1. HUB Participation and HUB Subcontracting Plan Requirements Training

2. Historically Underutilized Business (HUB) Participation Requirements
HUB Program Mission, Goals and Objective
Statutory Requirements for HUB Participation
Administrative HUB Rules
Requirements for HUB Participation

3. HUB Program Mission, Goals
And Objectives

4. HUB Program Mission
The University of Texas at San Antonio Historically Underutilized Business (HUB) initiative is to encourage and assist participation by such businesses in the contracting and purchasing process. It is UTSA's policy to be committed to maximizing when available, the number and value of purchases with HUBs. 

5. 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:
11.2% for heavy construction other than building contracts;
21.1% for all building construction
32.9% for all special trade construction contracts;
23.7% for professional services contacts;
26.0% for all other services contracts; and,
21.1% for commodities contracts.

6. Statutory Requirements for
HUB Participation

7. What is a HUB?

8. Statutory Requirements for HUB Participation
TX GOVERNMENT CODE. CHAPTER 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

9. Statutory Requirements for HUB Participation
TX GOVERNMENT CODE. CHAPTER HISTORICALLY UNDERUTILIZED BUSINESSES. SUBCHAPTER A. (Cont.)
“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, Native Americans, and service disabled veterans as defined by 38 U.S.C. Section 101[2] who have suffered at least a 20 percent service- connected disability as defined by 38 U.S.C. Section 101[16]); and,
who has suffered the effects of discriminatory practices or other similar insidious circumstances over which the person has no control.

10. Statutory Requirements for HUB Participation
Texas Legislature
TX GOVERNMENT CODE. CHAPTER (2) (C). HISTORICALLY UNDERUTILIZED BUSINESSES. SUBCHAPTER A.
State Agencies and Institutions of Higher Education
TX Comptroller of Public Accounts
TX GOVERNMENT CODE. CHAPTER 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.

11. Statutory Requirements for HUB Participation
TEXAS GOVERNMENT CODE. CHAPTER (2) (C). HISTORICALLY UNDERUTILIZED BUSINESSES. SUBCHAPTER A. GENERAL PROVISIONS. COMMISSION ADMINISTRATION; COMPTROLLER OF PUBLIC ACCOUNTS (CPA) ASSISTANCE.
In adopting rules to administer this chapter, the Commission (i.e., CPA) shall adopt rules that are based on the results of the “State of Texas Disparity Study, A Report of the Texas Legislature as Mandated by H.B. 2626, 73rd Legislature, December 1994” (prepared by National Economic Research Associates, Inc.). The Commission shall revise the rules in response to the findings of any updates of the study that are prepared on behalf of the State.

12. Statutory Requirements for HUB Participation
TEXAS GOVERNMENT CODE. CHAPTER HISTORICALLY UNDERUTILIZED BUSINESSES. SUBCHAPTER A. GENERAL PROVISIONS. AGENCY RULES.
A State Agency, including an institution of higher education, shall adopt the commission’s rules under Section as the Agency’s or institution’s own rules. Those 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.   

13. Statutory Requirements for HUB Participation
TEXAS GOVERNMENT CODE. CHAPTER – HISTORICALLY UNDERUTILIZED BUSINESSES. SUBCHAPTER D. PURCHASING GOALS.
A state agency including the Commission, shall make a good faith effort to increase the contract awards for the purchase of goods or services and construction contracts that the agency expects to make during a fiscal year to historically underutilized businesses based on rules adopted by the commission to implement the disparity study (goals) described by Section (c).
   

14. Statutory Requirements for HUB Participation
TEXAS GOVERNMENT CODE. CHAPTER HISTORICALLY UNDERUTILIZED BUSINESSES. SUBCHAPTER D. AGENCY DETERMINATION REGARDING SUBCONTRACTING OPPORTUNITIES; BUSINESS SUBCONTRACTING PLAN.
Each state agency that considers entering into a contract with an expected value of $100,000 or more shall, before the agency solicits bids, proposals, offers, or other applicable expressions of interest for the contract, determine whether there will be subcontracting opportunities under the contract.
If the state agency determines that there is that probability, the agency shall require that each bid, proposal, offer or other applicable expression of interest for the contract include a historically underutilized business subcontracting plan.  

15. Statutory Requirements for HUB Participation
TEXAS GOVERNMENT CODE. CHAPTER HISTORICALLY UNDERUTILIZED BUSINESSES. SUBCHAPTER D. GOOD FAITH COMPLIANCE WITH BUSINESS SUBCONTRACTING PLAN.
When a state agency requires a historically underutilized business subcontracting plan under Section , the awarded contract shall contain, as a provision of the contract that must be fulfilled, the plan that the contractor submitted in its bid, proposal, offer, or other applicable expression of interest for the contract.
The contractor shall make good faith efforts to implement the plan.
   

16. Administrative HUB Rules

17. Administrative HUB Rules
Texas Administrative Code. Title 34. Part 1. Chapter 20. Subchapter B.
Rule – 20.28
20.10 Policy and Purpose
20.11 Definitions
20.12 Evaluation of Active Participation in the Control, Operation and Management of Entities
20.13 Statewide Annual Procurement Utilization Goals
20.14 Subcontracts
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 20.10, 20.13, 20.14, and involve HUB policy and procedures in state agency procurement/contracting processes

18. Administrative HUB Rules
Texas Administrative Code. Title 34. Part 1. Chapter 20.
Subchapter B. Rule 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 through

19. Administrative HUB Rules
Texas Administrative Code. Title 34. Part 1. Chapter 20. Subchapter B. Rule Subcontracts. In accordance with Texas Government Code, Chapter , Subchapter D, each state agency that considers entering into a contract with an expected value of $100,000 or more shall, before the agency solicits bids, proposals, offers, or other applicable expressions of interest, determine whether subcontracting opportunities are probable under the contract.

20. Administrative HUB Rules
Texas Administrative Code. Title 34. Part 1. Chapter 20.
Subchapter B. Rule Subcontracts. (Cont.)
If subcontracting opportunities are probable, each agency’s invitation for bids, requests for proposals or other purchase solicitation documents for construction, professional services, other services, and commodities with an expected value of $100,000 or more shall state that probability and require a HUB subcontracting plan.

21. Requirements for HUB Participation
HSP Determining the Probability for Subcontracting
Inclusion of the HSP
Development and Submission of HSP
HSP Evaluation and Findings
Pre-Bid Conference
HSP Overview
HUB Post Award Meeting

22. HSP Determining the Probability for Subcontracting Managed by HUB Program
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:
Examine the scope of work to be performed under the proposed contract and determine if it is likely that some of the work may be performed by a subcontractor;
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;

23. HSP Determining the Probability for Subcontracting (Cont
HSP Determining the Probability for Subcontracting (Cont.) Managed by HUB Program
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: (Cont.)
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 HUB Coordinator / Manager, the determination is documented and placed in the procurement file.

24. Inclusion of the HSP Managed by HUB Program
If subcontracting opportunities are probable, each agency’s invitation for bids, requests for proposals or other purchase solicitation documents for construction, professional services, other services, and commodities with an expected value of $100,000 or more shall state that probability and require a HUB subcontracting plan.
 The HUB Participation Section of the solicitation instrument will be updated with the appropriate language.

25. 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).
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 relating to Development and Submission of the HSP.
Managed by Respondents

26. HSP Evaluation and Findings Managed by HUB Program
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.

27. HSP Evaluation and Findings (Cont.) Managed by HUB Program
If it is determines that a submitted HUB subcontracting was not developed in good faith, UTSA 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.
HUB Coordinator/Manager will document its finding and determination for compliance which will be sent to the purchaser/project manager for inclusion in the procurement/contract file (copy to HUB Program Office).

28. Pre-Bid Conference Managed by HUB Program
A Vendor Conference is conducted to discuss all areas of the solicitation. The HUB Program Office participates in the Pre-Bid Conference to highlight the HUB Section of the solicitation and HUB Subcontracting Plan (HSP).

29. Agenda Topics RFP Section HUB Participation Requirements
HSP Development and Submission Requirements
HSP Assistance
Post Award HUB Requirements

30. RFP Section Historically Underutilized Business Participation Requirements
Highlights the HSP Development and Submission Requirements
Responses that do not include a completed HSP shall be rejected pursuant to the Texas Government Code § (b).
HUB Category and Participation Goal

31. RFP Section Historically Underutilized Business Participation Requirements
Potential Subcontracting Opportunities
Using the Centralized Master Bidders List and HUB Directory
Vendor Intends to Subcontract
Self Performance

32. HSP Information Page If HSP is inadequate, response will be rejected
HUB GOALS
Special reminders and instructions
Special reminders and instructions will be included by the HUB Program Office, if applicable.
HSP Information Page

33. HUB Participation Requirements
HSP Methods

34. METHOD I
If all (100%) of your subcontracting opportunities will be performed using only HUB vendors, complete the following in the HSP:
Section 1 – Respondent and Requisition Information (Page 1);
Section 2 a. – Yes, I will be subcontracting portions of the contract (Page 2);
Section 2 b. – List all the portions of work you will subcontract, and indicate the percentage of the contract you expect to award to HUB vendors (Page 2 and the continuation sheet as needed);

35. METHOD I
If all (100%) of your subcontracting opportunities will be performed using only HUB vendors, complete the following in the HSP (Cont.):
Section 2 c. – Yes, I will be using only Texas certified HUBs to perform all of the subcontracting opportunities listed (Page 2);
Section 4 – Affirmation that all information and supporting documentation submitted is true and correct (Page 3); and,
HSP GFE Method A (Attachment A) – Complete this attachment for each subcontracting opportunity (Page 1 of 1).

36. HSP Information Page
Respondent and Requisition
Information 36 36

37. 2-a; Yes, I will be subcontracting portions of the contract.
Company Name
and Requisition #
Subcontracting
Intentions:
Complete Section
2-a; Yes, I will be subcontracting portions of the contract. 37 37

38. 2-c; Yes if you will be using only HUBs
Complete Section
2-b; List all the portions of work you will subcontract, and indicate the % of the contract you expect to award to all HUBs.
Complete Section
2-c; Yes if you will be using only HUBs
to perform all Subcontracting Opportunities in 2-b. 38 38

39. Signature Affirms that Information Provided is
Section 4; Affirmation
Signature Affirms that Information Provided is
True and Correct. 39 39

40. HSP GFE Method A (Attachment A)
Complete this attachment
(Sections A-1 and
A-2) for each subcontracting opportunity.
HUB Subcontractor Selection for this Subcontracting Opportunity
Reminders: Notice to subcontractors and UTSA. 40 40

41. METHOD II
If you are subcontracting with HUBs and Non-HUBs, and the aggregate percentage of subcontracting with HUBs, Do not have an existing contract with HUBs for more than 5 years, which meets or exceeds the HUB Goal identified in the solicitation, complete the following in the HSP:
Section 1 – Respondent and Requisition Information (Page 1);
Section 2 a. – Yes, I will be subcontracting portions of the contract (Page 2);
Section 2 b. – List all the portions of work you will subcontract, and indicate the percentage of the contract you expect to award to HUB vendors (Page 2 and the continuation sheet as needed);
Section 2 c. – No, I will not be using only Texas certified HUBs to perform all of the subcontracting opportunities listed (Page 2);

42. METHOD II
(cont.)
If you are subcontracting with HUBs and Non-HUBs, and the aggregate percentage of subcontracting with HUBs, Do not have an existing contract with HUBs for more than 5 years, which meets or exceeds the HUB Goal identified in the solicitation, complete the following in the HSP (cont.):
Section 2 d. – Yes, the aggregate expected percentage of the contract you will subcontract with Texas certified HUBs, which you do not have a contract in place for five (5) years or less, meets or exceeds the HUB goal in the solicitation (Page 2)
Section 4 – Affirmation that all information and supporting documentation submitted is true and correct (Page 3); and,
HSP GFE Method A (Attachment A) – Complete this attachment for each subcontracting opportunity (Page 1 of 1).

43. HSP Information Page
Respondent and Requisition
Information 43 43

44. 2-a; Yes, I will be subcontracting portions of the contract.
Company Name
and Requisition #
Subcontracting
Intentions:
Complete Section
2-a; Yes, I will be subcontracting portions of the contract. 44 44

45. only HUBs to perform all Subcontracting Opportunities in 2-b.
Complete Section
2-b; List all the portions of work you will subcontract, and indicate the % of the contract you expect to award to HUBs and Non-HUBs.
Complete Section
2-c; No to using
only HUBs to perform all Subcontracting Opportunities in 2-b. 45 45

46. agreement in place for five (5) years or less.
Complete Section
2-d; Yes, to the Aggregate % of the contract expected to be subcontracted to HUBs to meet or exceed the HUB goal, which you have
a contract
agreement in place for five (5) years or less. 46 46

47. Signature Affirms that Information Provided is
Section 4; Affirmation
Signature Affirms that Information Provided is
True and Correct. 47 47

48. HSP GFE Method A (Attachment A)
Complete this attachment (Sections A-1 and
A-2) for each subcontracting opportunity.
Subcontractor Selection (HUBs and Non-HUBs)
Reminders: Notice to subcontractors and UTSA. 48 48

49. METHOD III
If you are subcontracting with HUBs and Non-HUBs, and the aggregate percentage of subcontracting with HUBs, holding an existing contract with HUBs for 5 years or less, does not meet or exceed the HUB Goal identified in the solicitation, complete the following in the HSP:
Section 1 – Respondent and Requisition Information (Page 1);
Section 2 a. – Yes, I will be subcontracting portions of the contract (Page 2);
Section 2 b. – List all the portions of work you will subcontract, and indicate the percentage of the contract you expect to award to HUB vendors (Page 2 and the continuation sheet as needed);
Section 2 c. – No, I will not be using only Texas certified HUBs to perform all of the subcontracting opportunities listed (Page 2);

50. METHOD III
(cont.)
If you are subcontracting with HUBs and Non-HUBs, and the aggregate percentage of subcontracting with HUBs, holding an existing contract with HUBs for 5 years or less, does not meet or exceed the HUB Goal identified in the solicitation, complete the following in the HSP (cont.):
Section 2 d. – No, the aggregate expected percentage of the contract you will subcontract with Texas certified HUBs, which you have a contract in place for five (5) years or less, does not meet or exceed the HUB goal in the solicitation (Page 2)
Section 4 – Affirmation that all information and supporting documentation submitted is true and correct (Page 3); and,
HSP GFE Method B (Attachment B) – Complete this attachment for each subcontracting opportunity (Page 1 of 1).

51. HSP Information Page
Respondent and Requisition
Information 51 51

52. 2-a; Yes, I will be subcontracting portions of the contract.
Company Name
and Requisition #
Subcontracting
Intentions:
Complete Section
2-a; Yes, I will be subcontracting portions of the contract. 52 52

53. 2-b; List all the portions of work
Complete Section
2-b; List all the portions of work
you will subcontract, and indicated the % of the contract you expect to award to HUBs and Non-HUBs.
Complete Section
2-c; No, to using
only HUBs to
perform all Subcontracting Opportunities in 2-b. 53 53

54. agreement in place for five (5) years or less.
Complete Section
2-d; No, to the Aggregate % of the contract expected to be subcontracted to HUBs to meet or exceed the HUB goal, which you have
a contract
agreement in place for five (5) years or less. 54 54

55. Signature Affirms that Information Provided is
Section 4; Affirmation
Signature Affirms that Information Provided is
True and Correct. 55 55

56. HSP GFE Method B (Attachment B)
Complete
Section B-1; and
Section B-2
only for each
subcontracting opportunity.
Good Faith Efforts to find Texas Certified HUB Vendors 56 56

57. HSP GFE Method B (Attachment B)
Written Notification Requirements
List Three (3) HUBs Contacted for this Subcontracting
Opportunity 57 57

58. HSP GFE Method B (Attachment B)
Written
Notification To Trade Organizations
List Two (2)Trade Organizations Notified with Dates Sent/Accepted. 58 58

59. HSP GFE Method B (Attachment B)
List the subcontractors
Provide written justification why HUB was not selected for this Subcontracting Opportunity
Reminders: Notice to subcontractors and UTSA. 59 59

60. METHOD IV
If you are not subcontracting any portion of the contract and will be fulfilling the entire contract with your own resources (i.e., equipment, supplies, materials, and/or employees), complete the following in the HSP:
Section 1 – Respondent and Requisition Information (Page 1);
Section 2 a. – No, I will not be subcontracting any portion of the contract, and I will be fulfilling the entire contract with my own resources (Page 2);
Section 3 – Self Performing Justification that explains how your company will fulfill the entire contract with its own resources (Page 3); and,
Section 4 – Affirmation that all information and supporting documentation submitted is true and correct (Page 3);

61. HSP Information Page
Respondent and Requisition
Information 61 61

62. 2-a; No, I will not be subcontracting any portion of the contract.
Company Name
and Requisition #
Subcontracting
Intentions:
Complete Section
2-a; No, I will not be subcontracting any portion of the contract. 62 62

63. Section 3; Self Performing Justification
List the specific page(s)/section(s) of your proposal response, OR in the space provided, which explains how your company will perform the entire contract with its own equipment, supplies, materials and/or employees. 63 63

64. Signature Affirms that Information Provided is
Section 4; Affirmation
Signature Affirms that Information Provided is
True and Correct. 64 64

65. HUB Subcontracting Plan (HSP) Overview HUB Subcontracting Opportunity
Notification Form

66. Sample for Respondent’s Use.
This form is used to notify vendors of potential subcontracting opportunities related to a specific agency solicitation. This is not a required form, just a sample notification form

67. Post Award HUB Requirements
RFP Section Historically Underutilized Business Participation Requirements
Post Award Meetings
HSP Prime Contractor Progress Assessment Report
HSP Changes After Contract Award
Reporting and Compliance with the HSP

68. HSP Prime Contractor Progress
Assessment Report 68 68

69. HSP Prime Contractor Progress Assessment Report
Required with
ALL Pay Requests
List ALL Sub
payments
(HUBs & Non-HUBs)
Required even if
not subcontracting 69 69