Supply Chain Management: Historically Underutilized Business Program
Historically Underutilized Business Program Overview
The Historically Underutilized Business (HUB) Program at the University of Texas Medial Branch was established to identify Historically Underutilized Businesses and encourage them to participate in the competitive bid process with the objective of increasing the number of contracts awarded to HUB suppliers.
UTMB's Historically Underutilized Business (HUB) Program objectives are:
- Identify American minority and women-owned businesses.
- Encourage participation in the competitive bid process.
- Provide Training
- Make an impact on the economy
In accordance with Texas Administrative Code §20.13, each state agency shall make a good faith effort to utilize HUBs in contracts for construction, services (including professional and consulting services) and commodities purchases.
In order to be considered a HUB supplier in the State of Texas:
A "Historically Underutilized Business" is an entity with its principal place of business in Texas, and is at least 51% owned by an Asian Pacific American, Black American, Hispanic American, Native American, American woman and/or Service Disabled Veterans who reside in Texas and have a proportionate interest and demonstrate active participation in the control, operations and management of the entity's affairs.
Vendors seeking certification as a HUB are required to submit a completed HUB certification application and supporting documentation, affirming under penalty of perjury that their business qualifies as a HUBApplications maybe obtained by going to the Texas Procurement and Support Services Website at www.window.state.tx.us/procurement/prog/hub/hub-certification/
BENEFITS OF CERTIFICATION
HUB certification is free of charge and is valid for a period of 4 years, provided that business continues to meet the eligibility requirements.
- State agencies are required to make a good faith effort to include only state certified HUB vendors in their procurement process
- Only certified HUBs are listed in the online Texas HUB Directory
- State agencies are required to report dollars spent and contracts signed with State of Texas HUB certified vendors.
To expand opportunities for HUBs the State enacted Chapter 2161.252, Subchapter F of the Texas Government Code which states that each state agency that considers entering into a contract with an expected value of $100,000 or more shall determine whether subcontracting opportunities are probable under the contract and if opportunities exist, prime contractors are required to extend the good faith effort in selection and award of subcontractors.
UTMB's purchasing professionals and HUB Coordinator determine the probability for HUB subcontracting opportunities. Once a solicitation has been reviewed and determined to have subcontracting potential, vendors, both HUB and non-HUBs, must submit a compliant HUB Subcontracting Plan with their bid, proposal, offer, or expression of interest by a specified deadline.
The UTMB Mentor Protégé Program was implemented in cooperation with the Houston Minority Supplier Development Council (HMSDC) to advance the growth and development of minority and women-owned businesses in Texas. The purpose of the program is to help HUB suppliers succeed through business development and educational programs. UTMB and HMSDC provides assistance to these minority suppliers by educating them on how to market their business to all agencies and corporations, identifying what their target market might be for the products they sell, and informing them of the benefits of being certified as a minority-owned business with the state of Texas.
The benefits of mentoring for an HUB supplier included access to corporate resources, enhanced skills in business discipline or area of interest, and increased visibility through business relationships.