Supply Chain Operations

Historically Underutilized Business Program

UT Health Northeast’s Commitment: To broaden awareness of UT Health Northeast’s commitment to Historically Underutilized Business (HUB) participation through education and outreach programs.

To provide an equal opportunity for HUBs to compete for contracts and purchases.

To increase the number of contracts awarded to HUBs.

To encourage HUB Certification of minority businesses through the Texas Building and Procurement Commission (TBPC).

UT Health Northeast actively seeks qualified HUB vendors and contractors to participate in the bid process for goods and services.

HUB Definition and Goals:
A HUB is defined as a profit-making corporation, sole proprietorship, partnership or joint venture in which at least 51 percent of the shares or stock or other equitable securities are owned by one or more persons who are members of the following groups; African American, Hispanic American, Asian Pacific American, Native American, and Women.

The Texas Legislature requires state agencies to make a good faith effort to assist HUBs in receiving a portion of the total contract value of all contracts that are awarded in accordance with the following percentages:

11.9 % for heavy construction other than building contracts 26.1 % for all building construction, including general contractors and operative builders contracts
57 % for all special trade construction contracts
20 % for professional service contracts
33 % for all other services contracts
12.6% for commodities contracts

HUB Subcontracting Plan:
In accordance with the Texas Government Code (TGC), Section 2161.252 and Texas Administrative Code (TAC) Title 1, Part 5, Chapter 111, Subchapter B, Rule §111.14, each state agency (including institutions of higher education) as defined by TGC §2151.002 that considers entering into a contract with an expected value of $100,000 or more shall before the agency solicits bids, proposals, offers, or other applicable expressions of interest, determine whether subcontracting opportunities are probable under this contract.

If subcontracting opportunities are probable, each state agency’s invitation for bids or other purchase solicitation documents for construction, professional services, other services, and commodities with an expected value of $100,000 or more shall state that probability and require a HUB subcontracting plan (HSP).

In accordance with Texas Government Code, §2161.181 and §2161.182, each state agency shall make a good faith effort to increase the contract awards for the purchase of goods or services to HUBs based on rules adopted by the Commission to implement the disparity study described by TGC §2161.002(c).

The purpose of the HUB Program is to promote equal business opportunities for economically disadvantaged persons (as defined by TGC §2161) to contract with the State of Texas in accordance with the goals specified in the State of Texas Disparity Study. The HUB goals per TAC §111.13 are listed above.

HUB Reporting:
The reporting process is a critical element of the Texas HUB Program. The Texas Building and Procurement Commission (TBPC) prepares Historically Underutilized Business (HUB) Information twice each year, in September and March. These reports identify total expenditures for all agencies and the amount and percentage of HUB participation for each agency. State agencies are able to supplement this with subcontracting information.

A vendor must be HUB certified during the reporting period to be included in the final agency spending report.

Legislative Authority:
Senate Bill 178 requires state agencies to make a good-faith effort to meet HUB goals for all purchases.

More information regarding HUB Program Rules and Legislation

NOTICE: Protected health information is subject to electronic disclosure.