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HUB Participation and HUB Subcontracting Plan Requirements Training Administrative Services...

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HUB Participation and HUB Subcontracting Plan Requirements Training Administrative Services Development HUB Program Office Slide 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 Slide 3 HUB Program Mission, Goals And Objectives Slide 4 HUB Program Mission State of Texas Disparity Study Goals Utilization of HUBs in procurement and contracting processes Contract DirectlyContract Indirectly (Subcontracting) Slide 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 20.11 and Rule 20.13. Slide 6 Statutory Requirements for HUB Participation Slide 7 What is a HUB? Slide 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) 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 persons 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. Slide 9 Statutory Requirements for HUB Participation Texas Legislature TX GOVERNMENT CODE. CHAPTER 2161.002 (2) (C). HISTORICALLY UNDERUTILIZED BUSINESSES. SUBCHAPTER A. TX Comptroller of Public Accounts TX GOVERNMENT CODE. CHAPTER 2161.003. HISTORICALLY UNDERUTILIZED BUSINESSES. SUBCHAPTER A. State Agencies and Institutions of Higher Education Rules apply to the Agencys 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. Slide 10 Statutory Requirements for HUB Participation Good faith effort to increase contract awards during a fiscal year to historically underutilized businesses TX GOVERNMENT CODE. CHAPTER 2161.181 182. HISTORICALLY UNDERUTILIZED BUSINESSES. SUBCHAPTER D. STATE AGENCY PURCHASING GOALS Contract directly or indirectly HUB Disparity Goals. Slide 11 Statutory Requirements for HUB Participation HUB Subcontracting Plan TX GOVERNMENT CODE. CHAPTER 2161.252. HISTORICALLY UNDERUTILIZED BUSINESSES. SUBCHAPTER D. AGENCY DETERMINATION REGARDING SUBCONTRACTING OPPORTUNITIES Contract over $100,000 + Subcontracting = Slide 12 Statutory Requirements for HUB Participation TX GOVERNMENT CODE. CHAPTER 2161.253. HISTORICALLY UNDERUTILIZED BUSINESSES. SUBCHAPTER D. GOOD FAITH COMPLIANCE WITH BUSINESS SUBCONTRACTING PLAN. HUB Subcontracting Plan HUB Subcontracting Plan (HSP): The HSP is included as a part of the contract. Good faith effort to implement the plan during the term of the contract. Slide 13 Administrative HUB Rules Slide 14 Rules 20.11, 20.13, and 20.14 involve HUB policy and procedures in state agency procurement/contracting processes Texas Administrative Code. Title 34. Part 1. Chapter 20. Subchapter B. Rule 20.11 20.28 20.11 Policy and Purpose 20.12 Definitions 20.13 Annual Procurement Utilization Goals 20.14 Subcontractors 20.15 Agency Planning Responsibilities 20.16 State Agency Reporting Requirements 20.17 Certification Process 20.18 Protest 20.19 Recertification 20.20 Revocation 20.21 Certification and Compliance Reviews 20.22 Texas Historically Underutilized Business Certification Directory 20.24 Program Review 20.25 Memorandum of Understanding between the Department of Economic Development and the Texas Comptroller of Public Accounts 20.26 HUB Coordinator Responsibilities 20.27 HUB Forum Programs for State Agencies 20.28 Mentor Protg Program http://info.sos.state.tx.us/pls/pub/readtac$ext.ViewTAC?tac_view=5&ti=34&pt=1&ch=20&sch=B&rl=Y Slide 15 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. Slide 16 HHSC Requirements for HUB Participation 1. HUB Subcontracting Plan (HSP) Determination of HUB Probability 2. Inclusion of the HSP 3. Development and Submission of HSP 4. HSP Evaluation and Findings 5. Vendor Conference 6. HSP Overview 7. HUB Post Award Meeting Slide 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 Slide 18 Inclusion of the HSP Managed by HUB Coordinators 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 Contract over $100,000 + Subcontracting = HUB Subcontracting Plan Slide 19 Development and Submission of the HSP 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. Managed by Respondents Slide 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 agencys 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). Slide 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. Slide 22 HUB Subcontracting Plan (HSP) Overview Slide 23 If HSP is inadequate, response will be rejected HSP Information Page Slide 24 HUB GOALS Slide 25 Special reminders and instructions HSP Information Page Slide 26 Section 1: Company Information HSP Information Page Slide 27 Section 2: Subcontracting Declaration Or Self Performance Declaration HSP Information Page Slide 28 If more than 20 subcontracting opportunities, click the link provided to continue adding HSP Information Page Section 2: Enter subcontracting opportunities Slide 29 One page for each area subcontracted (listed on page 1) HSP Information Page Slide 30 Section 3: List Line # and Subcontracting Opportunity HSP Information Page Slide 31 Section 4: Protg performing the work HSP Information Page Section 8: Skip to Sections 8 and 10 Slide 32 Section 5: Professional Services Category HSP Information Page Slide 33 Section 6(a): Good Faith Efforts to find/include Texas Certified HUB Vendors HSP Information Page Slide 34 Section 6(b): Contact HUB Trade Organization HSP Information Page Slide 35 Section 6(c): Written Notification Requirements HSP Information Page Slide 36 Section 7: List 3 HUBs Contacted for this Subcontracting Opportunity HSP Information Page Slide 37 Section 8: List Subs Selected (HUBs & Non-HUBs) for this Subcontracting Opportunity HSP Informatio

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