HUB Participation and HUB Subcontracting Plan Requirements
Training
Administrative Services Development HUB Program Office
Health and Human Services CommissionHistorically Underutilized Business (HUB)Participation Requirements
HHSC HUB Program Mission, Goals and Objective
Statutory Requirements for HUB Participation
Administrative HUB Rules
HHSC Requirements for HUB Participation
HUB Program Mission, Goals
And Objectives
HUB Program Mission
State of Texas Disparity Study Goals
Utilization of HUBs in procurement and contracting processes
Contract Directly Contract Indirectly(Subcontracting)
HUB Program Goals and Objectives
The Commission is committed to promoting full and equal business
opportunities for all businesses in State contracting as
referenced in HUB Rules and in accordance with the
goals as related to the State of Texas Disparity Study:
11.9% for heavy construction other than building contracts; 26.1% for all building construction 57.2% for all special trade construction contracts; 20% for professional services contacts; 33% for all other services contracts; and, 12.6% for commodities contracts.
Reference: Texas Administrative Code. Title 34. Part 1. Chapter 20. Subchapter B. Rule 20.11 and Rule 20.13.
Statutory Requirements for
HUB Participation
What is a HUB?
Statutory Requirements for HUB Participation
TX GOVERNMENT CODE. CHAPTER 2161.001. HISTORICALLY UNDERUTILIZED BUSINESSES. SUBCHAPTER A.
“Historically Underutilized Businesses” is defined as:
Business where headquarters resides in Texas For profit business 51% or more of the business is owned by an Economically Disadvantaged Person
(EDP) EDP actively participates in the business’ control, operation, and management
“Economically Disadvantaged Person” is defined as:
A person who is economically disadvantaged because of the person’s identification as a member of a certain group (i.e. Black Americans, Hispanic Americans, Women, Asian Pacific Americans, and Native Americans) and who has suffered the effects of discriminatory practices or other similar insidious circumstances over which the person has no control.
Statutory Requirements for HUB Participation
Texas Legislature
TX GOVERNMENT CODE. CHAPTER 2161.002 (2) (C). HISTORICALLY UNDERUTILIZED
BUSINESSES. SUBCHAPTER A.
TX Comptroller of Public Accounts
TX GOVERNMENT CODE. CHAPTER 2161.003. HISTORICALLY UNDERUTILIZED
BUSINESSES. SUBCHAPTER A.
State Agencies and Institutions of Higher Education
Rules apply to the Agency’s construction projects and purchases of goods and services
paid for with appropriated money without regard to whether a project or purchase is
otherwise subject to this subtitle.
Statutory Requirements for HUB Participation
Good faith effort to increase contract awards during a fiscal year to historically
underutilized businesses
TX GOVERNMENT CODE. CHAPTER 2161.181 – 182. HISTORICALLY UNDERUTILIZED BUSINESSES. SUBCHAPTER D.
STATE AGENCY PURCHASING GOALS
Contract directly or indirectly
HUB Disparity Goals.
Statutory Requirements for HUB Participation
HUB Subcontracting Plan
TX GOVERNMENT CODE. CHAPTER 2161.252. HISTORICALLY UNDERUTILIZED BUSINESSES. SUBCHAPTER D.
AGENCY DETERMINATION REGARDING SUBCONTRACTING OPPORTUNITIES
Contract over $100,000 + Subcontracting
=
Statutory Requirements for HUB Participation
TX GOVERNMENT CODE. CHAPTER 2161.253. HISTORICALLY UNDERUTILIZED BUSINESSES. SUBCHAPTER D.
GOOD FAITH COMPLIANCE WITH BUSINESS SUBCONTRACTING PLAN.
HUB Subcontracting Plan
HUB Subcontracting Plan (HSP):
• The HSP is included as a part of the contract.
• Good faith effort to implement the plan during the term of the contract.
Administrative HUB Rules
Administrative HUB Rules
Rules 20.11, 20.13, and 20.14 involve HUB policy and procedures in state
agency procurement/contracting processes
Texas Administrative Code. Title 34. Part 1. Chapter 20. Subchapter B.
Rule 20.11 – 20.28 20.11 Policy and Purpose 20.12 Definitions 20.13 Annual Procurement Utilization Goals 20.14 Subcontractors 20.15 Agency Planning Responsibilities 20.16 State Agency Reporting Requirements 20.17 Certification Process 20.18 Protest 20.19 Recertification 20.20 Revocation 20.21 Certification and Compliance Reviews 20.22 Texas Historically Underutilized Business Certification Directory 20.24 Program Review 20.25 Memorandum of Understanding between the Department of Economic Development and the Texas
Comptroller of Public Accounts 20.26 HUB Coordinator Responsibilities 20.27 HUB Forum Programs for State Agencies 20.28 Mentor Protégé Program
http://info.sos.state.tx.us/pls/pub/readtac$ext.ViewTAC?tac_view=5&ti=34&pt=1&ch=20&sch=B&rl=Y
Administrative HUB Rules
Texas Administrative Code. Title 34. Part 1. Chapter 20. Subchapter
B. Rule 20.11. Policy and Purpose.
Policy of the Commission:Encourage HUB utilization by State Agencies and to assist agencies in the implementation of this policy through race, ethnic, and gender-neutral means.
Promote full and equal business opportunities for all businesses in state contracting in accordance with the goals related to the State of Texas Disparity Study and 34 TAC Sections 20.11 through 20.28.
HHSC Requirements for HUB Participation
1. HUB Subcontracting Plan (HSP) Determination of HUB Probability
2. Inclusion of the HSP
3. Development and Submission of HSP
4. HSP Evaluation and Findings
5. Vendor Conference
6. HSP Overview
7. HUB Post Award Meeting
HSP Determination of HUB ProbabilityManaged by HUB Coordinators
State Agencies shall use the following steps to determine if subcontracting opportunities are probable under the contract with an expected value of $100,000 or more:
Review HUB Annual Procurement Utilization Goals;
Research Centralized Master Bidders List, HUB Directory, Internet and other directories identified by the Commission for HUBS that may be available to perform the contract work;
Contact other state and local agencies and institutions of higher education to obtain information regarding similar contracting and subcontracting opportunities; and,
Review history of similar agency purchasing transactions.
Once a determination has been made by the HHSC Coordinator/Administrator, the determination is documented , with the appropriate form, in the procurement file
Inclusion of the HSPManaged by HUB Coordinators
The HUB Participation Section (Section 4) of the solicitation instrument will be updated with the appropriate language, which will also include potential subcontracting
opportunities related to the procurement as identified by HHSC
Contract over $100,000 + Subcontracting
=HUB Subcontracting Plan
Development and Submission of the HSP
The HUB subcontracting plan shall be submitted at the same time as the response (bid, proposal, offer, or other applicable expression of interest), except for construction contracts involving alternative delivery methods.
Responses that do not include a completed HUB Subcontracting plan will be rejected due to material failure to comply with advertised specifications in accordance with Subsection 113.6(a) of Title 34 relating to Bid Evaluation and Award, or Section 20.14 relating to Development and Submission of the HSP.
Managed by Respondents
HSP Evaluation and FindingsManaged by HUB Coordinators
The HUB subcontracting plan shall be reviewed and evaluated prior to contract award and, if accepted, shall become a provision of the agency’s contract.
Revisions necessary to clarify and enhance information submitted in the original HUB subcontracting plan may be made in an effort to determine good faith effort.
State agencies shall review the documentation submitted by the respondent to determine if a good faith effort has been made in accordance with Title 34.
If HHSC determines that a submitted HUB subcontracting was not developed in good faith, HHSC will determine a material failure to comply with advertised specifications and the subject response (bid, proposal, offer) shall be rejected. The reasons for rejection shall be recorded in the procurement file.
HHSC HUB Coordinator/Administrator will document its finding and determination for compliance which will be sent to the project manager for inclusion in the procurement/contract file (copy to HUB Program Office).
Vendor ConferenceManaged by HUB Coordinators
A Vendor Conference is always encouraged to highlight the HUB Requirement for the development and submission of the HSP, and any new requirements related to the
procurement/contract.
HUB Subcontracting Plan(HSP) Overview
If HSP is inadequate, response will be rejected
HSP Information Page
HSP Information Page
HUB GOALS
Special reminders and instructions
HSP Information Page
Section 1: Company
Information
HSP Information Page
Section 2:
SubcontractingDeclaration
OrSelf Performance
Declaration
HSP Information Page
If more than 20 subcontracting
opportunities, click the link provided to
continue adding
HSP Information Page
Section 2:Enter
subcontracting opportunities
One page for each area
subcontracted(listed on page
1)
HSP Information Page
Section 3:List Line # and Subcontracting
Opportunity
HSP Information Page
Section 4:Protégé
performing the work
HSP Information Page
Section 8:Skip to
Sections 8 and 10
Section 5: Professional
Services Category
HSP Information Page
Section 6(a): Good Faith Efforts to
find/include Texas Certified HUB Vendors
HSP Information Page
Section 6(b):Contact HUB
Trade Organization
HSP Information Page
Section 6(c):Written
Notification Requirements
HSP Information Page
Section 7:List 3 HUBs
Contacted for this
Subcontracting Opportunity
HSP Information Page
Section 8:List Subs Selected
(HUBs & Non-HUBs) for this
Subcontracting Opportunity
HSP Information Page
Section 8:Reason why HUB
was not selected for this Subcontracting
Opportunity
HSP Information Page
Section 9:Self Performance
Explanation
HSP Information Page
Section 10: Signature
Affirms that True and Correct
Information is Provided
HSP Information Page
• Required with ALL Pay Requests
• List ALL Sub payments (HUBs & Non-HUBs)
HSP Prime Contractor Progress Assessment Report
ATTACHMENT “E”
HUB Post Award MeetingManaged by HUB Coordinators
The Post Award Meeting is conducted to address questions and provide clarification regarding:
• Monthly Reporting using the Progress Assessment Report (PAR); • Notification of changes in subcontractors; or the original HSP;• Amendments and Renewals;• Fiscal Year Expenditure Totals (September 1st – August 31st);• Determining HUB or Minority Status;• HUB Certification and Re-Certification with the State’s HUB Program; and,• Any Other Contract Requirements.
Administrative Services Development HUB Program Office
Robert L. Hall, C.P.M. Director of Administrative Services Development
- (512) 424-6596- [email protected]
Carlos A. Balderas ASD HUB Administrator
- (512) 424-6896- [email protected]
Sherice V. Williams-Patty ASD HUB Administrator
- (512) 424-6903- [email protected]
Sharon AddisonASD Procurement / HUB Program Team Leader- (512) 487-3404- [email protected]