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Frequently Asked Questions


1.      What is a Historically Underutilized Business (HUB)?  

2.      Are state agencies and institutions of higher education required to buy from HUB vendors?

3.      Do I need to become HUB certified to sell to Texas Tech University?

4.      What does it cost to become a certified Texas HUB vendor?

5.      What information is required to become certified?

6.      How long does the HUB application take to process?

7.      What is the CMBL?

8.      How do I register for the CMBL?

9.      What are commodity codes and where are they listed?

10.  What is a subcontractor?

11.  What is a HUB Subcontracting Plan?

12.  If my company is already HUB certified, do I need to complete an HSP?

13.  If we do everything “in house,” do we need to submit an HSP?

14.  What does a good faith effort include?

 

 

1.      What is a Historically Underutilized Business (HUB)? 

A HUB

·         is a for-profit entity that has not exceeded the size standard prescribed by 34 TAC §20.23 and has its principal place of business in Texas; and

·         is at least 51 percent owned by one or more persons who are an Asian Pacific American, Black American, Hispanic  American, Native American and/or American woman with US citizenship, Texas residency, and a proportionate interest and active participation in the control, operations and management of the entity’s affairs.

For more information, see the State’s website Historically Underutilized Business (HUB) Program

 

2.      Are state agencies and institutions of higher education required to buy from HUB vendors?

No, but state agencies and institutions of higher education are required to show a good faith effort to utilize HUBs in contracts for construction, services and commodities purchases.   In addition, state agencies have HUB utilization goals that they must attain each fiscal year (September through August).

 

3.      Do I need to become HUB certified to sell to Texas Tech University?

Although HUB certification is not required to sell to TTU, the University actively seeks to increase business opportunities with HUB businesses.  Texas Tech encourages all businesses eligible for HUB certification to become HUB certified.  The Procurement Assistance Center, a non-profit organization funded jointly by the federal government and Texas Tech University, can assist businesses in the certification process. Business owners can contact the Procurement Assistance Center at 806-745-3973 or by email at pac@nwtsbdc.org

 

4.      What does it cost to become a certified Texas HUB vendor?

The HUB application is free and is valid for 4 years, provided that the business continues to meet the eligibility requirements.  Information about applying for HUB certification may be downloaded at How to Register as a Texas Vendor 

 

5.      What information is required to become certified?

Businesses must have an Employer Identification Number (EIN) issued by the IRS and will be required to provide business structure and ownership details.  They will also need to provide information about the products or services they provide and the districts where their products or services are available/deliverable.

NOTE:   The Procurement Assistance Center, a non-profit organization funded jointly by the federal government and Texas Tech University, can assist businesses in the certification process. Business owners can contact the Procurement Assistance Center at 806-745-3973 or by email at pac@nwtsbdc.org

 

6.      How long does the HUB application take to process?

The HUB application takes about 60 days to process.  Once the application process is complete, businesses are registered on the Comptroller’s web-based HUB Directory at HUB Directory   State agencies use the HUB Directory and the CMBL to solicit bids from certified HUBS for contracts.  Prime contractors also use the HUB Directory to identify HUBs to whom they will send notification of their subcontracting opportunities.

 

7.      What is the CMBL?

The Centralized Master Bidders List (CMBL) is a master database used by state purchasing entities to develop mailing lists for vendors to receive competitive bids based on the products or services they can provide to state agencies.   Vendors are not required to be on the CMBL.

 

8.      How do I register for the CMBL?

The annual registration fee for the CMBL is $70, which may be paid online with a credit/debit card at Centralized Master Bidders List (CMBL)

 

9.      What are commodity codes and where are they listed?

Texas Procurement and Support Services (TPASS) utilizes the class-item numbering and descriptions from the NIGP Commodity Book to code products and services on requisitions and purchases.  Using these commodity codes, the informal and formal bids will reach vendors that have indicated they are capable of furnishing the required materials, equipment, supplies and services.

 

10. What is a subcontractor?

 A subcontractor is a person who contracts with a vendor to work or contribute toward completing work for a governmental entity.

 

11. What is a HUB Subcontracting Plan?

The State of Texas requires that all state agencies make a good faith effort to utilize HUBs in contracts for construction, services and commodity procurement.  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 before the agency solicits bids, proposals or offers.  The bidders or proposers must submit their HUB subcontracting plan on the State of Texas HUB Subcontracting form.  Forms must be complete and legible and may not be altered in any way.  The HUB Subcontracting Plan (HSP) shall be submitted with the bid or proposal, HSPs that are not submitted on the State of Texas form or that are not complete will be considered nonresponsive and will be rejected.

 

12. If my company is already HUB certified, do I need to complete an HSP?

Yes.  Being a HUB vendor does not exempt a vendor from meeting the requirements of a HUB Subcontracting Plan.

 

13. If we do everything “in house,” do we need to submit an HSP?

Yes, in the event that you will not be subcontracting any portion of the bid, you must still complete and return the HUB Subcontracting Plan.

 

14. What does a good faith effort include?

A good faith effort includes the vendor developing a HUB Subcontracting Plan that includes, but is not limited to the following actions:

·         Dividing the contract work into reasonable lots or portions to the extent consistent with prudent industry practices.

·         Providing written notifications to three (3) HUBs in writing of the work the potential contractor/vendor intends to subcontract.  Notification must include the scope of the work, information regarding the location to review plans and specifications, bonding and insurance information and/or requirements, and contact information.  Vendor must allow the HUBs no less than five (5) working days from their receipt of notice to respond.

·         Providing written notification to a minority or women trade organization or development center concerning subcontracting opportunities.  The notification must include the scope of the work, information regarding the location to review plans and specifications, bonding and insurance information and/or requirements, and contact information.  Vendor must allow no less than five (5) working days from the receipt of notice for subcontractors to respond.

·         Providing TTU with official written documentation to demonstrate compliance with the above notification requirements (i.e., copies of phone logs, fax transmittal logs, written and email correspondence, and responses).  Failure to provide proof of vendor’s good faith effort will result in the disqualification of the response.