian-agency obligations through 2026-07-31; DoD FPDS for this window is labeled incomplete.
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