Businesses are drawn to Long Branch HUBzone
SBA program gives firms an advantage in getting federal contracts
By carolyn o’connell
Staff Writer

LINDSEY SIEGLE Rosalyn Dansby, an employee at Freedom Vertical Technologies Inc., assembles a circuit board at the company’s facility at 30 Memorial Parkway in Long Branch.

LONG BRANCH — Sometimes it’s not what you know, or even who you know. Sometimes it’s where you go.

That is the case for Freedom Vertical Technologies Inc., 30 Memorial Parkway.

The company, a contract manufacturer of electronic components, began in 2000 with offices in Eatontown.

In 2002 it moved to the city to take advantage of the HUBZone designation that covers much of the city’s downtown.

HUBZones, historically underutilized business zones, were created by Congress in 1997 when it reauthorized the U.S. Small Business Administration, which administers the program.

The program was created "to promote economic development and employment growth in distressed areas by providing access to more federal contracting opportunities," according to the SBA Web site.

Along with locating in the zones, a company must hire at least 35 percent of its employees from within the designated area to qualify for certification in the program.

According to Barry Stein, the city’s assistant director of industrial and economic development, once businesses are certified they can bid on all federal government contracts.

"Having a HUBZone brings business into the area that normally would not be there," said Stein.

Those businesses are eligible for federal set aside contracts, specifically designated to go to companies in the zones, and they get preferential treatment when taking part in competitive bidding processes.

Companies in HUBZones can win federal contracts with bids as much as 10 percent above the bid of a business not in a HUBZone.

Freedom Vertical Technologies’ designation as a HUBZone company helped it win a $7 million contract to supply aircraft parts to the Defense Supply Center, Richmond, Va., an operation of the Defense Logistics Agency, which is in charge of procuring supplies for the military.

The company has recently won another contract to manufacture cable assembly.

Joe Liberi, the director of manufacturing for the company, said the move to Long Branch was aided a great deal by the city, which he said was excited about the company’s relocation, and the Fort Monmouth Small Business Office, which also was very helpful in the move.

Liberi explained that the contract with the Richmond Defense Supply Center was largely for logistics and distribution because the government is seeking to outsource those duties. Freedom Vertical Technologies is handling some of the manufacturing under that contract as well as the logistics and distribution, while many of the parts are being manufactured by other HUBZone businesses.

So far, according to Liberi, the company has had no trouble meeting the employment requirements of the zone.

"What we specialize in is process control," Liberi said, citing the recent cable assembly contract. "Once we define the process, we can get HUBZone employees we can train easily."

Along with Freedom Vertical Technologies, two other companies, Daniel Productions, Broadway, and Software Product Solutions, Broadway, also are moving toward certification as HUBZone businesses.

Daniel Productions, in business for the last 13 years, moved from its location on Route 36 in West Long Branch last April. In the last 13 years the company has provided digital media production services for training, marketing, public relations and documentaries including video productions for the military.

Chris Daniel, the principal of the company, said he made the move to the city’s HUBZone to take advantage of the benefits that come with the designation.

Daniel Productions is not yet listed as certified; however, Daniel noted that he hopes to complete the employee requirements by the end of the year.

Software Professional Solutions also needs to meet the employee quota requirement before it can be certified.

According to Joe Foster, principal of Brody Inc. and Millennium O.S.S. LLC, who helped the city establish the HUBZone based on work he did regarding the creation of a cyberdistrict, the program gets an extra boost in the city because of redevelopment overlay zoning, which not only includes the HUBZone but also the Urban Enterprise Zone and Urban Coordinating Council area. "All these designations create opportunities for successful busi­nesses," said Foster.

The only stumbling block that the city may face in providing a HUBZone environment to businesses, said Foster, is space.

"There are not many buildings avail­able right now," said Foster, "especially buildings that have contiguous space available."

The biggest building available as a manufacturing facility in the district is only 7,500 square feet.

According to Foster’s research, there is smaller office space available that would support medium- and high-tech­nology business and professional offices.

Mayor Adam Schneider said the pro­gram fits well with all of the city’s re­development efforts.

"This is an important part of bringing jobs into the downtown area that will help bring our downtown to life during the working day," Schneider said.

Lindsey Siegle contributed to this story