HUB Participation and HUB Subcontracting Plan Requirements Training Administrative Services Development HUB Program Office HUB Participation and HUB Subcontracting Plan Requirements Training

Health and Human Services Commission Historically 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

Utilization of HUBs in procurement and contracting processes HUB Program Mission Utilization of HUBs in procurement and contracting processes Contract Directly Contract Indirectly (Subcontracting) State of Texas Disparity Study Goals

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. State Agencies and Institutions of Higher Education TX Comptroller of Public Accounts TX GOVERNMENT CODE. CHAPTER 2161.003. HISTORICALLY UNDERUTILIZED BUSINESSES. SUBCHAPTER A. 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 TX GOVERNMENT CODE. CHAPTER 2161.181 – 182. HISTORICALLY UNDERUTILIZED BUSINESSES. SUBCHAPTER D. STATE AGENCY PURCHASING GOALS Good faith effort to increase contract awards during a fiscal year to historically underutilized businesses Contract directly or indirectly HUB Disparity Goals.

Statutory Requirements for HUB Participation TX GOVERNMENT CODE. CHAPTER 2161.252. HISTORICALLY UNDERUTILIZED BUSINESSES. SUBCHAPTER D. AGENCY DETERMINATION REGARDING SUBCONTRACTING OPPORTUNITIES = Contract over $100,000 + Subcontracting HUB Subcontracting Plan

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 (HSP): The HSP is included as a part of the contract. Good faith effort to implement the plan during the term of the contract. HUB Subcontracting Plan

Administrative HUB Rules

Administrative HUB Rules 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 Rules 20.11, 20.13, and 20.14 involve HUB policy and procedures in state agency procurement/contracting processes 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 HUB Subcontracting Plan (HSP) Determination of HUB Probability Inclusion of the HSP Development and Submission of HSP HSP Evaluation and Findings Vendor Conference HSP Overview HUB Post Award Meeting

HSP Determination of HUB Probability Managed 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 HSP Managed by HUB Coordinators = Contract over $100,000 + Subcontracting HUB Subcontracting Plan 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

Development and Submission of the HSP Managed by Respondents 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.

HSP Evaluation and Findings Managed 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 Conference Managed 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

HUB GOALS HSP Information Page

Special reminders and instructions HSP Information Page Special reminders and instructions

HSP Information Page Section 1: Company Information

Self Performance Declaration HSP Information Page Section 2: Subcontracting Declaration Or Self Performance Declaration

Enter subcontracting opportunities HSP Information Page Section 2: Enter subcontracting opportunities If more than 20 subcontracting opportunities, click the link provided to continue adding

One page for each area subcontracted (listed on page 1) HSP Information Page

List Line # and Subcontracting Opportunity Section 3: List Line # and Subcontracting Opportunity HSP Information Page

Protégé performing the work HSP Information Page Section 4: Protégé performing the work Section 8: Skip to Sections 8 and 10

Section 5: Professional Services HSP Information Page Section 5: Professional Services Category

HSP Information Page Section 6(a): Good Faith Efforts to find/include Texas Certified HUB Vendors

Contact HUB Trade Organization HSP Information Page Section 6(b): Contact HUB Trade Organization

Written Notification Requirements HSP Information Page Section 6(c): Written Notification Requirements

List 3 HUBs Contacted for this Subcontracting 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

Reason why HUB was not selected for this Subcontracting Opportunity HSP Information Page Section 8: Reason why HUB was not selected for this Subcontracting Opportunity

Self Performance Explanation Section 9: Self Performance Explanation HSP Information Page

HSP Information Page Section 10: Signature Affirms that True and Correct Information is Provided

HSP Prime Contractor Progress Assessment Report ATTACHMENT “E” HSP Prime Contractor Progress Assessment Report Required with ALL Pay Requests List ALL Sub payments (HUBs & Non-HUBs)

HUB Post Award Meeting Managed 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 - robert.hall@hhsc.state.tx.us Carlos A. Balderas ASD HUB Administrator - (512) 424-6896 - carlos.balderas@hhsc.state.tx.us Sherice V. Williams-Patty - (512) 424-6903 - sherice.williams-patty@hhsc.state.tx.us Sharon Addison ASD Procurement / HUB Program Team Leader - (512) 487-3404 - sharon.addison@hhsc.state.tx.us