SBA 8(a), SDVOSB & HUBZone Flashcards
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Read the first 7 SBA 8(a), SDVOSB & HUBZone flashcards as text
Which of the following disqualifies a firm from the HUBZone program even if all other requirements are met?
Answer: Being a publicly traded company
HUBZone firms must be small businesses, and publicly traded companies are generally ineligible because they cannot satisfy the unconditional ownership and control requirements.
An 8(a) firm wants to subcontract more than 50% of a contract to a non-8(a) firm. What is the likely result?
Answer: The firm violates the performance-of-work/subcontracting limitations
8(a) contractors must comply with subcontracting limitations that require performing a certain percentage of work in-house, and excessive subcontracting can result in program sanctions.
What is the competitive threshold above which an 8(a) contract in a NAICS code must be competed among 8(a) participants rather than awarded sole-source?
Answer: $4.5 million for non-manufacturing, $22 million for manufacturing
Contracts exceeding $4.5 million (non-manufacturing) or $22 million (manufacturing) must be competed among 8(a) firms rather than awarded sole-source.
A contracting officer wants to reserve a contract for SDVOSB firms. Which condition must exist under the 'Rule of Two'?
Answer: At least two SDVOSB firms are expected to submit offers at a fair and reasonable price
Under the Rule of Two, a contracting officer sets aside a contract for SDVOSBs when there is a reasonable expectation that at least two SDVOSBs will offer at a fair and reasonable price.
Which of the following is TRUE about 8(a) graduation?
Answer: Graduation occurs automatically after 9 years or early if the firm exceeds size standards
8(a) participants graduate after completing the nine-year term or earlier if they exceed size standards, change ownership, or voluntarily withdraw; active contracts are generally allowed to run to completion.
Which SBA size standard measure is most commonly used to determine HUBZone small business eligibility?
Answer: Number of employees or average annual receipts, depending on NAICS code
HUBZone eligibility requires meeting the SBA size standard for the applicable NAICS code, which is expressed in either employees or average annual receipts depending on the industry.
Under what authority can the SBA early-terminate an 8(a) participant involuntarily?
Answer: If the firm no longer meets program requirements or engages in activities detrimental to the program
The SBA may terminate an 8(a) participant early if they no longer meet eligibility requirements, misrepresented facts, or engaged in conduct that harms the integrity of the program.