State Contracting and the
HUB Program
Be HUB CertifiedBe Ready for Opportunity
The goal of the Statewide HUB Program is:
to actively involve HUBs in the Texas procurement process
and
• to ensure they receive a fair share of state business.
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HUB certification is an important step for minorityand woman-owned businesses to introduce their
products and services to the state of Texas.
In fiscal 2008, Texas awarded more than $1.85 billion in contracts —
including more than $743 million in subcontracts — to companies
certified as HUBs.
In this presentation, we’ll take a look at the Statewide HUB Program
and discuss who is eligible and how to become certified.
Give Your Business the Advantage
of HUB Certification
 HUB certification is free of charge and good for up to four
years.
 Benefits of HUB certification include increased exposure to state agencies
and universities, which are constantly looking to work with businesses
certified as HUBs.
 Only certified HUBs are listed in the online Texas HUB Directory, and
state entities can directly contact a business to buy goods and services for
purchases of $5,000 or less. More than $41 million of these small-dollar
purchases were made in 2007.
 The Texas HUB Directory is also searched by vendors looking for certified
HUBs to include in their subcontracting plans for projects of $100,000 or
more.
 Certified HUBs registered with the state’s Centralized Master Bidders List the CMBL - are sought by state purchasers looking for potential bidders.
State entities are required to search the CMBL for most purchases, and
HUB certification is an important search criteria because of purchasers’
efforts to include HUBs in the bidding process.
HUB Eligibility- A Respected Standard
Criteria I- Ethnicity, U.S. Citizenship and Texas Residency
The following individuals are eligible HUB owners:
• Asian Pacific Americans
Including persons whose origins are from:
-- Japan, China, Taiwan, Korea, Vietnam, Laos, Cambodia, the
Philippines, Samoa, Guam, the U.S. Trust Territories of the Pacific, the
Northern Marianas, and
--Subcontinent Asian Americans, which includes persons whose origins
are from India, Pakistan, Bangladesh, Sri Lanka, Bhutan or Nepal.
• Black Americans
Including persons having origins in any of the black racial groups of
Africa.
HUB Eligibility- A Respected Standard
Criteria I- Ethnicity, U.S. Citizenship and Texas Residency
• Hispanic Americans
Including persons of Mexican, Puerto Rican, Cuban, Central or South American or
other Spanish or Portuguese culture or origin, regardless of race.
• Native Americans
Including persons who are American Indians, Eskimos, Aleuts or Native Hawaiians.
• American Women
Which includes all women of any ethnicity not specified above.
Eligible HUB owners also must be citizens of the United States and Texas residents.
Resident Aliens are not eligible for HUB certification.
HUB Eligibility- A Respected
Standard
Criteria II- Ownership
The following types of for-profit business entities are eligible for HUB
certification if at least 51 percent of the assets and interest of all classes of
stock and equitable securities are owned by one or more persons who are
eligible HUB owners:
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Sole Proprietorships
Partnerships
Corporations
Joint Ventures
Limited Liability Partnerships, and
Limited Liability Companies
Sole proprietorships must be 100 percent owned and controlled by an eligible HUB
owner. In addition, each entity within a joint venture is required to be HUB certified.
Non-profit organizations are not eligible for HUB certification.
HUB Eligibility- A Respected
Standard
Criteria III- Active Participation, Control, and Proportionate Interest
• Eligible HUB owners must actively participate in the daily operations of the
business at a level that is comparable to their ownership.
• Eligible HUB owners must be able to make independent business decisions such as administrative duties, personnel management, negotiation and
execution of contracts and financial transactions - that guide the future and
destiny of the business.
Absentee or titular ownership - owners who do not actively control the business - is not
consistent with HUB eligibility standards.
HUB Eligibility- A Respected
Standard
Criteria IV- Principal Place Of Business
• A HUB’s principal place of business must be in Texas.
•
The business must be registered with the
appropriate authority in Texas.
-Corporations, limited liability partnerships and
limited liability companies must be registered with the
Texas Secretary of State.
-Sole proprietorships and general partnerships
must be registered with the county in which they are
located.
Certification Agreements
• The Statewide HUB Program has established agreements with
certain local governments and non-profit organizations in Texas
that certify businesses meeting standards as defined by the
Statewide HUB Program.
• Minority- and woman-owned businesses certified with one of
these entities may receive Statewide HUB certification if the
certifying entity submits the business’ information to the
Statewide HUB Program for approval and inclusion in the Texas
HUB Directory.
Certification agreements have
been established with the
following entities:
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City of Austin
City of Houston
Central and South Texas Minority Business Council
Dallas/Fort Worth Minority Business Council
Houston Minority Business Council
South Central Texas Regional Certification Agency
Texas Department of Transportation
Women’s Business Council-Southwest, and
Women’s Business Enterprise Alliance
Put the Statewide HUB program to
work for you!
 The HUB Certification Application requires general business
information.
 The application must be completed, signed by the eligible applicant
or applicants and notarized.
 Supporting documentation is required to substantiate business
structure and HUB eligibility.
 Upon approval, the certified vendor will receive a HUB certification
package, which includes tools and resources for doing business with
the state.
HUB certification is a smart
choice.
Texas is rich with opportunities for your business, and we’re committed to
making the Statewide HUB Program a success for you and all its
members.
For more Information,
visit:
www.Texas4HUBs.org
You can reach a program representative by calling
us toll-free at (888) 863-5881 or by sending an email to Texas4HUBs@cpa.state.tx.us.
Thank you for your interest in the Statewide HUB
Program.