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

2. 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

3. HUB Program Mission, Goals
And Objectives

4. 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

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:
11.9% 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 and Rule

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
“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 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.

10. Statutory Requirements for HUB Participation
TX GOVERNMENT CODE. CHAPTER – 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.

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

13. Administrative HUB Rules

14. Administrative HUB Rules
Texas Administrative Code. Title 34. Part 1. Chapter 20. Subchapter B.
Rule – 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 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 Probability
Inclusion of the HSP
Development and Submission of HSP
HSP Evaluation and Findings
Vendor Conference
HSP Overview
HUB 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 + 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

19. 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 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.

22. HUB Subcontracting Plan (HSP) Overview

23. If HSP is inadequate, response will be rejected
HSP Information Page

24. HUB GOALS
HSP Information Page

25. Special reminders and instructions
HSP Information Page
Special reminders and instructions

26. HSP Information Page
Section 1:
Company
Information

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

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

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

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

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

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

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

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

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

36. List 3 HUBs Contacted for this Subcontracting
HSP Information Page
Section 7:
List 3 HUBs Contacted for this Subcontracting
Opportunity

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

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

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

41. 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)

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. Balderas
ASD HUB Administrator
- (512) -
Sherice V. Williams-Patty
- (512) -
Sharon Addison
ASD Procurement / HUB Program Team Leader
- (512) -