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Procurement and Contracting Services HUB Program Office

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

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Procurement and Contracting Services HUB Program Office

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  1. Procurement and Contracting Services HUB Program Office Historically Underutilized Businesses (HUB) Participation and HUB Subcontracting Plan (HSP) Requirements

  2. Health and Human ServicesHUB Participation Requirements • HHS HUB Program Mission, Goals and Objective • Statutory Requirements for HUB Participation • Administrative HUB Rules • HHS Requirements for HUB Participation

  3. HUB Program Mission, Goals And Objectives

  4. 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.

  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 • 32.7% 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.

  6. Statutory Requirements for HUB Participation

  7. What is a HUB?

  8. Statutory Requirements for HUB Participation TX GOVERNMENT CODE. CHAPTER 2161.001. 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) or Service Disabled Veteran • EDP actively participates in the business’ control, operation, and management

  9. 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.

  10. 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.

  11. 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.

  12. 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).

  13. 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.  

  14. 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.

  15. Administrative HUB Rules

  16. Administrative HUB Rules Texas Administrative Code. Title 34. Part 1. Chapter 20. Subchapter B. Rule 20.11 – 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, 20.14, and 20.16 involve HUB policy and procedures in state agency procurement/contracting processes

  17. 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.

  18. 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.

  19. 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.

  20. HHS Requirements for HUB Participation • 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

  21. HSP Determining the Probability for SubcontractingManaged 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;

  22. 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.

  23. Inclusion of the HSPManaged 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.

  24. 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.

  25. HSP Evaluation and FindingsManaged 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.

  26. 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).

  27. HHS Requirements for HUB Participation

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

  29. 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

  30. 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

  31. HUB Subcontracting Plan (HSP) Development and Submission

  32. 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. HSP Quick Checklist (cut and paste in URL) http://www.hhsc.state.tx.us/about_hhsc/BusOpp/HUB/HSP-Quick-Check-List.pdf

  34. HSP Development and Submission Requirements • HSP Methods; • Quick Checklist

  35. HUB Participation Requirements HSP Methods

  36. 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;

  37. 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.

  38. 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

  39. HSP Information Page Respondent and Requisition Information

  40. Company Name and Requisition # Subcontracting Intentions: If Yes, Complete Section 2a If No, Complete Section 2b

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

  42. 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.

  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 SubcontractingOpportunities in 2-b.

  44. 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 SubcontractingOpportunities in 2-b.

  45. HSP GFE Method A (Attachment A) Complete this attachment (Sections A-1 and A-2) and List Line # and Subcontracting Opportunity. HUBSubcontractor Selection for this Subcontracting Opportunity

  46. 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.

  47. 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.

  48. HSP GFE Method B (Attachment B) Complete Sections B-1; and B-2 only for each HUB Protégé subcontracting opportunity.

  49. HSP GFE Method B (Attachment B) List the HUB Protégé(s)

  50. 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.

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