Developing a Successful HUB Program

Presented By:

Norma Barrera

Texas Education Agency

West Texas Business Summit 2013

Hosted By: Texas Tech University

Lubbock, Texas

Developing a Successful HUB Program

Developing a Successful HUB ProgramAgenda

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Commitment

Matchmaking

Best Practices

Set Metrics and Check Monthly

Leadership

Establish Goals

Education

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Developing a Successful HUB Program Agenda

Mentor-Protégé Teams

Reporting 2nd & 3rd Tier

Challenges

Certification

Reporting 2nd & 3rd Tier

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EOFs / HUB Forums

• Support from the top • Adopt a “HUB Business Policy”• Acceptance of the program starts with you• Without visible support most programs are

stagnant

1. Commitment

• HUB Coordinator needs strong organizational & communication skills

• Understand the agency’s procurements• Liaison between buyers, HUBs, and prime

vendors• Coach and mentor all three groups

2. Leadership

Definition – Methods that consistently indicate results are superior or in process of being superior.

• Add a HUB section on your website• Talk with other HUB Coordinators• CPA HUB Rules

3. Best Practices

• Research your HUB Report • Select the categories you want to improve • Identify your goals for key areas and set a

time period to accomplish • Track improvement

4. Establish Goals

• Track metrics – revise policies, enhance the level of outreach efforts or increase %

• Track expenditures by contract, departments, or cost centers

• Check in with senior management on the status

5. Set Metrics

• Increasing involvement within your organization is key to your HUB Program

• Get buyers involved so they can develop relationships and help create ways to partner with HUBs

• Promote success stories internally & at your forums

6. Education

HUB & Procurement Teams = 1

The Buyers are vital in the process, they get to know the HUBs and provide them key information about your agency’s or university’s procurements. The Buyers will have a better understanding of the HUBs capabilities, products and services.

• Help Primes identify HUB firms• Help HUBs identify Primes• Set up Specialized Forums • Procurement Roundtables• Keep in Communication with the Groups

7. Matchmaking

1. Leadership starts at the agency / university.

2. Commitment is within all the groups

3. In the Decision Making process it is important to consider all possible solutions that is how you run your HUB Program.

4. Minority firms can offer new opportunities and fresh perspective in the procurement.

5. Primes shouldn’t limit themselves to few options, they should perform due diligence and explore many choices.

Relationships

Agency

Subcontractors

Prime

• HUBs are small businesses and some primes may overlook their ability to add value

• Primes can help HUBs meet their own contracting standards

• Be involved in the meetings

8. Mentor-Protégé Teams

• Research the lists of current subcontractors

• Many companies may qualify as a HUB but have not taken the steps to become certified

• You may be able to increase HUB % by simply assisting them to get certified

9. Certification

• Your database & other tools provide a good summary, but you must be actively engaged for improvement and in seeking HUBs in your procurements

• Host a procurement conference for buyers and suppliers to interface

• Host a meet the “Prime”

10. EOF / HUB Forums

Use testimonials at your Forums. Promote success stories. Have you helped a HUB to grow and expand? Did a HUB win a contract? Which buyer had the most % of HUBs in a contract that month. Highlight Mentor-Protégé teams.

Networking

Reach out to other HUB

Coordinators

Survey the buyers, HUBs,

primes

Learn about strategies that are effective

• A tier 1 vendor is the entity you contracted with to provide the goods/services = Prime

• A tier 2 vendor is the entity that provides a good/service to the Prime in relation to your contract = Subcontractor

• A tier 3 vendor is the entity that provides a good/service to the Subcontractor

• Report thru the PAR

11. Reporting 2nd & 3rd Tier

• Direct-spend 2nd/3rd tier purchasing refers to those products and services that can be identified in support of the customer’s requirements.

• Indirect-spend 2nd/3rd tier purchasing refers to those products and services that cannot be identified in support of the customer’s requirements.

11. Reporting 2nd & 3rd Tier

Progress Chart – Keep it Visible

HUB Goal

$1MSept

$4MMarch

$6.8MAugust

• Commitment (lack of) • Time • Acceptance • Progress is slow• HARD WORK

12. Challenges

A Successful HUB Program

Saves Money

Creates Jobs

Attracts Vendors

Improving Your HUB ProgramOverview

Commitment

Matchmaking

Best Practices

Set Metrics and Check Monthly

Leadership

Establish Goals

Education ✓

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Your Improving Your HUB ProgramOverview

Mentor – Protégé Teams

EOFs / HUB Forums

Challenges

Certification

Reporting 2nd & 3rd Tier

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Your own footer

• Educate your agency / university -Engage the procurement team & prime

vendors Get buy-in

• Analyze your HUB Report -Set goals & metrics with a fresh set of

eyesPublish results

Closing

THANK YOU

• The information provided will help Develop a Successful HUB Program

or

• Provide ideas to improve your current HUB Program

THANK YOU!

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