Procurement and Contracting Services
HUB Program Office
Historically Underutilized Businesses (HUB)
Participation and HUB Subcontracting Plan (HSP)
Requirements
Health and Human Services
HUB Participation Requirements

HHS HUB Program Mission, Goals and Objective

Statutory Requirements for HUB Participation

Administrative HUB Rules

HHS Requirements for HUB Participation
2
HUB Program Mission, Goals
And Objectives
3
HUB Program Mission
The mission of HHS’s HUB Program is to facilitate the use of HUBs in its
procurement and solicitation processes to accomplish the goals as referenced
in HUB Rules and in accordance with the State of Texas Disparity Study;
thereby assisting HUBs in receiving a percentage of HHS annual contract
awards through contracting directly or indirectly with HUBs through
subcontracting opportunities.
4
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:
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11.2% for heavy construction other than building contracts;
21.1% for all building construction
32.7% for all special trade construction contracts;
23.6% for professional services contacts;
24.6% for all other services contracts; and,
21.0% for commodities contracts.
5
Statutory Requirements for
HUB Participation
6
What is a HUB?
7
Statutory Requirements for HUB Participation
TX GOVERNMENT CODE. CHAPTER 2161.001. HISTORICALLY
UNDERUTILIZED BUSINESSES. SUBCHAPTER A.
“Historically Underutilized Businesses” is defined as:
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Business where headquarters resides in Texas
For profit business
51% or more of the business is owned by an Economically Disadvantaged
Person (EDP) or Service Disabled Veteran
EDP actively participates in the business’ control, operation, and
management
8
Statutory Requirements for HUB Participation
TX GOVERNMENT CODE. CHAPTER 2161.001. 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, and Native
Americans) and who has suffered the effects of discriminatory practices or
other similar insidious circumstances over which the person has no control.
9
Statutory Requirements for HUB Participation
TEXAS GOVERNMENT CODE. CHAPTER 2161.002 (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”. 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.
10
Statutory Requirements for HUB Participation
TEXAS GOVERNMENT CODE. CHAPTER 2161.003. 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 2161.002 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.
11
Statutory Requirements for HUB Participation
TEXAS GOVERNMENT CODE. CHAPTER 2161.181 – 182. 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 2161.002 (c).
12
Statutory Requirements for HUB Participation
TEXAS GOVERNMENT CODE. CHAPTER 2161.252. 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.
13
Statutory Requirements for HUB Participation
TEXAS GOVERNMENT CODE. CHAPTER 2161.253. 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 2161.252, 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.
14
Administrative HUB Rules
15
Administrative HUB Rules
Texas Administrative Code. Title 34. Part 1. Chapter 20. Subchapter B.
Rule 20.11 – 20.28
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20.11 Policy and Purpose
20.12 Definitions
20.13 Annual Procurement Utilization Goals
Rules 20.11, 20.13, 20.14, and 20.16
20.14 Subcontractors
involve HUB policy and procedures
20.15 Agency Planning Responsibilities
20.16 State Agency Reporting Requirements
in state agency
20.17 Certification Process
procurement/contracting processes
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
16
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.
17
Administrative HUB Rules
Texas Administrative Code. Title 34. Part 1. Chapter 20.
Subchapter B. Rule 20.14. Subcontracts.
In accordance with Texas Government Code, Chapter 2161.252, 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.
18
Administrative HUB Rules
Texas Administrative Code. Title 34. Part 1. Chapter 20.
Subchapter B. Rule 20.14. 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.
19
HHS Requirements for HUB Participation
1.
2.
3.
4.
5.
6.
HSP Determining the Probability for
Subcontracting
Inclusion of the HSP
Development and Submission of HSP
HSP Evaluation and Findings
HSP Overview
HUB Post Award Meeting
20
HSP Determining the Probability for
Subcontracting
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:

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;
21
HSP Determining the Probability for
Subcontracting (Cont.)
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: (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 HHS
Coordinator/Administrator, the determination is documented with the
appropriate form, and placed in the procurement file.
22
Inclusion of the HSP
Managed by HUB Coordinators
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, which will also include potential subcontracting
opportunities related to the procurement as identified by HHS.
23
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.
24
HSP Evaluation and Findings
Managed by HUB Coordinators
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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.
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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.
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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.
25
HSP Evaluation and Findings (Cont.)
Managed by HUB Coordinators

If HHS determines that a submitted HUB subcontracting was not developed
in good faith, HHS 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.

HHS 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).
26
HHS Requirements for HUB
Participation
Agenda Topics
• RFP Section HUB Participation Requirements
• HSP Development and Submission Requirements
• HSP Assistance
• Post Award HUB Requirements
28
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
§2161.252(b).
• HUB Category and Participation Goal
29
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
30
HUB Subcontracting Plan (HSP)
Development and Submission
31
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
32
HSP Quick Checklist
(cut and paste in URL)
http://www.hhsc.state.tx.us/about_hhsc/BusOpp/HUB/HS
P-Quick-Check-List.pdf
33
HSP Development and
Submission Requirements
• HSP Methods;
• Quick Checklist
34
HUB Participation Requirements
HSP Methods
35
METHOD OPTIONS
A Respondent may choose from one of the following
methods when completing the HSP:
• Method I – if 100% of your subcontracting opportunities will be
performed using only HUB vendors;
• Method II – if one or more of the subcontracting opportunities
identified will be performed using HUB protégé’s;
• Method III – if a combination of HUBs and Non-HUBs are used to
perform the subcontracting work identified AND the HUB goal
identified in the solicitation is met or exceeded;
36
METHOD OPTIONS
A Respondent may choose from one of the following
methods when completing the HSP ………(continued)
• Method IV – if a combination of HUBs and Non-HUBs are used
to perform the subcontracting work identified AND the HUB goal
identified in the solicitation is not met or exceeded.
• Method V - if the Respondent intends to self perform all of the
work utilizing their own resources, equipment, employees, and
supplies.
37
ALL METHODS
For ALL Methods, complete the following steps:
• Page 1 – Section 1 - Respondent and Requisition Information
• Page 2 – Company and Requisition Information
• Page 2 – Section 2(a) – Subcontracting Intentions
• Section 4 – Affirmation and Signature
38
HSP
Information
Page
Respondent and
Requisition
Information
39
Company Name and
Requisition #
Subcontracting
Intentions:
If Yes, Complete
Section 2a
If No, Complete
Section 2b
40
Section 4;
Affirmation
Signature
Affirms that
Information
Provided is
True and
Correct.
41
METHOD I
If all (100%) of your subcontracting opportunities will
be performed using only HUB vendors, complete:
• All of the steps in Slide 40
• 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;
• Section 2 c. – Yes;
• HSP Good Faith Effort (GFE) Method A (Attachment A) –
Complete this attachment for each subcontracting opportunity.
42
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.
43
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.
44
HSP GFE Method A
(Attachment A)
Complete this
attachment
(Sections A-1 and
A-2) and List Line #
and Subcontracting
Opportunity.
HUB Subcontractor
Selection for this
Subcontracting
Opportunity
45
METHOD II
If any of your subcontracting opportunities will be
performed using HUB protégés, complete:
• All of the steps in Slide 40;
• 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;
• HSP GFE Method B (Attachment B) – Complete
Section B-1 and Section B-2 only for each
subcontracting opportunity as applicable.
46
Complete Section
2-b; List all the
portions of work you
will subcontract, and
indicate the % of the
contract you expect
to award to HUB
Protégés.
Skip Sections
2-c and 2-d.
47
HSP GFE Method B
(Attachment B)
Complete
Sections B-1; and
B-2 only for each
HUB Protégé
subcontracting
opportunity.
48
HSP GFE Method B
(Attachment B)
List the
HUB Protégé(s)
49
METHOD III
If you are subcontracting with HUBs and Non-HUBs, and
the aggregate percentage of subcontracting with HUBs
meets or exceeds the HUB Goal identified in the
solicitation, complete:
●
All of the steps in Slide 40
●
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 and Non HUB vendors;
●
Section 2 c. – No;
●
Section 2 d. – Yes;
●
HSP GFE Method A (Attachment A) – Complete this attachment for
each subcontracting opportunity identified in Section 2.
50
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.
51
Complete Section
2-d; Yes, to the
Aggregate % of the
contract expected to
be subcontracted to
HUBs to meet or
exceed the HUB goal
52
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)
53
METHOD IV
If you are subcontracting with HUBs and Non-HUBs, and
the aggregate percentage of subcontracting with HUBs,
does not meet or exceed the HUB Goal identified in the
solicitation, complete:
● All of the steps in Slide 40
●
Section 2 b. – List all the portions of work you will subcontract,
and indicated the percentage of the contract you expect to award
to HUB vendors and Non HUB vendors;
●
Section 2 c. – No;
●
Section 2 d. – No;
●
HSP GFE Method B (Attachment B) – Complete this attachment
for each subcontracting opportunity.
54
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.
55
Complete Section
2-d; No, to the
Aggregate % of the
contract expected to
be subcontracted to
HUBs to meet or
exceed the HUB goal
56
HSP GFE Method
B (Attachment B)
Complete
Section B-1; and
Good Faith
Efforts to find
Texas Certified
HUB Vendors
57
HSP GFE Method
B (Attachment B)
Written
Notification
Requirements
List 3 HUBs
Contacted
for this
Subcontracting
Opportunity
58
HSP GFE Method B
(Attachment B)
Written
Notification To
Trade
Organizations
59
HSP GFE Method B
(Attachment B)
List Trade
Organizations
Notified with
Dates
Sent/Accepted.
60
HSP GFE Method B
(Attachment B)
Provide written
justification why a
HUB was not
selected for this
Subcontracting
Opportunity
61
METHOD V
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:
● All of the steps in Slide 40
● Section 3 Self Performing Justification
62
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
HUB Subcontracting Opportunity
Notification Form
64
REMINDER:
SUBCONTRACTOR
NOTIFICATION
When a
Respondent
intends to
subcontract any
portion of work
and selects
subcontractors to
perform the work;
Notification must
be submitted to
subcontractor(s)
and HHSC
65
HUB Subcontracting Plan (HSP)
Overview
HUB Subcontracting Opportunity
Notification Form
http://www.cpa.state.tx.us/procurement/prog/hub/hubforms/HUBSubcontractingOpportunityNotificationForm.pdf
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
69
HSP Prime
Contractor
Progress
Assessment
Report
• Required with
ALL Pay Requests
• List ALL Sub
payments
(HUBs & Non-HUBs)
• Required even if
not subcontracting
70