Historically Underutilized Business HUB Training DE123

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Historically Underutilized Business (HUB)
Training DE123

• Annette Smith
• 1-2850
• annettesmith_at_mail.utexas.edu

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HUB Program Staff

• Arthur McDonald Director/HUB Coordinator
• Annette Smith Staff Associate
• John Trevino Staff Associate
• Rick Breum Administrative Assistant
• Angie Brown Staff Associate/PP
• Tiffany Dockery Systems Analyst

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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

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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.

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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

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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

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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.

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1997 The 75th legislature decided that the only
official HUB Vendors would have to have
residency in the State of Texas.
Also, Personal Income tax information would be
exempt from the Open Records Act. 1999 The 76
Legislature passed Senate Bill 178 which
solidifies all previous HUB legislation. The
General Services Commission is still charged
with writing the HUB rules. The program is based
on Good Faith Effort and less emphasis on the
goal numbers.
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Senate Bill 178

• HUB Coordinator ( equal to or an agencys
  purchasing director)
• Subcontracting Plan ( required on all contracts
  100k or greater)
• EOF and HUB Forums ( 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)

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State of Texas Disparity Study

• Identified Categories
• Commodities
• Professional Services
• Other Services
• Special Trade
• Building Construction
• Heavy Construction

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Over-utilized Businesses

• Commodities - Asian Native Am
• Professional Services - Asian Native Am
• Special Trade - Women
• Heavy Construction - Women / Asian Native
• Other Services
• Building Construction

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Categories and Goals FY 2001

• Commodities 11.5 12.8
• Other Services 33.0 7.75
• Professional Services 18.1 8.38
• Construction 25.1 4.50
• Heavy Construction 6.6 -
• Special Trade 57.2 8.03

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UTs Utilization of HUB vendors YEAR
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 6 goals
• 1997 7.35 6 goals
• 1998 9.41 6 goals
• 1999 13.11 6 goals
• 2000 12.9 6 goals
• 2001 10.6 6 goals

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Certification Process

• Only state (GSC) certified HUBs
• count towards the University HUB
• goals.

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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 GSC.
• Vendors from other certification systems in Texas
  are now being considered for State certification.

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The University of Texas RegentsHUB Policy
www.utsystem.edu/bor/regentalpolicies/hub.htm
Purpose Scope Definitions Responsibilities
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Purchasing

• Treasury Funds
• Local Funds
• Competitive Bids
• Formal Bids
• Sole Source
• Catalog

Be sure to call your buyer for purchasing
questions and help
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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.

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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
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Locating HUB Vendors
The DEFINE System using the PCM and PSM
Commands PC5 Locate class and item
codes PS5 List Vendors for a specific class and
item PS3 Locate vendors in alphabetical
order PS4 Locate vendors by VID number
www.gsc.state.tx.us/
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use the GG3 Command to locate HUB Vendors. This
information is not directly downloaded from the
State HUB data base and may be incorrect.
Do not
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HELP Resources
_at_HUBME is a user group that shares HUB
information between Departments. Internet
www.utexas.edu/admin/purchasing/HUB.html
Accounting 471-3723 Purchasing 471-4266 HUB
Office 471-2688
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The End