When you run a contracting or construction business, working with subcontractors is a fact of life. Very few companies have the ability to function with just their current staff, especially when big jobs come up. Those that attempt to keep such large numbers of staff on board generally face layoffs during lean times.
As such, it’s best to work with subcontractors on an as-needed basis. When it comes to competing for federal jobs, it’s often a good idea to partner with companies located in historically underutilized business regions. This can give you a major competitive edge. Learn why working with HUBZone certified contractors is the best bet for your company, and why it’s equally important to have the right surety bond in place.
What is a HUBZone Certified Contractor?
HUBZone certified contractors are those businesses who operate in areas that are historically underutilized. The regions can be rural or urban, but the HUBZone program is designed to stimulate the economy in these economically disadvantaged communities, and the Federal government spends 3% of all its procurement dollars on contracts in this program.
These firms tend to be small, and as such they seek to subcontract with larger firms called Primes. If you are trying to bid on government contracts, working with one of these firms can be a big advantage.
Become Eligible for HUBZone Dollars
Working with a HUBZone contractor makes you eligible to get extra funding for your jobs. The procurement dollars the government sets aside for these companies open up new business opportunities for Prime contractors like you, who work with them.
The Federal government is actively seeking to give work to HUBZone companies. This means that by working with a certified company, you will receive preferential positioning on your bids. So long as your offer is a maximum of 10% higher than that of a non-HUBZone team, your bid will be considered as lower.
As the government actively seeks these companies to work with, they find that they’re still not meeting their goals. Because of this, they’re even more likely to accept your bid. In fact, as maps are being redrawn, many companies are losing their certifications. This means agencies are eager to find new teams.
How to Find a HubZone Partner
Partnering with a HUBZone contractor is easier than you might think. The U.S. Small Business Association provides an online tool that lets you run a search for a certified firm, based on your industry and your geographic location. Also check for certification listings on websites.
Be Sure You Have Surety Bond Coverage
No matter who you decide to work with, however, always be sure that you’re properly bonded. Working with a subcontractor is a risk at any time, and you need to be sure that if something interrupts your job, you have the ability to compensate the client, to pay your bills and to cover your obligations.
If you are in need of the right surety bond coverage, NSSI can help. Get in touch with us today to learn more about our surety bonding services and to get started with your application.