[Congressional Record Volume 168, Number 97 (Tuesday, June 7, 2022)]
[House]
[Pages H5252-H5253]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     HUBZONE PRICE EVALUATION PREFERENCE CLARIFICATION ACT OF 2021

  Ms. VELAZQUEZ. Madam Speaker, I move to suspend the rules and pass 
the bill (H.R. 5879) to amend the Small Business Act to clarify the 
application of the price evaluation preference for qualified HUBZone 
small business concerns to certain contracts, and for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 5879

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Hubzone Price Evaluation 
     Preference Clarification Act of 2021''.

     SEC. 2. APPLICATION OF PRICE EVALUATION PREFERENCE FOR 
                   QUALIFIED HUBZONE SMALL BUSINESS CONCERNS TO 
                   CERTAIN CONTRACTS.

       (a) In General.--Section 31(c)(3) of the Small Business Act 
     (15 U.S.C. 657a(c)(3)) is amended by adding at the end the 
     following new subparagraph:
       ``(E) Application to certain contracts.--The requirements 
     of subparagraph (A) shall apply to an unrestricted order 
     issued under an unrestricted multiple award contract or the 
     unrestricted portion of a contract that is partially set 
     aside for competition restricted to small business 
     concerns.''.
       (b) Rulemaking.--Not later than 90 days after the date of 
     the enactment of this section, the Administrator of the Small 
     Business Administration shall revise any rule or guidance to 
     implement the requirements of this section.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
New York (Ms. Velazquez) and the gentleman from Missouri (Mr. 
Luetkemeyer) each will control 20 minutes.
  The Chair recognizes the gentlewoman from New York.


                             General Leave

  Ms. VELAZQUEZ. Madam Speaker, I ask unanimous consent that all 
Members may have 5 legislative days in which to revise and extend their 
remarks and include extraneous material on the measure under 
consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from New York?
  There was no objection.
  Ms. VELAZQUEZ. Madam Speaker, I yield myself such time as I may 
consume.
  Madam Speaker, I rise today in support of H.R. 5879, the HUBZone 
Price Evaluation Preference Clarification Act of 2021.
  The HUBZone program is a contracting assistance program based on 
locality. It helps small businesses in urban and rural communities gain 
preferential access to Federal procurement opportunities. By ensuring 
that small businesses in disadvantaged communities participate in the 
Federal marketplace, it, in turn, boosts job creation and economic 
growth.
  One of the main incentives of the HUBZone program is the price 
evaluation preference. This tool gives a slight competitive advantage 
to HUBZone firms competing against large companies. In doing so, it 
meets the objectives of the program because every contract awarded to a 
qualified HUBZone firm is an opportunity for developing and uplifting 
America's most distressed communities.
  Unfortunately, this tool is not being used as often as it should be 
due to agencies misinterpreting that it does not apply to orders. There 
is nothing in the Small Business Act that excludes the price evaluation 
preference from being used at the ordering level, and it is our 
intention that it be used at that level.
  Given the prevalence of government-wide and agency-wide vehicles, it 
is now necessary to state in clear and unequivocal terms that the price 
evaluation preference does apply to orders. This is precisely the goal 
of H.R. 5879. With this clarification, this legislation incentivizes 
the use of this important tool so that one day we can finally meet the 
3 percent HUBZone contracting goal and, ultimately, bring economic 
development to those communities that need it the most.
  I thank Representatives Newman and Salazar for leading this effort, 
which will bolster the HUBZone program.
  Madam Speaker, I urge Members to support this legislation, and I 
reserve the balance of my time.
  Mr. LUETKEMEYER. Madam Speaker, I ask unanimous consent that the 
gentleman from Texas (Mr. Williams) be allowed to manage the remainder 
of the time for the minority.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Missouri?
  There was no objection.
  Mr. WILLIAMS of Texas. Madam Speaker, I yield myself such time as I 
may consume, and I rise in support of H.R. 5879, the HUBZone Price 
Evaluation Preference Clarification Act of 2021.
  The SBA's contracting programs deliver for this Nation's smallest 
businesses and the country's smallest contractors. Unfortunately, 
consolidation with all of the Federal Government's contracting programs 
continues to be problematic. Our committee has examined many of these 
programs and has offered solutions that would deliver change.
  H.R. 5879 takes important steps within the HUBZone program and 
ensures that the 10 percent price preference is available on all task 
orders within large multiple award contracts.
  I thank the gentlewoman from Illinois (Ms. Newman) and the 
gentlewoman from Florida (Ms. Salazar),

[[Page H5253]]

the ranking member of the Subcommittee on Contracting and 
Infrastructure, for working in a collaborative manner to address the 
HUBZone program. Bills like this have the ability to make a difference 
within Federal contracting, and I commend the Chair for bringing this 
bill forward.
  I urge my colleagues to support H.R. 5879, and I reserve the balance 
of my time.
  Ms. VELAZQUEZ. Madam Speaker, I yield 2 minutes to the gentlewoman 
from Illinois (Ms. Newman).
  Ms. NEWMAN. Madam Speaker, I thank Chairwoman Velazquez for all her 
great work on the Small Business Committee.
  I rise in strong support of my bipartisan bill, the HUBZone Price 
Evaluation Preference Clarification Act. This legislation is designed 
to expand contracting opportunities to millions of small businesses 
located in historically underutilized business zones.
  More specifically, it would clarify the program's price evaluation 
language to ensure adequate spending toward HUBZone small businesses, 
giving more communities the resources they need to build vibrantly. We 
must ensure that small business in every community is and can benefit 
from Federal contracting.
  By passing this legislation, we will take a crucial step toward a 
more equitable distribution of resources to small businesses throughout 
our country. I urge my colleagues to vote in favor of this legislation.
  Mr. WILLIAMS of Texas. Madam Speaker, I reserve the balance of my 
time.
  Ms. VELAZQUEZ. Madam Speaker, I have no further speakers, and I am 
prepared to close. I reserve the balance of my time.
  Mr. WILLIAMS of Texas. Madam Speaker, I yield myself such time as I 
may consume.
  Federal contracting remains a significant endeavor for many of the 
Nation's small businesses. H.R. 5879 ensures one of these programs, the 
HUBZone program, is ready to assist small business contractors. This 
legislation, which passed favorably out of committee by a voice vote, 
will level the playing field within the program.
  I thank the Chair for bringing this legislation through regular 
order, and I thank the sponsor and cosponsor for working to address 
these issues. I urge my colleagues to support the bill, and I yield 
back the balance of my time.
  Ms. VELAZQUEZ. Madam Speaker, I yield myself such time as I may 
consume.
  The statutory goal of awarding 3 percent of all prime Federal 
contracts to HUBZone firms has never been met. H.R. 5879 will enable 
agencies to better meet this goal by eliminating all ambiguity and 
clarifying that the HUBZone price evaluation preference applies to 
orders.
  I commend the gentlewoman from Illinois (Ms. Newman), the sponsor of 
the bill, and the gentlewoman from Florida (Ms. Salazar), the 
cosponsor, for working together on this sensible piece of legislation. 
H.R. 5879 will undoubtedly strengthen the HUBZone program which, in 
turn, will create jobs and stimulate local economies across the Nation.
  I urge my colleagues to vote ``yes,'' and I yield back the balance of 
my time.
  Ms. JACKSON LEE. Madam Speaker, I rise to speak in support of H.R. 
5879 ``Hubzone Price Evaluation Preference Clarification Act''.
  The Small Business Act is instrumental in allowing small businesses 
to remain competitive amid complex markets.
  Small businesses are the engine of our economy and exist as the 
backbone of local communities across the nation. They are essential 
contributors to our society, as we must support their growth and 
progress.
  The Hubzone program supports small businesses that are part of 
historically underutilized business zones. These zones are low-income 
communities that have increased levels of poverty and high unemployment 
rates.
  The program works to target inequities that make it at times 
difficult for small businesses within these economically distressed 
communities to compete.
  Within the Small Business Act, preferential price evaluations are 
given to small businesses participating in the Hubzone program.
  Price evaluation preferences ensure that a price offered by a 
qualified Hubzone small business entity is deemed lower than the price 
offered by another offeror if the qualified Hubzone business's price is 
not more than 10 percent higher than the price offered by the otherwise 
lowest offeror.
  These price evaluation preferences are a key feature which allow 
Hubzone contracts to act as an economic boost for small businesses 
within high unemployment and low-income areas.
  These price evaluation preferences help level the playing field for 
small businesses that are often minority-owned. In Houston alone, 
nearly 35 percent of small businesses are minority-owned.
  The Hubzone program gives these businesses a chance to compete in 
competitive markets. In the wake of the COVID-19 pandemic, these small 
businesses need institutional support more than ever.
  H.R. 5879 is necessary to clarify how small businesses can be 
eligible for price evaluation preferences outlined in the Small 
Business Act.
  The number of Hubzone locations, or areas with historically 
underutilized business zones, has nearly doubled in the past 20 years 
according to the Small Business Administration.
  Small businesses and the communities they benefit depend on the 
success of the Hubzone program. It is vital to detail how small 
businesses can receive benefits from the program.
  I ask my colleagues to join me in voting for passage of H.R. 5879.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from New York (Ms. Velazquez) that the House suspend the 
rules and pass the bill, H.R. 5879.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. ROY. Madam Speaker, on that I demand the yeas and nays.
  The SPEAKER pro tempore. Pursuant to section 3(s) of House Resolution 
8, the yeas and nays are ordered.
  Pursuant to clause 8 of rule XX, further proceedings on this motion 
are postponed.

                          ____________________