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HUB Policy Summary of Requirements

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If you have questions or need assistance, contact:

Muriel D. Kruse
512-475-6856

It is the policy of The University of Texas System, and each of its component institutions, to promote and encourage contracting and subcontracting opportunities for historically underutilized businesses (HUBs) in all contracts. Accordingly, The University of Texas at Austin Project Management and Construction Services (PMCS) department has adopted “Exhibit H, Policy on Utilization of Historically Underutilized Businesses.” The Policy applies to all contracts with an expected value of $100,000 or more. The Board of Regents of The University of Texas System is the contracting authority. The following is a summary of our policy requirements:

  1. In all contracts for professional services, contracting services, and/or commodities with an expected value of $100,000 or more, PMCS will indicate in the purchase solicitation (e.g., RFQ, RFP, or CSP) whether or not PMCS has determined that subcontracting opportunities are probable in connection with the contract. A HUB Subcontracting Plan (PDF) is a required element of the professional/contractor/vendor's response to the purchase solicitation. The HUB Subcontracting Plan shall be developed and administered in accordance with the policy. Failure to submit a required HUB Subcontracting Plan will result in rejection of the response. [Procedure a.]
  2. If subcontracting opportunities are probable, PMCS will declare such probability in its invitations for bids, requests for proposals, or other purchase solicitation documents, and shall require submission of the appropriate HUB Subcontracting Plan with the response. [Procedure b.]
    1. When subcontracting opportunities are probable, and the respondent proposes to subcontract any part of the work, the respondent shall submit a HUB Subcontracting Plan that includes Attachments A, B, C, D, and E identifying first and second tier subcontractors as applicable. [Procedure b.(1)]
    2. When subcontracting opportunities are probable, but the respondent can perform such opportunities with its employees and resources, the respondent's HUB Subcontracting Plan shall include Attachments F, B, and G. [Procedure b.(2)]
  3. If subcontracting opportunities are not probable, PMCS will declare such probability in its invitations for bids, requests for proposals, or other purchase solicitation documents and shall require submission of the appropriate HUB Subcontracting Plan with the response. [Procedure f.]
    1. When subcontracting opportunities are not probable, and the respondent proposes to perform all of the work with its employees and resources, the Respondent shall submit a HUB Subcontracting Plan that includes Attachments F, B, and G. [Procedure f.(1)]
    2. When subcontracting opportunities are not probable, but the respondent proposes to subcontract any part of the work, the respondent shall submit a HUB Subcontracting Plan that includes Attachments A, B, C, D, and E identifying first and second tier subcontractors as applicable. [Procedure f.(2)]
  4. The respondent shall submit a HUB Subcontracting Plan within twenty-four (24) hours of the response submission date and time [Procedure b.(3)].
  5. Respondents shall follow, but are not limited to, procedures listed in the policy when developing a HUB Subcontracting Plan. [Procedure e.]
  6. In making a determination whether a good faith effort has been made in the development of the required HUB Subcontracting Plan, PMCS shall follow the procedures listed in the policy. If accepted, the HUB Subcontracting Plan shall become a provision of the respondent's contract with PMCS. No changes may be made in an accepted HUB Subcontracting Plan prior to incorporation in the contract. [Procedures g. and h.]
  7. D/B and CM @ Risk Responses: Respondents to a "design-build" or "construction manager-at-risk" purchase solicitation shall include a letter in their response attesting that the respondent has read and understands the Policy on Historically Underutilized Businesses (HUBs), and a HUB Subcontracting Plan for all Part I, Preconstruction Phase Services, that includes Attachments A, B, C, D, E, and J identifying first and second tier subcontractors as applicable. [Procedure p.]
  8. D/B and CM @ Risk HUB Contract Requirements: Contractors engaged under “design-build” and “construction manager-at-risk” contracts shall submit a HUB Subcontracting Plan for all Part II, Construction Phase Services, when the guaranteed maximum or lump sum price of the project is established, and must further comply with the requirements of this policy by developing and submitting a HUB Subcontracting Plan for each bid package issued in buying out the guaranteed maximum or lump sum price of the project. The HUB Subcontracting Plans shall include Attachments A, B, C, D, and E identifying first and second tier subcontractors as applicable. [Procedure q.]
  9. PMCS shall reject any response that does not include a fully completed HUB Subcontracting Plan, as required, as a material failure to comply with the solicitation for proposals. [Procedures c., i.]
  10. If at any time during the term of the contract, a professional/contractor/vendor desires to make changes to the approved HUB Subcontracting Plan, such proposed changes shall be submitted to PMCS for review and approval before the changes will be effective under the contract involving subcontracting. The professional/contractor/vendor shall submit Attachments A, B, C, D, and E identifying first and second tier subcontractors as applicable to request approval for proposed changes to the approved HUB Subcontracting Plan. [Procedure j.]
  11. A Response may state that the respondent intends to perform all the subcontracting opportunities with its own employees and resources in accordance with the policy. If the respondent is selected and decides to subcontract any part of the work after award, the professional/contractor/vendor shall submit a HUB Subcontracting Plan before PMCS authorizes any modifications or performance in the awarded contract. The professional/contractor/vendor shall submit Attachments A, B, C, D, and E identifying first and second tier subcontractors as applicable to request approval of the HUB Subcontracting Plan. [Procedure k.]
  12. PMCS shall require a professional/contractor/vendor to whom a contract has been awarded to report to PMCS the identity and the amount paid to its subcontractors on a monthly basis using Attachments H and I. [Procedures l., m., and n.]
  13. If PMCS determines that the a successful respondent failed to implement an approved HUB Subcontracting Plan in good faith, PMCS, in addition to any other remedies, may report nonperformance to the General Services Commission in accordance with 1 TAC, Chapter 113, Subchapter F (relating to Vendor Performance and Debarment Program). [Procedure o.]
  14. See the Prime Contractor Bid List Request Form, Professional Services Consideration Request Form and other forms in the HUB Forms section.
  15. This Summary of Requirements is for discussion purposes only. This Summary does not alter, change, diminish or otherwise supercede the text or the requirements of The University of Texas System, Office of Facilities Planning and Construction, Policy on Utilization of Historically Underutilized Business (HUBs).
  16. These requirements, including the attachments and HUB forms referred to above, may be downloaded online. For additional information contact Mindy J. Cool, manager of Procurement & Compliance, at 512-475-8452.