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Historically Underutilized Businesses (C-16.5)

Original Implementation: August 2, 1994
Last Revision: April 13, 2006

MISSION

The mission of the Stephen F. Austin State University Historically Underutilized Business (HUB) program is to insure that all vendors, including Historically Underutilized Businesses, receive full and equal opportunity to participate in contracting opportunities through race-, ethnic-, and gender-neutral policies.

COMMITMENT

In accordance with Texas Government Code, Title 10, Subtitle D, Chapter 2161, and 1 Texas Administrative Code §111.11-111.28, Stephen F. Austin State University will make a good faith effort to utilize Historically Underutilized Businesses (HUBs) in contracts for construction, services, including professional and consulting services, and commodities contracts. The University is committed to making a good faith effort to increase business with HUBs by setting goals that recognize both underutilized and overutilized businesses identified in the State of Texas Disparity Study.

Heavy Construction other than building contracts

Underutilized Goals - 6.6% (BL, HI, AS, AI)

Overutilized Goals - 5.3% (WO)

Building Construction including general contractors and operative builders contracts

Underutilized Goals - 25.1% (BL, HI, WO)

Overutilized Goals - 1.0% (AS, AI)

Special Trade construction contracts

Underutilized Goals - 47.0% (BL, HI)

Overutilized Goals - 10.2% (AS, AI, WO)

Professional Services Contracts

Underutilized Goals - 18.1% (BL, HI, WO)

Overutilized Goals - 1.9% (AS, AI)Other Services contracts

Underutilized Goals - 33.0% (BL, HI, AS, AI, WO)

Overutilized Goals - None

Commodities contracts

Underutilized Goals - 11.5% (BL, HI, WO)

Overutilized Goals - 1.1% (AS, AI)

AI-American Indian AS-Asian American;  BL-Black American;  HI-Hispanic American;  WO-Woman

ADMINISTRATION

The Director of Purchasing and Inventory shall serve as the official HUB Coordinator, executing all responsibilities associated with the position, and ensuring full participation in the HUB program by the Purchasing Department and that purchasing policies are written to ensure HUBs have maximum opportunity to participate in all procurement opportunities.

GOALS

In development of a HUB plan in accordance with Texas Government Code, Chapter 2161.123, the University has established the following goals and specific programs.

Goal #1

The University will ensure that best value procurement policies regarding solicitations are written to meet or exceed the State's HUB solicitation requirements.

  1. Solicitations over $5,000, but less than $25,000 will include a minimum of three informal solicitations, with no less than 50% being HUB's

  2. Solicitations over $25,000 will include a minimum of five formal solicitations, with no less than 50% being HUB's.

  3. Formal solicitations will be posted to the Purchasing Department web site.

  4. Solicitations exceeding $25,000 will be posted to the Texas Marketplace.

  5. Solicitations $100,000 and greater will require a HUB Subcontracting Plan (HSP) to be submitted as required by 1 TAC Section 111.14. See Goal #3.

  6. Solicitations $50,000 to $100,000 will be reviewed for subcontracting opportunities, and if appropriate, the solicitation will require a HUB Subcontracting Plan (HSP) to be submitted in accordance with the TBPC HUB Subcontracting Plan requirements.

  7. Opportunities for subcontractors will be posted on the SFA Purchasing web-site and on the Texas Marketplace, as required by prime contractor contracts.

Goal #2

The University will pursue various forms of outreach to identify HUB vendors and non-certified minority and women-owned businesses with which to develop a business relationship. Non-certified minority and women-owned businesses will be advised of and/or assisted with the State's certification process.

  1. The University Purchasing Department will host a vendor fair at which vendors across the state will be invited to participate. Vendors will be provided with information regarding how to do business with the University, as well as information about the HUB certification process, and other state rules and guidelines. The University campus, other state agencies, ISD's, and city and county governments will be invited to attend. HUB vendors will be clearly identified on their company label and in the program. Other state agencies will be invited to co-host and attend.

  2. The HUB Coordinator and/or Purchasing Department buyers will attend and participate in economic opportunity forums in the Houston, Dallas and Austin Metroplexes and East Texas. HUB vendor information from these forums will be disseminated to all Purchasing Department buyers as well as targeted end users.

  3. The University Purchasing Department will utilize the HUB directory provided by TBPC on-line when soliciting potential suppliers and subcontractors for commodities, services, and construction contracts.

  4. The HUB Coordinator will work with the local chamber and other minority chambers and/or business organizations to present upon request a seminar on how to do business with the University.  The seminar will include the University's HUB program and information about the HUB certification process.

  5. The University Purchasing Department will send a mail piece to all new Texas vendors added to the University's vendor database advising them of the State's HUB certification process.

  6. The University will host at least four (4) HUB vendors per year at a HUB forum(s) at which the HUB vendor(s) will be invited to present their business to appropriate procurement personnel from the Purchasing Office as well as end users with delegated purchasing authority. When appropriate, contracted construction managers or architect/engineers will be invited to attend.

  7. The University will work with prime contractors assisting them in identifying HUBs, providing lists of potential subcontractors from the TBPC Centralized Master Bidder's Lists, and posting subcontracting opportunities on the SFA web-site.

Goal #3

Stephen F. Austin State University will seek to contract with HUBs indirectly through subcontracting opportunities in accordance with Texas Government Code, Chapter 2161, Subchapter F and Commission HUB Rules, 1 TAC Section 111.14.

  1. Solicitations $100,000 or greater will include the TBPC HUB Subcontracting Plan (HSP) requirements. Respondents will be required to submit a HUB Subcontracting Plan (HSP) as required by the solicitation documents in order for the response to receive consideration.

  2. Cooperative and emergency procurements completed without a solicitation and valued at $100,000 or greater will include HUB Subcontracting Plan (HSP) requirements.

  3. Contractors will be provided information about the University's mentor-protégé program at pre-bid conferences and/or at the time of award of contracts valued at $100,000 or greater.

  4. Construction contracts will require the Prime Contractor to provide subcontractor bid opportunities to the HUB Coordinator for posting on the SFA Purchasing web-site and on the Texas Marketplace.

Goal #4

The University will establish educational training for personnel making procurement decisions to assure compliance with stated objectives

  1. The University Purchasing Department will conduct training seminars for all campus departments advising them of all current purchasing policies and procedures, including HUB good faith effort requirements.

  2. ProCard training will include an emphasis on the need to make small purchases from HUBs.

  3. The Purchasing Department will use the TBPC listing to provide HUB resources for SFA departments.

Goal #5

The University will gather HUB data to comply with state reporting requirements.

  1. Semi-annual and annual report data will be submitted within the timeframe and in the format required by TBPC.

  2. Semi-annual and annual reports will be scrutinized closely for correct vendor number data.

  3. HUB Subcontracting information will be compiled on a monthly basis and reported semi-annually and annually.

  4. Monthly HUB reports will be submitted to the President of the University providing HUB expenditure data for each vice presidential division and including individual department contributions to the University's overall HUB percentage.

Goal #6

The University will maintain a program to foster long-term relationships between leaders of mature established companies and emerging minority and women owned companies (that are HUB certified or eligible to be HUB certified) in order for the latter to benefit from the knowledge and experience of the established firm.

  1. The University offers a Mentor-Protege program patterned after the TBPC program and in accordance with Government Code 2161.065.

  2. The University will sign Memorandums of Understanding with organizations such as SCORE and the Angelina Procurement Assistance Center to assist in developing the mentor-protégé agreement and analyzing the protégé's business plan.

  3. The University's Mentor-Protégé program will be advertised at all HUB Economic Opportunity Forums attended.

  4. Vendors with whom expenditures of $100,000 or more are recorded annually will receive an annual mailing with information about the University's mentor-protégé program requesting that they consider participating.

Source of Authority: Board of Regents, President, Vice President for Finance and Administration

Cross Reference: Texas Government Code, Title 10, Subtitle D, Chapter 2161; and Texas Administrative Code, sections 111.11 through 111.28, Policy C-7 Best Value Procurement

Contact for Revision: Director of Purchasing and Inventory/HUB Coordinator

Forms: None