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How Big are HUBZone Contracts, really?

One of the most common concerns I hear from new or prospective HUBZone businesses is: “What will my first contract look like? Will it be too big to handle?”

I get it—when you hear that the average HUBZone participant brings in millions in federal sales, it can sound exciting and intimidating. But here’s the good news, most firms start small. You don’t need to jump straight into making the government your biggest client on day one.

To give you a clearer picture, I analyzed HUBZone contract award sizes and how many contracts fall into each range. Here’s what was found:

Contract Size Range – Total HUBZone Sales - # of Contracts – Average Contract Size

Under 100K                   $537 Million                 58,866              $9,122

$100K-$250K                $683 Million                 6,403                 $106,669

$250K-$500K                $747 Million                 3,821                 $195,499

$500K-$1M                   $1 Billion                       3,094                 $323,206

$1M-$2M                      $1.3 Billion                    2,365                 $549,683

$2M-$5M                      $2.7 Billion                    2,453                 $1.1 Million

Over $5M                      $7.8 Billion                    1,777                 $4.39 Million

 

What This Means for You

The average small HUBZone contract comes in around $9,000—a manageable start for most businesses. As you gain experience and confidence, you’ll find plenty of opportunities to grow. In fact, there are thousands of contracts over $1 Million awarded to HUBZone firms every year.

Whether you’re just getting your feet wet or preparing to go after larger federal contracts, the HUBZone program can help you scale at your own pace.

Want to make the most of your HUBZone certification?

If you are, I recommend contacting an industry expert such as ez8a or Advance 8a. They’re always happy to share insights, answer questions, and help you take full advantage of the program, whatever step of the way you find yourself currently. Neither charge for an initial consultation.

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