Ill STAT. 2628 PUBLIC LAW 105-135—DEC. 2, 1997 Regulations. average unemployment rate for the State in which the county is located. "(5) QUALIFIED HUBZONE SMALL BUSINESS CONCERN.— "(A) IN GENERAL.—^A HUBZone small business concern is 'qualified', if— "(i) the small business concern has certified in writing to the Administrator (or the Administrator otherwise determines, based on information submitted to the Administrator by the small business concern, or based on certification procedures, which shall be established by the Administration by regulation) that— "(I) it is a HUBZone small business concern; "(II) not less than 35 percent of the employees of the small business concern reside in a HUBZone, and the small business concern will attempt to maintain this employment percentage during the performance of any contract awarded to the small business concern on the basis of a preference provided under section 31(b); and "(III) with respect to any subcontract entered into by the small business concern pursuant to a contract awarded to the small business concern under section 31, the small business concern will ensure that— "(aa) in the case of a contract for services (except construction), not less than 50 percent of the cost of contract performance incurred for personnel will be expended for its employ- ees or for employees of other HUBZone small business concerns; and "(bb) in the case of a contract for procurement of supplies (other than procurement from a regular dealer in such supplies), not less than 50 percent of the cost of manufacturing the supplies (not including the cost of materials) will be incurred in connection with the performance of the contract in a HUBZone by 1 or more HUBZone small business concerns; and "(ii) no certification made or information provided by the small business concern under clause (i) has been, in accordance with the procedures established under section 31(c)(1)— "(I) successfully challenged by an interested party; or "(II) otherwise determined by the Administrator to be materially false. "(B) CHANGE IN PERCENTAGES.—The Administrator may utilize a percentage other than the percentage specified in item (aa) or (bb) of subparagraph (A)(i)(III), if the Administrator determines that such action is necessary to reflect conventional industry practices among small business concerns that are below the numerical size standard for businesses in that industry category. "(C) CONSTRUCTION AND OTHER CONTRACTS.— The Administrator shall promulgate final regulations imposing
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