Historically Underutilized and Small Business (HUB/SB) Training DE123

1. Historically Underutilized and Small Business(HUB/SB) Training DE123 http://www.utexas.edu/administration/hub/index.html Annette Smith 471-2850 asmith@austin.utexas.edu

2. HUB Program Staff • Arthur McDonald, Director/HUB Coordinator • Annette Smith, Staff Associate • John Trevino, Staff Associate • Tiffany Dockery, Staff Associate • Murial Kruse, Staff Associate/PCMS

3. Purpose • To increase the number of contracts awarded to HUBs • To bring both HUBs and buyers together • To Educate the university community • To Educate the business community

4. What is a HUB? Historically Underutilized Business is a corporation, sole proprietorship, partnership or joint venture formed for the purpose of making a profit in which 51% ownership of the business is by a woman or ethnic minority.

5. How Did We Get Here? • 1989 71st legislative Session required a policy be established to encourage the inclusion of HUBs in bidding for contracts and purchases • 1991 72nd legislative Session passed HB 799 requiring that we work in “good faith” to reach a 10% utilization goal

6. Legislation • 1995 74th Legislative session released the results of the disparity study and The General Service Commission was given the task of creating a policy and rules directly related to the study which all state agencies and institutions are to follow.

7. More legislation • 1993 73rd Legislative session raised the goal to 30% until the completion of the State of Texas Disparity Study to determine whether race and sex discrimination limited HUB companies from doing business with the State of Texas

8. 1997 The 75th legislature decided that the only official HUB Vendors would have to have residency in the State of Texas. Personal Income tax information became the only exemption from the Open Records Act.

9. State of Texas Disparity Study Identified Categories • Commodities • Professional Services • Other Services • Special Trade • Building Construction • Heavy Construction

10. Senate Bill 178 • 1999 The 76 Legislature signed Senate Bill 178 which solidifies all previous HUB legislation. • The General Services Commission is charged with writing the HUB rules. The program is based on Good Faith Effort and moved from socially disadvantaged to economically disadvantaged

11. Senate Bill 178 • HUB Coordinator( equal to or an agency’s purchasing director) • Subcontracting Plan( required o all contracts $100k or greater) • Host specialized events to match vendors and departments • Mentor Protégé Program( Match a larger company with a smaller company to provide needed expertise monitored by the university)

12. Senate Bill 178 con’t • Transfer of delegated purchasing authority of agencies that are non-compliant with their HUB Strategic Plan • HUB with principal place of business in Texas • Certifications may be accepted from other local gov’t entities in the state

13. Categories and Goals FY 2004 Goal UT Commodities 11.5% 16.6% Other Services 33.0% 4.93% Professional Service 18.1% 15.1%

14. UT’s Utilization of HUB vendorsYEAR UT GOAL 1991 1.8% 10% 1992 3.2% 10% 1993 6.8% 10% 1994 13.7% 30% 1995 11.6% 30% 1996 9.97% 1997 7.35% 1998 9.41% 1999 15.0% 2000 14.3% 2001 11.7% 2002 10.3% 2003 11.2% 2005 13.9% 2006 14.0%

15. Certification If a vendor is not certified as a HUB and is eligible, the vendor can obtain information regarding certification from the University HUB Office or the TBPC. Vendors from other certification systems in Texas are now being considered for State certification. You must be certified with TBPC to be a State of Texas HUB.

16. The University of Texas Board of Regent’sHUB Policy UT BOR HUB Policy www.utsystem.edu/bor/regentalpolicies/hub.htm

17. SPENDING • Treasury Funds • Local Funds • Competitive Bids • Formal Bids • Sole Source • Catalog Always call your buyer if you are not sure

18. Future Purchases • If you know of items that you will be purchasing in the future, you can start the search early as possible and locate vendors when there is no pressure to make a hurried decision. • The State of Texas Open Records Act allows us to share past bid information with vendors. This information will allow for the vendor to adjust their profit margin to become more competitive in the future.

19. Locating HUB Vendors UT Pointplus https://utdirect.utexas.edu/pointplus/index.WBX Texas Building and Procurement Commission http://www.tbpc.state.tx.us/cmbl/cmblhub.html University of Texas HUB Program http://www.utexas.edu/administration/hub/index.html

20. Reports Monthly utilization reports are generated each month www.utexas.edu/admin/purchasing/hubgoals.html (You will have to use your UTEID to access the reports) Tiffany Dockery 471-2863

21. Sample Department Report

22. Overall UT Report

23. Electronic Monthly HUB Reports • Outline Year-To-Date expenditures • Sent out on the 20th of each month • Report sent to Unit Head and/or designee.

24. Small Business Program • A large amount of the universities money comes from federal grants and these grants require the university to assist small businesses in obtaining a fair share of the Federal Government contracts.

25. SB Catagories • Veteran-owned small business (VOSB) • Service-disabled veteran-owned (SDVOSB) • Historically Underutilized Business areas (HUBZone) • Small Business (SB) • Historically black colleges and universities and • minority institutions (HBCU/MI’s) • Women-owned small business (WOSB)

26. Questions