ESBD_408498_1744230114598_Exhibit F - HUB Subcontracting Plan.pdf

Page 1 of 23 Revised March 2025

Historically Underutilized Business (HUB)

Subcontracting Plan (HSP) Requirements

Table of Contents HHS HUB Subcontracting Plan (HSP) Requirements

HUB Subcontracting Plan (HSP) Quick Checklist

HUB Subcontracting Plan (HSP) Forms ....................................................................................... …16

Sample CMBL – Vendor Detail Example…………………………………………………………………………………………23

1.1 HHS Administrative Rules

Pursuant to TGC Section 2161.002 and Section 2161.003, Health and Human Services (HHS) adopted the rules of the Texas Comptroller of Public Accounts (CPA) as its own rules (see TAC, Title 1, Part 15, Chapter 391, Subchapter E, Rule §391.501). If there are any discrepancies between the CPA’s administrative rules and this Solicitation, the rules will take priority.

1.2 Statewide Annual HUB Utilization Goal

HHS adopted the CPA’s Statewide Annual HUB Goals based on the 2009 State of Texas Disparity Study as its own agency-specific goals (TAC, Title 34, Part 1, Chapter 20, Subchapter D, Division 1, Rules §20.284). The HHS policy is to promote full inclusion of HUBs in all of its procurement opportunities in a direct and indirect (subcontracting) capacity to achieve or exceed the goals specified by each procurement category reflected in the disparity study.

This Solicitation is classified as a Other Services Contract under the above CPA rule and therefore the HHS HUB utilization goal is 26%.

1.3 Determination of HSP Requirement

TGC Chapter 2161 and TAC, Title 34, Part 1, Chapter 20, Subchapter D, Division 1, Rules §20.284 and §20.285, requires the agency to consider whether there will be probable subcontracting opportunities for all contracts, with an expected value of $100,000 or more (including renewals and amendments), before the agency solicits bids, proposals, offers, or other applicable expressions of interest for the contract. Subcontracting opportunities are

HHS0015168v2 https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2161.htm#2161.002 https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2161.htm#2161.003 https://texreg.sos.state.tx.us/public/readtac$ext.ViewTAC?tac_view=5&ti=1&pt=15&ch=391&sch=E&rl=Y https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=20&rl=284 https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=20&rl=284 https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2161.htm#2161.252 https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=20&rl=284 https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=20&rl=284 https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=20&rl=285

Page 2 of 23 Revised March 2025 considered to be equipment, materials, goods, contracted labor,1 and services the Respondent cannot fulfill with its own internal resources.

If the agency determines that there is a probability of subcontracting opportunities, the agency must require that each bid, proposal, offer, or other applicable expression of interest for the contract include a completed HSP. If the response does not include a completed HSP and/or HHS determines that the HSP was not developed in good faith, the response will be deemed non-responsive, and it cannot be evaluated for a contract award.

HHS has examined the Scope of Work under the proposed Contract to determine if it is likely to be performed by a Subcontractor; researched the Centralized Master Bidders List (CMBL) for HUBs that may be available to perform the Contract Work; reviewed the past history of similar agency procurements; and has determined that subcontracting opportunities are probable for this Solicitation.

Therefore, all Respondents regardless of HUB status (HUB or non-HUB) must develop an HSP in good faith and submit a completed HSP with their response. Failure to comply with this requirement will deem the bid, proposal, offer, or other applicable expression of interest non-responsive, and it will be rejected without further evaluation due to material failure.

Probable Subcontracting Opportunities

HHS has determined that probable subcontracting opportunities exist within the following National Institute of Governmental Purchasing (NIGP) Class/Item Code(s):

Class

Item

Automated

Information System

(AIS)

Item Description

208 85 Yes Surveying Systems Software, Microcomputer

310 67 No Envelopes, shipping, and Mailing

915 44 No Fulfillment, Including Data Processing, Packaging, Labeling and Mailing of Literature as a Package

966 31 No Envelope and Mailer Printing

966 76 No Print-On-Demand Printing Services, Including

Print and Distribute Services

The above identified items do not represent all of the possible subcontracting opportunities

1 Contracted labor means individuals that are not “regular” employees of the company/organization, see also guidance available from the Internal Revenue Service (IRS) regarding contracted labor vs. employees (IRS 1099 publications). Contracted labor is a subcontractor.

Page 3 of 23 Revised March 2025 that may be available through this Solicitation. The Respondent is not required to use, nor limited to using any of the above class and item code(s). However, the Respondent is required to include HUBs in any opportunity the Respondent will not be performing with their internal resources (materials, equipment, supplies, and employees2).

1.4 Compliance Resources

Solicitation’s HUB Coordinator

In an effort to assist Respondents to comply with the HUB requirements, HHS assigns a HUB Coordinator as a sole point of contact for HUB inquiries, HSP training, and to provide HSP Courtesy Reviews (upon request – see Section 1.4.2 of this exhibit). The assigned HUB Coordinator for this Solicitation is:

Cheryl Bradley

Phone: 512-406-2529

Email: Cheryl.Bradley@hhs.texas.gov

HSP Courtesy Reviews

A courtesy review of a Respondent’s completed HSP is optional and is available to assist

Respondents in providing a compliant and responsive HSP. This courtesy review may only identify possible deficiencies. The final HSP determination may only be provided at the time of the final submission of the HSP with the Solicitation Response.

To request a courtesy review, submit the completed HSP including all supporting documentation in accordance with the directions provided in the Solicitation.

HSPs received after the “Courtesy Review of HSP” deadline in the Solicitation’s Schedule of

Events or deadlines established in subsequent Addenda, will not be reviewed and will be returned to the requestor.

The final HSP must be submitted by the Solicitation Response Deadline identified in the

Solicitation’s Schedule of Events or deadline established in subsequent Addenda. Responses received without a properly completed and compliant HSP will be disqualified.

HSP Training Resources

2 Employee means an individual that receives a Wage and Tax Statement (W-2 Form) from the Respondent.

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HHS encourages Respondents to take advantage of the HSP training offered specifically for this Solicitation (if applicable) and noted in the Solicitation’s Schedule of Events. In addition, a pre-recorded Webinar HSP training providing general information for developing an HSP in good faith is available at:

https://www.gotostage.com/channel/hhshubprogramtraining.

HHS also recommends that Respondents review training resources provided in Section 1.7, Post-Award HSP Requirements, and Section 1.8, HSP Most Common Errors, of this exhibit.

CMBL/HUB Directory

The CPA is responsible for HUB certification and maintaining the CMBL/HUB Directory to satisfy the good-faith effort requirements. Note, only HUB vendors that are included in the CPA’s database that are actively HUB certified at the time of the Solicitation may be used to satisfy the Respondent’s requirement for developing the HSP in good faith.

Below are instructions for identifying the State of Texas Certified HUBs on the CMBL/HUB Directory:

1. Access the CMBL and HUB Directory at https://mycpa.cpa.state.tx.us/tpasscmblsearch/tpasscmblsearch.do.

2. CMBL page will default to certain fields already checked – using the “HUBs Only” and “HUBs On CMBL” radio buttons will help to provide a current list of Texas certified HUBs. Ensure the vendor’s HUB status code is “A” for currently active

HUBs.

3. Under the “Multiple Vendor Search” tab enter the NIGP code that correlates to the products or services in the “NIGP Class Code” and “Items” fields. A complete list of

NIGP codes may be found at: https://commbook.app.cpa.state.tx.us/.

4. Enter “Highway District(s)” number to select specific geographical location or leave blank for a statewide search. Start with a specific geographical search; and if unable to locate HUBs, expand the geographical search.

5. Under the “Selected Fields for Output” tab, the detail list page will default to certain fields. In addition to these defaulted fields, add “HUB Eligibility,” “HUB Gender,” and

“Business Description” fields to the search.

6. The “Output Options” tab provides users with the ability to choose the format of the data. For better data sorting, “Excel” is recommended as the output option. Data manipulations are easier to perform in an Excel spreadsheet to find the appropriate

HUB vendors for effective HUB outreach.

7. The CPA is responsible for certifying vendors that meet the legal criteria for HUB certification. More information regarding HUB certification may be accessed at https://comptroller.texas.gov/purchasing/vendor/hub/certification-process.php.

https://www.gotostage.com/channel/hhshubprogramtraining https://mycpa.cpa.state.tx.us/tpasscmblsearch/tpasscmblsearch.do https://commbook.app.cpa.state.tx.us/ https://comptroller.texas.gov/purchasing/vendor/hub/certification-process.php

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8. Respondents may contact the assigned HUB Coordinator in Section 1.4.1 of this exhibit for assistance if needed.

Note, HHS does not endorse, qualify, or guarantee any of the vendors listed in the CMBL or HUB directory.

HUB Trade Organizations and Business Development Centers

Outreach resources to identify HUB trade organizations or business development centers that predominantly serve members of economically disadvantage groups (e.g., Asian- Pacific Americans, Black Americans, Hispanic Americans, Native Americans, American Women, and service-disabled veterans as defined by 38 U.S.C. § 101(2)) to assist with good-faith effort requirements may be accessed on the CPA’s website at https://comptroller.texas.gov/purchasing/vendor/hub/resources.php.

1.5 HUB Subcontracting Plan Procedures - If Respondent Intends to Subcontract

An HSP must demonstrate that the Respondent made a good-faith effort to comply with the HHS HUB policies and procedures. The following subparts outline the items that HHS will review in determining whether an HSP meets the good-faith effort standard. A Respondent that intends to Subcontract must complete the HSP to document its good-faith efforts.

Identify Subcontracting Areas and Divide Them into Reasonable Lots

A Respondent should first identify each area of the Contract Work it intends to Subcontract.

Then, to maximize HUB participation, it should divide the Contract Work into reasonable lots or portions to the extent consistent with prudent industry practices.

Notify Potential HUB Subcontractors

The HSP must demonstrate that the Respondent made a good-faith effort to Subcontract with HUBs. The Respondent’s good-faith efforts shall be shown through utilization of all methods in conformance with the development and submission of the HSP and by complying with the following steps:

1. Divide the Contract Work into reasonable lots or portions to the extent consistent with prudent industry practices. The Respondent must determine which portions of Work, including Goods and Services, will be Subcontracted.

2. Use the appropriate method(s) to demonstrate good-faith effort. The Respondent https://comptroller.texas.gov/purchasing/vendor/hub/resources.php

Page 6 of 23 Revised March 2025 must use one of the method(s) I, II, III, or IV as set out below when subcontracting:

Method I: Using Only HUBs;

Respondent only intends to utilize HUB Subcontractors. No non-HUB Subcontractors may be use for this method. The Respondent must identify in the HSP the active and certified HUBs that will be utilized and submit written documentation that confirms 100% of all available subcontracting opportunities will be performed by one or more HUBs. Note, this method is not time sensitive.

Please complete the following sections and provide the following documents for “Method I”:

HSP, Page 1, Section 1 - Respondent and Requisition Information;

HSP, Page 2, Section 2 - Respondent's Subcontracting Intentions;

HSP, Page 3, Section 4 – Affirmation;

Submit an “Attachment A” for each subcontracting item listed in HSP, Section 2; and

Submit supporting documentation to substantiate each HUB selected is an actively certified HUB vendor (include a copy of the profile located in the CPA’s CMBL/HUB Directory);

or

Method II: Mentor-Protégé Program;

Respondent (Mentor) intends to subcontract directly with their HUB Protégé. HHS will accept a Mentor-Protégé Agreement that has been entered into by a Respondent (Mentor) and a certified HUB (Protégé) in accordance with TGC Section 2161.065. When a Respondent proposes to subcontract with their Protégé(s), it does not need to provide additional notices to three (3) HUB vendors for the subcontracted item(s) provided by Protégé(s).

The Respondent must identify the subcontracting item(s) that the Protégé(s) will be providing as well as the subcontracting value. However, if the Respondent intends to utilize additional Subcontractors other than the Protégé(s), the Respondent is required to utilize Method IV:

Solicitation, Section 1.5.2.4 below, for all other subcontracting items to comply fully with the HSP requirements – see all applicable requirements for Section 1.5.2.4, Method IV:

Solicitation.

Participation in the Mentor-Protégé Program, along with the submission of a Protégé as a Subcontractor in an HSP, constitutes a good-faith effort only for the particular area subcontracted to the Protégé.

Please complete the following sections and provide the following documents for “Method II”:

http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.2161.htm#2161.065

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HSP, Page 2, Section 2 - Respondent's Subcontracting Intentions;

HSP, Page 3, Section 4 – Affirmation;

Submit an “Attachment B” for each subcontracting item listed in HSP, Section 2; and

Submit supporting documentation from the CPA’s Mentor-Protégé Program Webpage https://mycpa.cpa.state.tx.us/mentorprotege/ctg/menproPairs/ that confirms the Mentor- Protégé Agreement is registered with CPA;

Method III: Meeting or Exceeding the HUB Contract Goal;

The Respondent intends to subcontract with both HUBs and non-HUBs and the expected aggregated percentage of the Contract will be meeting or exceeding the HHS HUB utilization goal listed in Section 1.2, Statewide Annual HUB Utilization Goal of this exhibit. The Respondent must identify in the HSP and submit written documentation that one or more HUB Subcontractors will be utilized and that the aggregate expected percentage of Subcontracts with HUBs will meet or exceed the HHS HUB utilization goal. When utilizing this method HUBs that have had a continuous contract3 in place with the Respondent a period of more than five (5) years cannot be used to satisfy this requirement.

When the aggregate expected percentage of Subcontracts with HUBs meets or exceeds the goal specified in this exhibit, Respondents may also use non-HUB Subcontractors. All Subcontractors (HUB and non-HUB) to be utilized must be stated within the HSP. Note, this method is not time sensitive.

Please complete the following sections and provide the following documents for “Method III”:

HSP, Page 2, Section 2 - Respondent's Subcontracting Intentions;

HSP, Page 3, Section 4 - Affirmation;

Submit an “Attachment A” for each subcontracting item listed in HSP, Section 2; and

Submit supporting documentation to substantiate each HUB selected is an actively

3 *Continuous Contract (excerpt from the HSP): Any existing written agreement (including any renewals that are exercised) between a prime contractor and a HUB vendor, where the HUB vendor provides the prime contractor with goods or service under the same contract for a specified period of time. The frequency the HUB vendor is utilized or paid during the term of the contract is not relevant to whether the contract is considered continuous.

Two or more contracts that run concurrently or overlap one another for different periods of time are considered by CPA to be individual contracts rather than renewals or extensions to the original contract. In such situations the prime contractor and HUB vendor are entering (have entered) into “new” contracts https://mycpa.cpa.state.tx.us/mentorprotege/ctg/menproPairs/

Page 8 of 23 Revised March 2025 certified HUB vendor (include a copy of the profile located in the CPA’s CMBL/HUB Directory).

Method IV: Solicitation;

The Respondent will NOT be utilizing all HUBs and will NOT be meeting the HHS HUB utilization goal on the Contract. ALL of the following requirements apply and requires written supporting documentation:

1. Written notifications to a minimum of two (2) HUB trade organizations and/or business development centers that predominantly serve members of economically disadvantage groups (e.g., Asian-Pacific Americans, Black Americans, Hispanic Americans, Native Americans, American Women, and service-disabled veterans as defined by 38 U.S.C. § 101(2)) to assist in identifying and marketing to potential HUBs by disseminating the subcontracting solicitations to their respective membership/participants. A list of HUB trade organizations, and/or business development centers is available on the CPA’s website as noted in Section 1.4.5 of this exhibit and

2. Provide written notifications to a minimum of three (3) HUB vendors per subcontracting opportunity item listed on the HSP, Page 2, “Section 2 Respondent’s Subcontracting Intentions.”

3. The above written notices to the HUB trade organizations/business development centers AND HUB vendors must contain the following information:

a. A description of the scope of work to be subcontracted and all of the pertinent information to submit a response;

b. Information regarding the location to review the plans or specifications;

c. Information regarding insurance and bonding requirements (if applicable);

d. Required qualifications and other pertinent contract requirements;

e. The Respondent’s point of contact and how to respond to the subcontracting solicitation; and

f. The time and date the subcontracting response is due to the Respondent (note, must be due prior to the Solicitation deadline identified in the Solicitation’s Schedule of Events or deadlines established in a subsequent Addendum).

Note, the CPA’s “HUB Subcontracting Opportunity Notification” form is an optional form that may also be used to comply with the above requirements. It is not a mandatory form but may assist Respondents in providing all of the required information.

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4. Respondent must provide HUB trade organizations/business development centers AND HUB vendors a reasonable amount of time to respond to the written notice but not less than a minimum of seven (7) working days. The date the notification is sent is considered day “zero” and cannot be used to satisfy the seven (7) working days’ requirement. In accordance with TAC, Title 34, Part 1, Chapter 20, Subchapter D, Division 1, Rule §20.282(25), a working day is a “[n]ormal business day of a state agency, not including weekends, federal or state holidays, or days the state agency is declared closed by its executive officer.” To further clarify what days are considered non-working days due to federal or state holidays, a link to the state’s holiday schedule is provided at http://www.hr.sao.texas.gov/Holidays/.

Note, Method IV: Solicitation is time sensitive and failure to provide the required seven (7) working days as noted as well as all of the other requirements noted in Section 1.5.2.4 of this exhibit will result in disqualification, and the HSP will be deemed non-responsive for material failure to comply with advertised specifications.

5. In addition, a Respondent must provide written justification of its selection process if it chooses a non-HUB Subcontractor. The justification should demonstrate that the Respondent negotiated in good faith with qualified HUB bidders and did not reject qualified HUBs who were the best value responsive bidders.

Please complete the following sections and provide the following documents for “Method IV”:

HSP, Page 1, Section 1 - Respondent and Requisition Information;

HSP, Page 2, Section 2 - Respondent's Subcontracting Intentions;

HSP, Page 3, Section 4 - Affirmation;

Submit an “Attachment B” for each item listed in HSP, Page 2, Section 2

Submit supporting documentation to substantiate that each HUB notified or selected is an actively certified HUB vendor (include a copy of the profile located in the CPA’s CMBL/HUB Directory); and

Submit written supporting documentation (emails, faxes, or certified letters) to substantiate compliance with Section 1.5.2.4, Method IV.

1.6 HUB Subcontracting Plan Procedures - Respondent Does Not Intend to Subcontract

Method V: Self-Performance;

When the Respondent does not intend to subcontract any portion of the Contract, but instead is able to provide all Work with the Respondent’s own equipment, supplies, materials, and/or employees (see Footnote 2), the Respondent is still required to submit a completed HSP.

The Respondent must complete the HSP, Page 3, “Section 3: Self Performing Justification” and attest that it does not intend to subcontract for any Goods or Services, including the class and item codes identified in Section 1.3.1, Probable Subcontracting Opportunities of this https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=20&rl=282 https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=20&rl=282 http://www.hr.sao.texas.gov/Holidays/

Page 10 of 23 Revised March 2025 exhibit. In addition, the Respondent must identify the sections of the proposal that describe how it will complete the Scope of Work using its own resources ( including employees, see Footnote 2) or provide a statement explaining how it will complete the entire Scope of Work using its own internal resources (including employees, see Footnote 2). The Respondent must agree to comply with the following upon HHS request:

1. Provide evidence of sufficient Respondent staffing to meet the Contract objectives;

2. Provide monthly payroll records showing the Respondent staff fully engaged in the Contract;

3. Allow HHS to conduct an on-site review of company headquarters or work site where Services are to be performed; and

4. Provide documentation proving employment of qualified personnel holding the necessary licenses and certificates required to perform the Scope of Work.

Note, for purposes of this exhibit, TAC, Title 34, Part 1, Chapter 20, Subchapter D, Division 1, Rule §20.282(20), defines Subcontractor “[a]s defined by Government Code, §2251.001, this is a person who contracts with a prime contractor to work or contribute toward completing work for a governmental entity.” Subcontracting includes outsourcing of supplies, materials, equipment, and/or services. In addition to provide further clarity, contracting staffing (see Footnote 1) is also considered subcontracting and if the Respondent intends to fulfill any portion of the Contract utilizing contracted staffing (see Footnote 1), then the Method V: Self-Performance is not an option for complying with the good-faith effort requirements. The Respondent must utilize any one of the four other methods listed above to submit a responsive HSP.

1.7 Post-Award HSP Requirements

Once the Contract has been awarded, the HSP submitted with the response becomes a

Contract provision and must be implemented in good faith. To assist the Contractor in understanding the HUB Contract requirements post award, a pre-recorded Webinar-based training has been provided for review and may be accessed at:

https://www.gotostage.com/channel/hhshubprogramtraining.

Immediately after the Contract award, a HUB Coordinator will be assigned to coordinate a HUB Post-Contract-Award meeting with the Contractor and the program area. The following items will be addressed during this meeting:

1. Solidifying the HSP prior to the start of the Contract. Please note, to make any updates to the HSP, the Contractor must have proper justification. Pricing is not an acceptable justification after the Contract is awarded.

2. As a condition of award, the Contractor is required to send notification to all selected Subcontractors as identified in the accepted/approved HSP. In addition, a copy of the notification(s) must be provided to the HHS contract manager and/or HUB Program Office within ten (10) working days of the Contract award.

https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=20&rl=282 https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=20&rl=282 https://www.gotostage.com/channel/hhshubprogramtraining

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3. Discuss procedure for any HSP change requirements should a need arise during the life of the Contract to replace or add any new Subcontractors onto the HSP. Contractor is required to make changes in good faith by utilizing any of the good-faith methods stated in Section 1.5, HUB Subcontracting Plan Procedures – If Respondent Intends to Subcontract, of this exhibit. In addition, it requires the HHS HUB Program Office to provide prior approval before the Contractor may engage any new Subcontractors.

4. The Contractor must submit a Progress Assessment Report (PAR) form each month, whether payment is issued to the subcontractors or not. All fields on the PAR form must be completed. The PAR is due on the 10th calendar day except for in September and March, the PAR is due on the 5th calendar day.

5. Failure to meet the HSP and post-contract-award requirements will constitute a breach of Contract and will be subject to remedial actions.

6. HHS may also report noncompliance to the CPA in accordance with the administrative rule governing the Vendor Performance and Debarment Program. Note, the CPA Debarment Program may result in being debarred from state contracting for a period of up to five (5) years.

1.8 HSP Most Common Errors

1. Methods I through V: Failure to submit a completed HSP with the Solicitation Response when the agency determined probability of subcontracting opportunities (see Section 1.3.1, Probable Subcontracting Opportunities of this exhibit). Completion requires responses with supporting documentation reflected by respective HSP Method, see Section 1.5. through Section 1.6.1 of this exhibit.

2. HUB Respondent’s failure to provide a completed HSP or incorrectly incorporating their company’s participation into the HSP towards meeting the HUB goal. Please note, being a certified Texas HUB does not exclude HUB Respondent from complying with the good-faith effort requirements reflected in this Solicitation, nor is the Respondent able to use their company’s participation towards meeting the HUB Utilization Goal. All Respondents regardless of HUB status responding to the Solicitation must fully adhere to the good-faith effort requirements in developing the HSP.

3. Method IV: Solicitation - Failure to provide seven (7) working days for HUB trade organizations/business development centers and HUB vendors to respond. Note, in accordance with TAC, Title 34, Part 1, Chapter 20, Subchapter D, Division 1, Rule §20.282(25), “working day” means a “[n]ormal business day of a state agency, not including weekends, federal or state holidays, or days the state agency is declared closed by its executive officer.” To further clarify what days are considered federal or state holidays, a link to the state’s holiday schedule is provided:

http://www.hr.sao.texas.gov/Holidays/. In addition, the day the Solicitation notification document is sent to the HUB trade organizations/business development centers and HUB vendors is considered day zero (0) and cannot be used to satisfy the seven (7) working days’ requirement (i.e., the notices were sent out on a Friday and the following Monday was a holiday, then Tuesday would be day one (1)).

https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=20&rl=282 https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=20&rl=282

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4. Method IV: Solicitation - Soliciting a trade organization that is not considered a HUB trade organization or a trade organization not located in the State of Texas. Contact information for HUB trade organizations is available on the CPA’s website:

5. Method IV: Solicitation - Solicitation Method IV: Failure to provide sufficient information in the subcontractor solicitation(s) for HUB vendors and HUB trade organizations/business development centers to be able to respond to a solicitation or determine the Solicitation’s Scope of Work (see Section1.5.2.4, Method IV: Solicitation, and the HSP form, Attachment B, “Section B-3: Notification of Subcontracting

Opportunity).

6. Method IV: Solicitation – Soliciting to HUB businesses whose NIGP Class and Item

Codes or business description is unrelated to the subcontracting solicitation or soliciting

HUB businesses for services outside of the geographical area, when HUBs are available in the immediate area (i.e., the physical work is located in Houston, Texas, but

Respondent choose to solicit HUBs in El Paso, Texas). Start with a specific geographical search; and if unable to locate HUBs, expand the geographical search area until HUBs are located. If unable to locate HUBs to solicit, contact the HUB

Coordinator in Section 1.4.1 for guidance.

7. Methods I through IV: Indicating “TBD” in any of the required HSP fields. When a solicitation contains unknown variables for determining dollar amounts or percentages, contact the HUB Coordinator for guidance. Leaving these fields blank or documenting as “TBD” may result in a non-responsive HSP determination.

8. Methods I through IV: Documenting a non-certified vendor as a HUB vendor used to satisfy the good-faith effort requirements. Respondent should always confirm the vendor’s HUB status in the CPA’s CMBL/HUB Directory profile

(https://mycpa.cpa.state.tx.us/tpasscmblsearch/tpasscmblsearch.do) to ensure the vendor HUB certification is “A” active on the date the Solicitation was sent to the vendor.

Furthermore, it is recommended that a printed copy of the HUB vendor’s profile be include with the HSP as supporting documentation to avoid any issues.

9. Methods I through V: Including contracting staffing (see Footnote 1) as employees in the proposal and/or HSP and does not perform a good-faith effort requirement to include

HUBs in the services performed by the contracted staffing (see Footnote 1) - note, only employees (see Footnote 2) may be considered as employees.

10. Methods I through V: Failure to document all subcontracting activity reflected within the proposal on the HSP documents. At the time of the HSP evaluation, a comparison is performed of the submitted proposal and the HSP to ensure the HSP is a true representation of any subcontracting that will be needed to fulfill all portions of an awarded contract. Any discrepancies may result in a non-responsive HSP and cannot be considered for a contract award.

https://mycpa.cpa.state.tx.us/tpasscmblsearch/tpasscmblsearch.do

Page 13 of 23 Revised March 2025

11. Methods I through IV: Calculating the subcontracting percentages incorrectly. The correct method for calculating subcontracting percentages is: (subcontracting amount divided by (÷) total contract amount).

Rev. 2/17

HUB Subcontracting Plan (HSP)

QUICK CHECKLIST

While this HSP Quick Checklist is being provided to merely assist you in readily identifying the sections of the HSP form that you will need to complete, it is very important that you adhere to the instructions in the HSP form and instructions provided by the contracting agency.

If you will be awarding all of the subcontracting work you have to offer under the contract to only Texas certified HUB vendors, complete:

Section 1 - Respondent and Requisition Information Section 2 a. - Yes, I will be subcontracting portions of the contract.

Section 2 b. - List all the portions of work you will subcontract, and indicate the percentage of the contract you expect to award to Texas certified HUB vendors.

Section 2 c. - Yes Section 4 - Affirmation GFE Method A (Attachment A) - Complete an Attachment A for each of the subcontracting opportunities you listed in Section 2 b.

If you will be subcontracting any portion of the contract to Texas certified HUB vendors and Non-HUB vendors, and the aggregate percentage of all the subcontracting work you will be awarding to the Texas certified HUB vendors with which you do not have a continuous contract* in place for more than five (5) years meets or exceeds the HUB Goal the contracting agency identified in the “Agency Special Instructions/Additional Requirements”, complete:

Section 1 - Respondent and Requisition Information Section 2 a. - Yes, I will be subcontracting portions of the contract.

Section 2 b. - List all the portions of work you will subcontract, and indicate the percentage of the contract you expect to award to Texas certified HUB vendors and Non-HUB vendors.

Section 2 c. - No Section 2 d. - Yes Section 4 - Affirmation GFE Method A (Attachment A) - Complete an Attachment A for each of the subcontracting opportunities you listed in Section 2 b.

If you will be subcontracting any portion of the contract to Texas certified HUB vendors and Non-HUB vendors or only to Non-HUB vendors, and the aggregate percentage of all the subcontracting work you will be awarding to the Texas certified HUB vendors with which you do not have a continuous contract* in place for more than five (5) years does not meet or exceed the HUB Goal the contracting agency identified in the “Agency Special Instructions/Additional Requirements”, complete:

Section 2 a. - Yes, I will be subcontracting portions of the contract.

Section 2 b. - List all the portions of work you will subcontract, and indicate the percentage of the contract you expect to award to Texas certified HUB vendors and Non-HUB vendors.

Section 2 c. - No Section 2 d. - No Section 4 - Affirmation GFE Method B (Attachment B) - Complete an Attachment B for each of the subcontracting opportunities you listed in Section 2 b.

If you will not be subcontracting any portion of the contract and will be fulfilling the entire contract with your own resources (i.e., employees, supplies, materials and/or equipment), complete:

Section 2 a. - No, I will not be subcontracting any portion of the contract, and I will be fulfilling the entire contract with my own resources.

Section 3 - Self Performing Justification Section 4 - Affirmation

*Continuous Contract: Any existing written agreement (including any renewals that are exercised) between a prime contractor and a HUB vendor, where the HUB vendor provides the prime contractor with goods or service, to include under the same contract for a specified period of time. The frequency the HUB vendor is utilized or paid during the term of the contract is not relevant to whether the contract is considered continuous. Two or more contracts that run concurrently or overlap one another for different periods of time are considered by CPA to be individual contracts rather than renewals or extensions to the original contract. In such situations the prime contractor and HUB vendor are entering (have entered) into “new” contracts.

HUB Subcontracting Plan (HSP)

In accordance with Texas Gov’t Code §2161.252, the contracting agency has determined that subcontracting opportunities are probable under this contract. Therefore, all respondents, including State of Texas certified Historically Underutilized Businesses (HUBs) must complete and submit this State of Texas HUB Subcontracting Plan (HSP) with their response to the bid requisition (solicitation).

NOTE: Responses that do not include a completed HSP shall be rejected pursuant to Texas Gov’t Code §2161.252(b).

The HUB Program promotes equal business opportunities for economically disadvantaged persons to contract with the State of Texas in accordance with the goals specified in the 2009 State of Texas Disparity Study. The statewide HUB goals defined in 34 Texas Administrative Code (TAC) §20.284 are:

• 11.2 percent for heavy construction other than building contracts,

• 21.1 percent for all building construction, including general contractors and operative builders’ contracts,

• 32.9 percent for all special trade construction contracts,

• 23.7 percent for professional services contracts,

• 26.0 percent for all other services contracts, and

• 21.1 percent for commodities contracts.

- - Agency Special Instructions/Additional Requirements - -

Respondent (Company) Name:

Point of Contact:

State of Texas VID #:

Bid Open Date:

SECTION 1: RESPONDENT AND REQUISITION INFORMATION

(mm/dd/yyyy)

- Yes - Nob.

c.

a.

In accordance with 34 TAC §20.285(d)(1)(D)(iii), a respondent (prime contractor) may demonstrate good faith effort to utilize Texas certified HUBs for its subcontracting opportunities if the total value of the respondent’s subcontracts with Texas certified HUBs meets or exceeds the statewide HUB goal or the agency specific HUB goal, whichever is higher. When a respondent uses this method to demonstrate good faith effort, the respondent must identify the HUBs with which it will subcontract. If using existing contracts with Texas certified HUBs to satisfy this requirement, only the aggregate percentage of the contracts expected to be subcontracted to HUBs with which the respondent does not have a continuous contract* in place for more than five (5) years shall qualify for meeting the HUB goal. This limitation is designed to encourage vendor rotation as recommended by the 2009 Texas Disparity Study.

E-mail Address:

Is your company a State of Texas certified HUB?

Requisition #:

Phone #:

Fax #:

- Yes, I will be subcontracting portions of the contract. (If Yes, complete Item b of this SECTION and continue to Item c of this SECTION.)

- Yes (If Yes, continue to SECTION 4 and complete an “HSP Good Faith Effort - Method A (Attachment A)” for each of the subcontracting opportunities you listed.)

- No (If No, continue to Item d, of this SECTION.)

- Yes (If Yes, continue to SECTION 4 and complete an “HSP Good Faith Effort - Method A (Attachment A)” for each of the subcontracting opportunities you listed.)

- No (If No, continue to SECTION 4 and complete an “HSP Good Faith Effort - Method B (Attachment B)” for each of the subcontracting opportunities you listed.)

Non-HUBs

HUBs

Enter your company’s name here: Requisition #:

SECTION 2: RESPONDENT's SUBCONTRACTING INTENTIONS

After dividing the contract work into reasonable lots or portions to the extent consistent with prudent industry practices, and taking into consideration the scope of work to be performed under the proposed contract, including all potential subcontracting opportunities, the respondent must determine what portions of work, including contracted staffing, goods and services will be subcontracted. Note: In accordance with 34 TAC §20.282, a “Subcontractor” means a person who contracts with a prime contractor to work, to supply commodities, or to contribute toward completing work for a governmental entity.

a. Check the appropriate box (Yes or No) that identifies your subcontracting intentions:

b. List all the portions of work (subcontracting opportunities) you will subcontract. Also, based on the total value of the contract, identify the percentages of the contract you expect to award to Texas certified HUBs, and the percentage of the contract you expect to award to vendors that are not a Texas certified HUB (i.e., Non-HUB).

Item # Subcontracting Opportunity Description Percentage of the contract expected to be subcontracted to

HUBs with which you do not have a continuous contract* in place for more than five (5) years.

Percentage of the contract expected to be subcontracted to

HUBs with which you have a continuous contract* in place for more than five (5) years.

Percentage of the contract expected to be subcontracted to non-HUBs.

1 %

6 %

11 %

Aggregate percentages of the contract expected to be subcontracted:

(Note: If you have more than fifteen subcontracting opportunities, a continuation sheet is available online at https://www.comptroller.texas.gov/purchasing/vendor/hub/forms.php).

c. Check the appropriate box (Yes or No) that indicates whether you will be using only Texas certified HUBs to perform all of the subcontracting opportunities you listed in SECTION 2, Item b.

d. Check the appropriate box (Yes or No) that indicates whether the aggregate expected percentage of the contract you will subcontract with Texas certified HUBs with which you do not have a continuous contract* in place with for more than five (5) years, meets or exceeds the HUB goal the contracting agency identified on page 1 in the “Agency Special Instructions/Additional Requirements.”

*Continuous Contract: Any existing written agreement (including any renewals that are exercised) between a prime contractor and a HUB vendor, where the HUB vendor provides the prime contractor with goods or service under the same contract for a specified period of time. The frequency the HUB vendor is utilized or paid during the term of the contract is not relevant to whether the contract is considered continuous. Two or more contracts that run concurrently or overlap one another for different periods of time are considered by CPA to be individual contracts rather than renewals or extensions to the original contract. In such situations the prime contractor and HUB vendor are entering (have entered) into “new” contracts.

- No, I will not be subcontracting any portion of the contract, and I will be fulfilling the entire contract with my own resources, including employees, goods and services. (If No, continue to SECTION 3 and SECTION 4.)

SECTION 2: RESPONDENT's SUBCONTRACTING INTENTIONS (CONTINUATION SHEET)

This page can be used as a continuation sheet to the HSP Form’s page 2, Section 2, Item b. Continue listing the portions of work (subcontracting opportunities) you will subcontract. Also, based on the total value of the contract, identify the percentages of the contract you expect to award to Texas certified HUBs, and the percentage of the contract you expect to award to vendors that are not a Texas certified HUB (i.e., Non-HUB).

Item # Subcontracting Opportunity Description

HUBs Non-HUBs

16 % % %

Aggregate percentages of the contract expected to be subcontracted:

HSP – SECTION 2

(Continuation Sheet)

*Continuous Contract: Any existing written agreement (including any renewals that are exercised) between a prime contractor and a HUB vendor, where the HUB vendor provides the prime contractor with goods or service under the same contract for a specified period of time. The frequency the HUB vendor is utilized or paid during the term of the contract is not relevant to whether the contract is considered continuous. Two or more contracts that run concurrently or overlap one another for different periods of time are considered by CPA to be individual contracts rather than renewals or extensions to the original contract. In such situations the prime contractor and HUB vendor are entering (have entered) into “new” contracts.

Percentage of the contract expected to be subcontracted to

HUBs with which you do not have a continuous contract* in place for more than five (5) years.

Percentage of the contract expected to be subcontracted to

HUBs with which you have a continuous contract* in place for more than five (5) years.

Percentage of the contract expected to be subcontracted to non-HUBs.

SECTION 3: SELF PERFORMING JUSTIFICATION (If you responded “No” to SECTION 2, Item a, you must complete this SECTION and continue to SECTION 4.) If you responded “No” to SECTION 2, Item a, in the space provided below explain how your company will perform the entire contract with its own employees, supplies, materials and/or equipment.

SECTION 4: AFFIRMATION

As evidenced by my signature below, I affirm that I am an authorized representative of the respondent listed in SECTION 1, and that the information and supporting documentation submitted with the HSP is true and correct. Respondent understands and agrees that, if awarded any portion of the requisition:

• The respondent will provide notice as soon as practical to all the subcontractors (HUBs and Non-HUBs) of their selection as a subcontractor for the awarded contract. The notice must specify at a minimum the contracting agency’s name and its point of contact for the contract, the contract award number, the subcontracting opportunity they (the subcontractor) will perform, the approximate dollar value of the subcontracting opportunity and the expected percentage of the total contract that the subcontracting opportunity represents. A copy of the notice required by this section must also be provided to the contracting agency’s point of contact for the contract no later than ten (10) working days after the contract is awarded.

• The respondent must submit monthly compliance reports (Prime Contractor Progress Assessment Report – PAR) to the contracting agency, verifying its compliance with the HSP, including the use o f and expenditures mad e to its subcontractors (HUBs and Non-HUBs). (The PAR is available at https://www.comptroller.texas.gov/purchasing/docs/hub-forms/ProgressAssessmentReportForm.xls).

• The respondent must seek approval from the contracting agency prior to making any modifications to its HSP, including the hiring of additional or different subcontractors and the termination of a subcontractor the respondent identified in its HSP. If the HSP is modified without the contracting agency’s prior approval, respondent may be subject to any and all enforcement remedies available under the contract or otherwise available by law, up to and including debarment from all state contracting.

• The respondent must, upon request, allow the contracting agency to perform on-site reviews of the company’s headquarters and/or work-site where services are being performed and must provide documentation regarding staffing and other resources.

Printed Name Title Date (mm/dd/yyyy)

Signature

Reminder:

If you responded “Yes” to SECTION 2, Items c or d, you must complete an “HSP Good Faith Effort - Method A (Attachment A)” for each of the subcontracting opportunities you listed in SECTION 2, Item b.

If you responded “No” SECTION 2, Items c and d, you must complete an “HSP Good Faith Effort - Method B (Attachment B)” for each of the subcontracting opportunities you listed in SECTION 2, Item b.

http://www.window.state.tx.us/procurement/prog/hub/hub-forms/progressassessmentrpt.xls

HSP Good Faith Effort - Method A (Attachment A)

Enter your company’s name here:

Requisition #:

IMPORTANT: If you responded “Yes” to SECTION 2, Items c or d of the completed HSP form, you must submit a completed “HSP Good Faith Effort - Method A (Attachment A)” for each of the subcontracting opportunities you listed in SECTION 2, Item b of the completed HSP form. You may photo-copy this page or download the form at https://www.comptroller.texas.gov/purchasing/docs/hub-forms/hub-sbcont-plan-gfe-achm-a.pdf

SECTION A-1: SUBCONTRACTING OPPORTUNITY

Enter the item number and description of the subcontracting opportunity you listed in SECTION 2, Item b, of the completed HSP form for which you are completing the attachment.

Item Number:

Description:

Company Name Texas certified HUB Approximate

Dollar Amount Expected

Percentage of Contract

- Yes - No $

- Yes - No

- Yes - No

- Yes - No

- Yes - No

- Yes - No

- Yes - No

- Yes - No

- Yes - No

- Yes - No

- Yes - No

- Yes - No

- Yes - No

- Yes - No

- Yes - No

- Yes - No

- Yes - No

- Yes - No

- Yes - No

- Yes - No

- Yes - No

- Yes - No

- Yes - No

REMINDER: As specified in SECTION 4 of the completed HSP form, if you (respondent) are awarded any portion of the requisition, you are required to provide notice as soon as practical to all the subcontractors (HUBs and Non-HUBs) of their selection as a subcontractor. The notice must specify at a minimum the contracting agency’s name and its point of contact for the contract, the contract award number, the subcontracting opportunity they (the subcontractor) will perform, the approximate dollar value of the subcontracting opportunity and the expected percentage of the total contract that the subcontracting opportunity represents. A copy of the notice required by this section must also be provided to the contracting agency’s point of contact for the contract no later than ten (10) working days after the contract is awarded.

(Attachment A)

Texas VID or federal EIN Do not enter Social Security Numbers.

If you do not know their VID / EIN, leave their VID / EIN field blank.

SECTION A-2: SUBCONTRACTOR SELECTION

List the subcontractor(s) you selected to perform the subcontracting opportunity you listed above in SECTION A-1. Also identify whether they are a Texas certified HUB and their Texas Vendor Identification (VID) Number or federal Employer Identification Number (EIN), the approximate dollar value of the work to be…