HomeMy WebLinkAboutTexas A&M Historically Underutilized Business (HUB) Program
Texas A&M University
Historically Underutilized Business (HUB) Program
In 1994, the Texas Legislature commissioned a Disparity Study to determine past and
current disparity among women and minority-owned businesses in the State of Texas. As a
result, a statewide HUB Program was developed and mandates each State of Texas agency
and institution of higher education to comply with all aspects of the program. From this
th
study legislators enacted Senate Bill 178 of the 76 Legislature, which encourages the use
of historically underutilized businesses (HUBs) in service and commodity purchases.
Texas Government Code, Sections 2161.181 and 2161.182, mandates that State of Texas
agencies make a good faith effort to contract with HUB vendors, directly or indirectly, to
achieve annual procurement goals.
The Historically Underutilized Business (HUB) Program at Texas A&M University assists
the university in achieving its HUB goals by promoting HUB participation in all
procurement opportunities. The HUB Program office works to develop and implement
positive HUB vendor relationships with the university and establishes the direction of the
HUB Program by developing and promoting effective HUB strategies to best achieve
university goals specified by the State of Texas, Texas A&M University System Board of
Regents and university senior executives.
HUB eligibility criteria includes the following:
Ethnicity
U.S. Citizenship
Texas Residency
Ownership
Active participation, control and proportionate interest
Principle place of business
Criteria Defined
Ownership
A HUB vendor is described as a corporation, sole proprietorship or joint venture in which 51
percent of the shares of stock or other equitable securities are owned by one or more persons who
are members of the following groups: Black American, Hispanic American, American Women,
Asian Pacific American, Native American. The individual(s) meeting these criteria must be a
resident of the State of Texas and a U.S. Citizen.
Sole proprietorships are required to be 100% owned and controlled by a HUB vendor. Each entity
is a joint venture is required to be a HUB.
Statute definitions are listed below.
Historically Underutilized Business--A business outlined in subparagraphs (C)-(H) with its principal
place of business in Texas (as defined in paragraph (19) of this section) in which the owner(s):
(A) have a proportionate interest and demonstrate active participation in the control, operation,
and management of the entities' affairs; and
(B) are economically disadvantaged because of their identification as members of the following
groups:
(i) Black Americans--includes persons having origins in any of the Black racial groups
of Africa
(ii) Hispanic Americans-- includes persons of Mexican, Puerto Rican, Cuban, Central
or South American, or other Spanish or Portuguese culture or origin, regardless of
race
(iii) American Women--includes all women of any ethnicity except those specified in
clauses (i), (ii), (iv), and (v) of this subparagraph
(iv) Asian Pacific Americans--includes persons whose origins are from Japan, China,
Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Samoa, Guam, the U.S.
Trust Territories of the Pacific, the Northern Marianas, and Subcontinent Asian
Americans which includes persons whose origins are from India, Pakistan,
Bangladesh, Sri Lanka, Bhutan or Nepal
(v) Native Americans--includes persons who are American Indians, Eskimos, Aleuts,
or Native Hawaiians
Active Participation, Control, and Proportionate Interest
A review of the business’ documentation must substantiate that the eligible HUB owners are actively
participating in the date-to-day operations of the business at a level that is commensurable to their
ownership interest.
The business’ documentation is also required to substantiate that the eligible HUB owners are able
to make independent and unilateral business decisions (i.e., administrative activities, management
personnel, negotiation and execution of contracts, and negotiation and execution of financial
transactions and agreements), which guide the future and destiny of the business. Absentee or
titular ownership by the eligible HUB owners who do not take an active role in controlling the
business is not consistent with the HUB eligibility standards.
Principal Place of Business
Effective September 1, 1999, in accordance with the implementation of S.B. 178, businesses that do
not have their primary headquarters in the State of Texas are not eligible for HUB certification.
According to the Texas Government Code, Section 2161.001, Historically Underutilized Business
(HUB) is defined as an entity with its principal place of business in the State of Texas.
Goals
The Texas A&M University Historically Underutilized Business Program, along with the
Department of Purchasing Services strives to achieve the annual procurement goals by contracting
directly with HUBs or indirectly through subcontracting opportunities. The Texas Building and
Procurement Commission goals by category are as follows.
Goals:
Goal Category
11.9% heavy construction other than building contracts
$47,090.00*
26.1% building construction, including general contractors and operative contracts
$6,642,810.00*
57.2% special trade construction contracts
$1,172,099.00*
20% professional services contracts
$629,843.00*
33% all other services contracts
$45,748,438.00*
12.6% commodities contracts
$85,836,203.00*
*These are approximate dollars spent in the respective category for fiscal year 2002.
Business Opportunities
Purchases totaling $5000.00 or less are delegated to individual departments. Purchases over
$5000.00 are sent to the Department of Purchasing Services and sent out for solicitation.
Solicitations include Invitations for Bid, Request for Proposals and Catalogue Offers.
Purchases totaling $25,000.00 or more are listed on the Texas Building and Procurement
Commission Electronic State Business Daily website located at http://esbd.tbpc.state.tx.us. Each
solicitation is listed by agency.
The Statewide bidders list, the Centralized Master Bid List (CMBL), is managed by the Texas
Building and Procurement Commission. Cost to be on the CMBL is $50.00 per year. The
website for the CMBL is http://www.tbpc.state.tx.us/cmbl/index.html.
Keep your information current and correct on the CMBL!
All vendor financial information and social security numbers are kept confidential.
Bid Summaries are always available to the Public. Vendors should request one for each and
every bid to which they respond to know if they are competitive.
Vendor is responsible for making sure all terms and conditions are complied with and the good
or service is delivered in accordance with the solicitation.
Invoices must be presented exactly as stated on the Purchase Order.
If there is a problem with your invoice, payment will be delayed.
All payments to vendors must be made no later than 30 days after the goods have been received,
accepted, and the department has received the invoice.
If the invoice received is incorrect, the department has 30 days from receipt of the correct
invoice to make payment.
If the payment is late, an amount equal to 1% of the net due is automatically added to the
payment.
Texas A&M University is prohibited from issuing orders or making payments to vendors who
are not in good standing with the State Comptroller’s Office, i.e., “Warrant Hold”
Vendor’s status is checked prior to issuing a purchase order. You can check your status at the
following website: http://ecpa.cpa.state.tx.us/vendor/tpsearch1.html
Certification Process
Any business seeking certification, as a historically underutilized business must submit an application
to the Texas Building and Procurement Commission, affirming under penalty of perjury that the
business qualifies as a historically underutilized business. If requested, the applicant must provide
any and all materials and information necessary to demonstrate active participation in the control,
operation, and management of the historically underutilized business.
Texas Government Code, §2161.231, states that a person commits a felony of the third degree if the
person intentionally applies as a historically underutilized business for an award of a purchasing
contract or public works contract and the person knowingly does not meet the definition of a
historically underutilized business.
The Texas Building and Procurement Commission certifies all applicants as a historically
underutilized business or provides the applicant with written justification of its denial of certification
within 90 days after the date the commission receives a satisfactorily completed application from the
applicant. An application may be rejected for the following reasons.
(1) the application is not satisfactorily completed
(2) the applicant does not meet the requirements of the definition of historically underutilized
business
(3) the application contains false information
(4) the applicant does not provide required information in connection with the certification
review conducted by the commission
(5) the applicant's record of performance of any prior contracts with the state.
(6) Texas Building and Procurement Commission will send all certified HUBs an orientation
packet including a certificate, description of certification value/significance, list of agency
purchasers, and information regarding electronic commerce, the Texas Marketplace, and the
state procurement process.
Inclusion Activities
Recruiting Partnership
Established recruiting partnership with the B-CS Chamber of Commerce and the Small Business
Development Center to develop the recruiting and the certification of minority vendors in the Bryan –
College Station area.
Department Training
Training geared to department personnel responsible for purchases less than $5000.00. Training covers HUB
practices and procedures. Training includes explanation and overview of Senate Bill 178, the Good Faith
Effort requirements and use of the HUB Vendor directory. The class also covers specifics on locating and
utilizing HUB vendors, locating products supplied by minority vendors on university wide agreements and
how to identify HUB vendors.
HUB Directory
The HUB Directory was developed for and is used by the campus community to solicit HUB vendors. This
directory is located on both the HUB Program we site and the Department of Purchasing Services web site
and includes a category listing of HUB vendors. Categories are Athletic Equipment, Audio/Video
Equipment, Computer and Computer Peripherals, Construction/Renovations, Copiers/Office Machines,
Food Services, Furniture, Maintenance/Repair/Operations Supplies, Medical Supplies and Equipment,
Office Supplies, Promotional Items, Safety Supplies and Equipment, Scientific Supplies and Equipment,
Services, Software, Vehicles/Fuels, Veterinary Supplies and Equipment, and Other. Vendor information
includes vendor name, identification number, address, HUB status, contact person, phone number, fax
number and email address. Directory also includes a complete listing of vendor products and links to the
Comptroller’s tax status. The HUB Program web site is http://hubs.tamu.edu. The Department of
Purchasing Services website is http://purchasing.tamu.edu.
Mentor Protégé Program
In accordance with the Texas Government Code, Section 2161.065, Texas A&M University has designed a
Mentor Protégé Program to encourage long-term relationships between vendors and Historically
Underutilized Businesses (HUBs). The goal of the program is to increase the ability of HUBs to contract
with the state and/or receive subcontracts. The Mentor Protégé Program provides professional guidance and
support to HUBs and facilitates their development and growth.
Contact Information
For more information regarding the Texas A&M University Historically Underutilized Business Program,
contact the following:
Barbara Clemmons Rex Janne
Director Director
Historically Underutilized Business Program Department of Purchasing Services
Texas A&M University Texas A&M University
b-clemmons@tamu.edu r-janne@tamu.edu
979-458-4827 phone 979-845-3425 phone
Useful Websites
HUB Program Website
http://finance.tamu.edu/hub/
Department of Purchasing Services HUB Directory
http://purchasing.tamu.edu
Texas Building and Procurement Commission HUB Program
http://www.tbpc.state.tx.us/hubbid/hubindex.html
HUB Rules
http://info.sos.state.tx.us:80/pub/plsql/readtac$ext.ViewTAC?tac_view=5&ti=1&pt=5&ch=111&
sch=B&rl=Y
HUB Vendor Application
http://www.tbpc.state.tx.us/hub/forms/hubappl.pdf
Electronic State Business Daily on the Texas Marketplace
http://esbd.tbpc.state.tx.us
Commodity Code Book
(Listing of Class and Item Codes needed to complete the HUB Certification Application
-Numerical Listing – http://www.tbpc.state.tx.us/com_book/index.html
-Alphabetical Listing – http://www.state.tx.us/com_book/com_index.html
Centralized Master Bidder’s List
http://www.gsc.state.tx.us/cmbl/index.html9
Economic Opportunity Forums
http://www.gsc.state.tx.us/hub/eofinfo.html
HUB Reports FY 2002
http://www.tbpc.state.tx.us/hub/hub_report/fy2/index.html