ESBD_497199_1773758994922_05. VetHUB Participation.pdf

1/2/2026

Attachment A Veteran Heroes United in Business Participation

I.3 Veteran Heroes United in Business Participation

In accordance with Texas Government Code §2161.252, a proposal that does not contain a HUB Subcontracting Plan (HSP) is non-responsive and will be rejected without further evaluation. In addition, if the Department determines that the HSP was not developed in good faith, it will reject the proposal for failing to comply with material specifications based on the solicitation.

I.3.1 Introduction

The Department is committed to promoting full and equal business opportunities for businesses in state contracting. The Department encourages the use of Veteran Heroes United in Business (VetHUB) Businesses.

Pursuant to Texas Government Code §2161.181 and §2161.182, and the Department’s VetHUB policy and rules, the Department is required to make a good faith effort to increase VetHUB participation in its contracts. The Department may accomplish the goal of increased VetHUB participation by contracting directly with VetHUBs or indirectly through subcontracting opportunities.

I.3.2 Department’s Administrative Rules

The Department has adopted the CPA’s VetHUB rules as its own. The Department’s VetHUB rules are located in Title 43, Part 1, Chapter 9, Subchapter L of the Texas Administrative Code, and the CPA rules are located in Title 34, Part 1, Chapter 20, Subchapter D, Division 1. If there are any discrepancies between the Department’s administrative rules and this solicitation, the rules shall take priority.

I.3.3 VetHUB Participation Goal

The VetHUB participation goal for this contract is 0% per fiscal year.

I.3.4 Required HUB Subcontracting Plan

In accordance with Government Code, Chapter 2161, Subchapter F, each state agency that considers entering into a contract with an expected value of $100,000 or more over the life of the contract (including any renewals) shall, before the agency solicits bids, proposals, offers, or other applicable expressions of interest, determine whether subcontracting opportunities are probable under the contract.

In accordance with 34 T.A.C. §20.285(a),(1),(C) of the HUB Rules, State agencies may determine that subcontracting is probable for only a subset of the work expected to be performed or the funds to be expended under the contract. If an agency determines that subcontracting is probable on only a portion of a contract, it shall document its reasons in writing for the procurement file.

1-5 http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.2161.htm https://comptroller.texas.gov/purchasing/vendor/hub/forms.php https://comptroller.texas.gov/purchasing/vendor/hub/forms.php http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.2161.htm http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.2161.htm http://texreg.sos.state.tx.us/public/readtac%24ext.ViewTAC?tac_view=5&ti=43&pt=1&ch=9&sch=L&rl=Y http://texreg.sos.state.tx.us/public/readtac%24ext.ViewTAC?tac_view=5&ti=34&pt=1&ch=20&sch=D&div=1&rl=Y http://texreg.sos.state.tx.us/public/readtac%24ext.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

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The Department has determined that subcontracting opportunities are probable for this solicitation. As a result, the respondent must submit an HSP with its proposal. The HSP is required whether a respondent intends to subcontract or not.

In the HSP, a respondent must indicate whether it is a Texas certified VetHUB. Being a certified VetHUB does not exempt a respondent from completing the HSP requirement.

The Department shall review the documentation submitted by the respondent to determine if a good faith effort has been made, in accordance with solicitation and HSP requirements. During the good faith effort evaluation, The Department may, at its discretion, allow clarifications or enhancements to information submitted with the HSP.

If the Department determines that the respondent’s HSP was not developed in good faith, the HSP will be considered non-responsive and will be rejected as a material failure to comply with the advertised specifications. The reasons for rejection shall be recorded in the procurement file.

In accordance with Government Code, Chapter 2161, Subchapter F, each state agency that considers entering into a contract with an expected value of $100,000 or more over the life of the contract (including any renewals) shall, before the agency solicits bids, proposals, offers, or other applicable expressions of interest, determine whether subcontracting opportunities are probable under the contract.

I.3.5 CPA Centralized Master Bidder’s List

Respondents may search for HUB subcontractors in the CPA’s Centralized Master Bidders List (CMBL)/ VetHUB Directory. For this procurement, the Department has identified the following class and item codes for potential subcontracting opportunities:

NIGP Class/Item Code 635/45

Respondents are not required to use, nor limited to using, the class and item codes identified above, and may identify other areas for subcontracting.

The Department does not endorse, recommend nor attest to the capabilities of any company or individual listed on the CPA’s CMBL. The list of certified VetHUBs is subject to change, so respondents are encouraged to refer to the CMBL often to find the most current listing of VetHUBs.

I.3.6 HUB Subcontracting Procedures – If a Respondent Intends to Subcontract

An HSP must demonstrate that the respondent made a good faith effort to comply with the Department’s HUB policies and procedures. The following subparts outline the items that the Department 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. A training presentation on how to complete the HSP is available at https://www.txdot.gov/business/disadvantaged-small- business-enterprise/hub.html.

I.3.6.1 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 VetHUB participation, it should divide the contract work into reasonable lots or portions, to the extent consistent with prudent industry practices.

I.3.6.2 Notify Potential VetHUB Subcontractors https://mycpa.cpa.state.tx.us/tpasscmblsearch/index.jsp https://mycpa.cpa.state.tx.us/tpasscmblsearch/index.jsp https://mycpa.cpa.state.tx.us/tpasscmblsearch/index.jsp https://nam11.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.txdot.gov%2Fbusiness%2Fdisadvantaged-small-business-enterprise%2Fhub.html&data=05%7C02%7CKurt.Wells%40txdot.gov%7Ce7e688b7e8f648911bb508dd1fadaaee%7C39dba4765c094c6391dace7a3ab5224d%7C0%7C0%7C638701553092888061%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=MVq1CKplmmIp460D5qVaPwScTkX%2FVhCV6fkzI%2BnvSDE%3D&reserved=0 https://nam11.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.txdot.gov%2Fbusiness%2Fdisadvantaged-small-business-enterprise%2Fhub.html&data=05%7C02%7CKurt.Wells%40txdot.gov%7Ce7e688b7e8f648911bb508dd1fadaaee%7C39dba4765c094c6391dace7a3ab5224d%7C0%7C0%7C638701553092888061%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=MVq1CKplmmIp460D5qVaPwScTkX%2FVhCV6fkzI%2BnvSDE%3D&reserved=0 https://nam11.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.txdot.gov%2Fbusiness%2Fdisadvantaged-small-business-enterprise%2Fhub.html&data=05%7C02%7CKurt.Wells%40txdot.gov%7Ce7e688b7e8f648911bb508dd1fadaaee%7C39dba4765c094c6391dace7a3ab5224d%7C0%7C0%7C638701553092888061%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=MVq1CKplmmIp460D5qVaPwScTkX%2FVhCV6fkzI%2BnvSDE%3D&reserved=0

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The HSP must demonstrate that the respondent made a good faith effort to subcontract with VetHUBs that have an active VetHUB certification. 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:

I.3.6.2.1 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.

I.3.6.2.2 Use the appropriate method to demonstrate good faith effort. The respondent can use either method(s) 1, 2, or 3:

I.3.6.3 Method 1: Respondent Intends to Subcontract with only VetHUBs:

The respondent must identify in the HSP the VetHUBs that will be utilized and submit written documentation that confirms 100% of all available subcontracting opportunities will be performed by one or more VetHUBs; or, I.3.6.4 Method 2: Respondent Intends to Subcontract with VetHUBs and Non-VetHUBs (Meet or Exceed the Goal):

The respondent must identify in the HSP and submit written documentation that one or more VetHUBs, with an active VetHUB certification, will be utilized; and that the aggregate expected percentage of subcontracts with VetHUBs will meet or exceed the goal specified in this solicitation. Only VetHUB subcontractors that have an existing contract with the respondent for less than five years may be used to comply with the good faith effort requirements under this method.

When the aggregate expected percentage of subcontracts with VetHUBs meets or exceeds the goal specified in this solicitation, respondents may also use non-VetHUB subcontractors; or, I.3.6.5 Method 3: Respondent Intends to Subcontract with VetHUBs and Non-VetHUBs (Does Not Meet or Exceed the Goal):

The respondent must identify in the HSP and submit documentation regarding both of the following requirements:

• Written notification to trade organizations or development centers to assist in identifying potential VetHUBs of the subcontracting opportunities the respondent intends to subcontract.

Respondents must give trade organizations or development centers at least seven (7) business days prior to submission of the respondent's response for dissemination of the subcontracting opportunities to their members.

• Written notification to at least three (3) VetHUB businesses of the subcontracting opportunities that the respondent intends to subcontract. The written notice must be sent to potential VetHUB subcontractors prior to submitting proposals and must include:

o a description of the scope of work to be subcontracted, o information regarding the location to review project plans or specifications, o information about bonding and insurance requirements, o required qualifications and other contract requirements, and o a description of how the subcontractor can contact the respondent.

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Respondents must give potential VetHUB subcontractors a reasonable amount of time to respond to the notice, at least seven (7) business days prior to submission of the respondent's response unless circumstances require a different time-period, which is determined by the agency and documented in the contract file;

Respondents must also use the CMBL, the HUB Directory, and Internet resources when searching for VetHUB subcontractors. Respondents may rely on the services of contractor groups; local, state and federal business assistance offices; and other organizations that provide assistance in identifying qualified applicants for the VetHUB program.

I.3.6.6 Written Justification of the Selection Process

The Department will determine if a good faith effort was made by the respondent in the development of the required HSP. One or more of the methods identified in the previous sections may be applicable to the respondent’s good faith efforts in developing and submission of the HSP. The Department may require the respondent to submit additional documentation explaining how the respondent made a good faith effort in accordance with the solicitation.

A respondent must provide written justification of its selection process if it chooses a non- VetHUB subcontractor. The justification should demonstrate that the respondent negotiated in good faith with qualified VetHUB bidders, and did not reject qualified VetHUBs, with an active VetHUB certification.

I.3.7 Method 4: Respondent Does Not Intend to Subcontract

When the respondent plans to complete all contract requirements with its own equipment, supplies, materials and/or employees, it is still required to complete an HSP.

The respondent must complete the “Self-Performance Justification” portion of the HSP, and attest that it does not intend to subcontract for any goods or services, including the class and item codes identified in Section I.3.5. 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 or provide a statement explaining how it will complete the Scope of Work using its own resources.

The respondent must agree to comply with the following if requested by the Department:

• provide evidence of sufficient respondent staffing to meet the solicitation requirements,

• provide monthly payroll records showing the respondent staff fully dedicated to the contract,

• allow the Department to conduct an onsite review of company headquarters or work site where services are to be performed, and,

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

I.3.8 Post-award HSP Requirements

The HUB Subcontracting Plan (HSP) shall be reviewed and evaluated prior to contract award and, if accepted, the finalized HSP will become part of the contract with the successful respondent(s).

After contract award, the Department will coordinate a post-award meeting with the successful respondent to discuss HSP reporting requirements. The contractor must maintain business records documenting compliance with the HSP, and must submit monthly subcontract reports to the Department by completing the VetHUB “Prime Contractor Progress Assessment Report” and “HUB Subcontracting Plan (HSP) Progress Compliance Form - 2579”. This monthly report is required as a condition for payment to report to the agency the identity and the amount paid to all subcontractors.

https://comptroller.texas.gov/purchasing/vendor/hub/forms.php https://comptroller.texas.gov/purchasing/vendor/hub/forms.php

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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 must be provided to the agency’s Contract Manager and/or HUB Program Office within 10 business days of the contract award.

During the term of the contract, if the parties in the contract amend the contract to include a change to the scope of work or add additional funding, the Department will evaluate to determine the probability of additional subcontracting opportunities. When applicable, the Contractor must submit an HSP change request for the Department’s review. The requirements for an HSP change request will be covered in the post-award meeting.

When making a change to an HSP, the Contractor must obtain prior written approval from the Department before making any changes to the HSP. Proposed changes must comply with the VetHUB Program good faith effort requirements relating to the development and submission of an

HSP.

If the contractor decides to subcontract any part of the contract after the award, it must follow the good faith effort procedures outlined in Section I.3.6 of this attachment (e.g., divide work into reasonable lots, notify at least three (3) vendors per subcontracted area, provide written justification of the selection process, or participate in the Mentor Protégé Program).

For this reason, the Department encourages respondents to identify, as part of their HSP, multiple subcontractors able to perform the work in each area the respondent plans to subcontract. Selecting additional subcontractors may help the selected contractor make changes to its original HSP, when needed, and will allow the Department to approve any necessary changes expeditiously.

Failure to meet the HSP and post-award requirements will constitute a breach of contract and will be subject to remedial actions. The Department may also report noncompliance to the CPA in accordance with the provisions of the Vendor Performance and Debarment Program (see 34 T.A.C. §20.585 relating to Debarment) and (see 34 T.A.C. §20.586 relating to Procedures for Investigations and Debarment).

http://texreg.sos.state.tx.us/public/readtac%24ext.TacPage?sl=R&app=9&p_dir&p_rloc&p_tloc&p_ploc&pg=1&p_tac&ti=34&pt=1&ch=20&rl=585 http://texreg.sos.state.tx.us/public/readtac%24ext.TacPage?sl=R&app=9&p_dir&p_rloc&p_tloc&p_ploc&pg=1&p_tac&ti=34&pt=1&ch=20&rl=585 http://texreg.sos.state.tx.us/public/readtac%24ext.TacPage?sl=R&app=9&p_dir&p_rloc&p_tloc&p_ploc&pg=1&p_tac&ti=34&pt=1&ch=20&rl=586 http://texreg.sos.state.tx.us/public/readtac%24ext.TacPage?sl=R&app=9&p_dir&p_rloc&p_tloc&p_ploc&pg=1&p_tac&ti=34&pt=1&ch=20&rl=586

Reminder:

RespondentPointofContact-2: