Presentation on theme: "HUB Participation and HUB Subcontracting Plan Requirements Training"— Presentation transcript:
1 HUB Participation and HUB Subcontracting Plan Requirements Training Administrative Services DevelopmentHUB Program OfficeHUB Participation and HUB Subcontracting Plan Requirements Training
2 Health and Human Services Commission Historically Underutilized Business (HUB) Participation RequirementsHHSC HUB Program Mission, Goals and ObjectiveStatutory Requirements for HUB ParticipationAdministrative HUB RulesHHSC Requirements for HUB Participation
4 Utilization of HUBs in procurement and contracting processes HUB Program MissionUtilization of HUBs in procurementand contracting processesContract DirectlyContract Indirectly(Subcontracting)State of Texas Disparity Study Goals
5 HUB Program Goals and Objectives The Commission is committed to promoting full and equal businessopportunities for all businesses in State contracting asreferenced in HUB Rules and in accordance with thegoals as related to the State of Texas Disparity Study:11.9% for heavy construction other than building contracts;26.1% for all building construction57.2% 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 and Rule
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 TexasFor profit business51% 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.
9 Statutory Requirements for HUB Participation Texas LegislatureTX GOVERNMENT CODE. CHAPTER (2) (C). HISTORICALLY UNDERUTILIZED BUSINESSES. SUBCHAPTER A.State Agencies and Institutions of Higher EducationTX Comptroller of Public AccountsTX 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.
10 Statutory Requirements for HUB Participation TX GOVERNMENT CODE. CHAPTER – HISTORICALLY UNDERUTILIZED BUSINESSES. SUBCHAPTER D.STATE AGENCY PURCHASING GOALSGood faith effort to increase contract awards during a fiscal year to historically underutilized businessesContract directlyor indirectlyHUB DisparityGoals.
11 Statutory Requirements for HUB Participation TX GOVERNMENT CODE. CHAPTER HISTORICALLY UNDERUTILIZED BUSINESSES. SUBCHAPTER D.AGENCY DETERMINATION REGARDING SUBCONTRACTING OPPORTUNITIES=Contract over $100,000 + SubcontractingHUB Subcontracting Plan
12 Statutory Requirements for HUB Participation TX GOVERNMENT CODE. CHAPTER 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
14 Administrative HUB Rules Texas Administrative Code. Title 34. Part 1. Chapter 20. Subchapter B.Rule – 20.2820.11 Policy and Purpose20.12 Definitions20.13 Annual Procurement Utilization Goals20.14 Subcontractors20.15 Agency Planning Responsibilities20.16 State Agency Reporting Requirements20.17 Certification Process20.18 Protest20.19 Recertification20.20 Revocation20.21 Certification and Compliance Reviews20.22 Texas Historically Underutilized Business Certification Directory20.24 Program Review20.25 Memorandum of Understanding between the Department of Economic Development and the Texas Comptroller of Public Accounts20.26 HUB Coordinator Responsibilities20.27 HUB Forum Programs for State Agencies20.28 Mentor Protégé ProgramRules 20.11, 20.13, and involve HUB policy and procedures in state agency procurement/contracting processes
15 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
16 HHSC Requirements for HUB Participation HUB Subcontracting Plan (HSP) Determination of HUB ProbabilityInclusion of the HSPDevelopment and Submission of HSPHSP Evaluation and FindingsVendor ConferenceHSP OverviewHUB Post Award Meeting
17 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
18 Inclusion of the HSP Managed by HUB Coordinators =Contract over $100,000 + SubcontractingHUB Subcontracting PlanThe 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
19 Development and Submission of the HSP Managed by RespondentsThe 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 relating to Development and Submission of the HSP.
20 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).
21 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.
35 Written Notification Requirements HSP Information PageSection 6(c):Written Notification Requirements
36 List 3 HUBs Contacted for this Subcontracting HSP Information PageSection 7:List 3 HUBs Contacted for this SubcontractingOpportunity
37 HSP Information Page Section 8: List Subs Selected (HUBs & Non-HUBs) for this Subcontracting Opportunity
38 Reason why HUB was not selected for this Subcontracting Opportunity HSP Information PageSection 8:Reason why HUB was not selected for this Subcontracting Opportunity
39 Self Performance Explanation Section 9:Self Performance ExplanationHSP Information Page
40 HSP Information PageSection 10: Signature Affirms that True and Correct Information is Provided
41 HSP Prime Contractor Progress Assessment Report ATTACHMENT “E”HSP Prime Contractor Progress Assessment ReportRequired withALL Pay RequestsList ALL Sub payments(HUBs & Non-HUBs)
42 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.
43 Administrative Services Development HUB Program Office Robert L. Hall, C.P.M.Director of Administrative Services Development- (512)-Carlos A. BalderasASD HUB Administrator- (512)-Sherice V. Williams-Patty- (512)-Sharon AddisonASD Procurement / HUB Program Team Leader- (512)-