ESBD_508552_1776719325142_05. VetHUB Participation.pdf

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Attachment A

Veteran Heroes United in Business Participation

I.3 VetHUB Subcontracting Plan Requirements

In accordance with Texas Government Code §2161.252, a proposal that does not contain an up-to-date VetHUB 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 specification.

I.3.1 Introduction

The Department is committed to promoting full and equal business opportunities for businesses seeking to participate in state contracting and shall make a good‑faith effort to increase participation by contracting directly with

Veteran‑Owned Businesses (VetHUBs) or indirectly through subcontracting opportunities.

I.3.2 Department Administrative Rules

The Department has adopted CPA’s VetHUB rules as its own. The Department’s

VetHUB rules are in Title 43, Part 1, Chapter 9, Subchapter L of the Texas

Administrative Code, and the CPA rules are 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 VetHUB 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.

http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.2161.htm https://comptroller.texas.gov/purchasing/vendor/hub/forms.php https://texas-sos.appianportalsgov.com/rules-and-meetings?chapter=9&interface=VIEW_TAC&part=1&subchapter=I&title=43 https://texas-sos.appianportalsgov.com/rules-and-meetings?chapter=20&division=1&interface=VIEW_TAC&part=1&subchapter=D&title=34 https://texas-sos.appianportalsgov.com/rules-and-meetings?chapter=20&division=1&interface=VIEW_TAC&part=1&subchapter=D&title=34

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In accordance with 34 T.A.C. §20.285(a),(1),(C) of the VetHUB 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.

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.

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.

I.3.5 CPA Centralized Master Bidder’s List

Respondents may search for VetHUB 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: 845-49

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 or recommend or 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.

https://texas-sos.appianportalsgov.com/rules-and-meetings?interface=VIEW_TEXAS_REGISTER_SUMMARY&recordId=457245 https://mycpa.cpa.state.tx.us/tpasscmblsearch/index.jsp https://mycpa.cpa.state.tx.us/tpasscmblsearch/index.jsp

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

Subcontract

The HSP must demonstrate that the respondent made a good faith effort to comply with the current Department’s policies. 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 and must complete the HSP to document its good faith efforts.

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 subcontracting 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 Subcontractors

The HSP must demonstrate that the respondent made a good faith effort to subcontract with VetHUBs that have an active 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 an 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(s) to demonstrate good faith effort.

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

Vet HUBs:

The respondent must identify in the HSP, the VetHubs, with an active certification, which will be utilized and submit written documentation that

4 - 8 confirms 100% of all available subcontracting opportunities will be performed by one or more VetHUBs.

I.3.6.4 Method 2: Respondent Intends to Subcontract with HUBs and Non-HUBs (Meet or Exceed the Goal):

The respondent must identify in the HSP and submit written documentation that one or more VetHubs, with an active certification, will be utilized; and that the aggregate expected percentage of subcontracts with VetHUBs will meet or exceed the goal specified in this solicitation.

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 Vet

HUBs 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:

I.3.6.5.1 Written notification veteran, trade organizations, or development centers to assist in identifying potential

VetHUBs, with an active certification, of the subcontracting opportunities the respondent intends to subcontract.

Respondents must give trade organizations or development centers at least seven (7) working days prior to submission of the respondent's response for dissemination of the subcontracting opportunities to their members. A list of organizations is located on the CPA’s website at the Small Business Resource

Links:

https://comptroller.texas.gov/purchasing/vendor/hu b/resources.php https://comptroller.texas.gov/purchasing/vendor/hub/resources.php https://comptroller.texas.gov/purchasing/vendor/hub/resources.php

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I.3.6.5.2 Written notification to at least three (3) VetHUB businesses, with an active certification, 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:

• a description of the scope of work to be subcontracted,

• information regarding the location to review project plans or specifications,

• information about bonding and insurance requirements,

• required qualifications and other contract requirements, and

• a description of how the subcontractor can contact the respondent.

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

Respondents must also use CMBL, the VetHUB

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 help in identifying qualified applicants for the VetHUB program.

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I.3.6.6 Method 4: Respondent Does Not Intend to Subcontract:

When the respondent plans to complete all contract requirements with their 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:

I.3.6.6.1 Provide evidence of sufficient respondent staffing to meet the solicitation requirements, I.3.6.6.2 Provide monthly payroll records showing the respondent staff fully dedicated to the contract, I.3.6.6.3 Allow the Department to conduct an onsite review of company headquarters or work site where services are to be performed, and, I.3.6.6.4 Provide documentation proving employment of qualified personnel holding the necessary licenses and certificates required to perform the Scope of

Work.

I.3.7 Written Justification of the Selection Process

The Department will decide 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.

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A respondent must provide written justification for 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, who were the best value responsive bidders.

CPA HSP Quick Checklist & HUB Subcontracting Plan (HSP)

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 “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.

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

VetHUB Program Office within 10 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 will obtain prior written approval from the Department before making any changes to the HSP. Proposed changes must comply with the VetHUB Program https://comptroller.texas.gov/purchasing/vendor/hub/forms.php https://comptroller.texas.gov/purchasing/vendor/hub/forms.php https://comptroller.texas.gov/purchasing/vendor/hub/forms.php https://comptroller.texas.gov/purchasing/vendor/hub/forms.php

8 - 8 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.

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