FCC SBA 8(a), SDVOSB & HUBZone 2 — Questions and Answers
Question 1: What is the maximum dollar threshold for a sole-source 8(a) contract awarded to a firm in the manufacturing sector?
- $4 million
- $7 million
- $22 million (Correct answer)
- $100 million
Correct answer: $22 million
The sole-source threshold for 8(a) manufacturing contracts is $22 million; non-manufacturing sole-source contracts are capped at $4.5 million.
Question 2: Which SBA program specifically requires a business to be located in a historically underutilized business zone?
- 8(a) Business Development
- SDVOSB
- HUBZone (Correct answer)
- WOSB
Correct answer: HUBZone
The HUBZone program requires the principal office to be located in a designated Historically Underutilized Business Zone.
Question 3: A veteran with a 20% service-connected disability rating applies for SDVOSB certification. Are they eligible?
- No, minimum rating is 30%
- Yes, any service-connected disability qualifies (Correct answer)
- No, minimum rating is 50%
- Yes, but only for sole-source contracts under $5 million
Correct answer: Yes, any service-connected disability qualifies
The VA and SBA define a service-disabled veteran as having any service-connected disability rating, with no minimum percentage required.
Question 4: Under the HUBZone program, what percentage of a firm's employees must reside in a HUBZone?
- 10%
- 25% (Correct answer)
- 35%
- 51%
Correct answer: 25%
At least 35% of a HUBZone firm's employees must reside in a HUBZone.
Question 5: An 8(a) firm has been in the program for 6 years. Which phase are they currently in?
- Developmental stage
- Transitional stage (Correct answer)
- Graduation stage
- Competitive stage
Correct answer: Transitional stage
The 8(a) program has two stages: developmental (years 1–4) and transitional (years 5–9), so year 6 falls in the transitional stage.
Question 6: Which agency maintains the official list of certified HUBZone small businesses eligible for federal contracts?
- Department of Defense
- GSA
- SBA (Correct answer)
- VA
Correct answer: SBA
The SBA maintains the Dynamic Small Business Search (DSBS) and the HUBZone map and certified firm list.
Question 7: What happens to an 8(a) firm's eligibility if the disadvantaged owner's net worth exceeds $750,000 (excluding primary residence and business equity)?
- The firm is placed on probation for one year
- The firm is immediately terminated from the program
- The firm loses eligibility for new sole-source awards only
- The firm may be found ineligible upon SBA review (Correct answer)
Correct answer: The firm may be found ineligible upon SBA review
Exceeding the $750,000 net worth threshold is grounds for SBA to find the participant no longer economically disadvantaged and remove them from the program.
FCC SBA 8(a), SDVOSB & HUBZone 2
What is the maximum dollar threshold for a sole-source 8(a) contract awarded to a firm in the manufacturing sector?