Rev. 5/26

State of Texas Subcontracting Plan When is a subcontracting plan required?

A subcontracting plan is required for state of Texas contracts when the contracting agency has determined that subcontracting opportunities are probable with prospective vendors certified by the Texas Comptroller through the Veteran Heroes United in Business (VetHUB) program, for a contract with an expected value of $100,000 or more. (Texas Government Code Chapter 2161, Subchapter F; 34 Texas Administrative Code Section 20.285.)

When a state agency requires a subcontracting plan as part of the contract solicitation, a bid, proposal, offer or other applicable expression of interest must contain a completed plan to be considered responsive.

Who completes a subcontracting plan?

Every responding vendor — whether a prime contractor or self-performing with no subcontractors — must submit a complete subcontracting plan.

A vendor who intends to use subcontractors must demonstrate their good faith effort to recruit certified VetHUBs, whether or not they ultimately award business to them. A state agency will not use the subcontractors’ VetHUB status to select the winning vendor. All subcontractors must be listed in the subcontracting plan.

A self-performing vendor who will not subcontract any of the work on the contract must indicate that it will complete the con-tract with its own resources and submit the completed subcontracting plan.

Does a subcontracting plan have to be followed?

The subcontracting plan forms part of the contract. Subcontractors may not be dropped or replaced without amending the subcontracting plan with approval by the agency. A self-performing contractor may not use subcontractors without amending the subcontracting plan.

SUBCONTRACTING PLAN INSTRUCTIONS

The contracting agency must complete this section and include this form in the solicitation.

AGENCY COORDINATOR FOR COURTESY REVIEWS (OPTIONAL)

Name

SOLICITATION POINT OF CONTACT

Name

The contracting agency must describe the subcontracting goal and provide examples of potential subcontracting opportunities. This information may also be included in the solicitation document.

https://statutes.capitol.texas.gov/?tab=1&code=GV&chapter=GV.2161&artSec=2161.251 https://statutes.capitol.texas.gov/?tab=1&code=GV&chapter=GV.2161&artSec=2161.251 https://texas-sos.appianportalsgov.com/rules-and-meetings?chapter=20&division=1&interface=VIEW_TAC&part=1&subchapter=D&title=34

Section 1: Respondent Information

Is your company a state of Texas Certified VetHUB? Yes No

Section 2: Declaration of Self-performing or Subcontracting 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 subcontract-ing opportunities, the respondent must determine what portions of work, including contracted staffing, goods and services will be subcontracted. 34 Texas Administrative Code Section 20.282 defines a “Subcontractor” as an entity that contracts with a prime contractor to work or contribute toward completing work under a purchase order or other contract. The term does not include employees of the contractor but includes contracted workers who will work on the contract.

Will your company fulfill the entire contract with its own resources, including employees, goods and services?

Section 3: Affirmation of Self-performing Contractor 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 subcontracting plan is true and correct. Respondent understands and agrees that, if awarded any portion of the contract:

• The respondent must seek approval from the contracting agency prior to making any modifications to its subcontracting plan, including hiring subcontractors to perform any work under this contract. If the subcontracting plan is modified with-out 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 headquar-ters and/or work site where services are being performed and must provide documentation regarding staffing and other resources.

Section 4: Respondent’s Subcontracting Opportunities This section must be completed by all respondents who propose to subcontract portions of the contract work.

List below all opportunities (commodities, services or contractor staffing) you will subcontract. Also, based on the total value of the contract, provide the percentage of the contract you expect to subcontract to certified VetHUBs, and the percentage of the contract you expect to award to other subcontractors.

Search NIGP Code Book at https://commbook.app.cpa.state.tx.us/

Item Number Subcontracting Opportunity Description NIGP Code

VetHUB-certified subcontracted percentage of total contract

Other subcontracted percentage of total contract

1 % %

2 % %

3 % %

4 % %

5 % %

6 % %

7 % %

8 % %

9 % %

10 % %

11 % %

12 % %

13 % %

14 % %

15 % %

16 % %

17 % %

18 % %

19 % %

20 % %

21 % %

22 % %

23 % %

24 % %

25 % % https://commbook.app.cpa.state.tx.us/

Section 5: Subcontracting Plan – Good Faith Effort

Section 5.1: Subcontracting Opportunity Submit a copy of Section 5 for each subcontracting opportunity you listed in Section 4. Download additional forms at https://comptroller.texas.gov/purchasing/vendor/hub/forms.php.

Enter the item number and description of the subcontracting opportunity you listed in Section 4.

Item Number Subcontracting Opportunity

Section 5.2 Mentor Protégé Program If respondent is participating as a mentor in a state of Texas Mentor Protégé Program, submitting a protégé (protégé must be a state of Texas certified VetHUB) as a subcontractor to perform the subcontracting opportunity listed in Section 5.1 constitutes a good faith effort for that specific portion of work.

Check the appropriate box (Yes or No) that indicates whether you will be subcontracting the portion of work you listed in Sec-tion B-1 to your protégé.

No. Go to Section 5.3: Notification of Subcontracting Opportunity.

Yes. Go to Section 5.4: Subcontractor Selection.

Section 5.3 Notification of Subcontracting Opportunity Demonstrate your good faith effort to notify Texas certified VetHUBs by communicating each subcontracting opportunity you listed in Section 4.

Search the VetHUB Directory by business category or NIGP code to identify appropriate VetHUBs that work in the area where you are seeking subcontractors. Certified VetHUBs can be sourced using the VetHUB-only search and will be marked with the Active Bidder (A-Approved) VetHUB status.

Send either the Subcontracting Opportunity Notification template or an email notice that includes at minimum:

• Scope of work

• Location to review plans and specifications (if applicable)

• Bonding and insurance requirements

• Required qualifications

• Name of state agency

• State agency’s point of contact

• State agency point of contact’s phone number

• Requisition/solicitation number

• Prime contractor’s contact name

• Prime contractor’s contact email

• Prime contractor’s contact phone number

• Date response required; allow at least seven business days for response excluding weekends and state holi-days.

Save copies of emails sent to VetHUBs and the responses received and attach to your subcontracting plan to document the good faith effort. A contract shall not be awarded to a prime contractor whose subcontracting plan good faith effort does not contain accurate supporting documentation.

List two VetHUBs you notified of the subcontracting opportunity listed in Section 5.3. Include the company’s Texas Vendor Iden-tification (VID) Number, the date of the notice and indicate whether the HUB responded.

Company Name Texas VID

(Do not enter Social Security Nos.)

Date Notice Sent

(mm/dd/yyyy)

VetHUB Response

Yes No

Yes No https://comptroller.texas.gov/purchasing/vendor/hub/forms.php https://mycpa.cpa.state.tx.us/tpasscmblsearch/tpasscmblsearch.do https://comptroller.texas.gov/purchasing/vendor/hub/forms.php

Section 5.4 Subcontractor Selection A copy of Section 5 must be completed for each subcontracting opportunity you listed in Section 4. Download additional forms at https://comptroller.texas.gov/purchasing/vendor/hub/forms.php.

Company Name Certified VetHUB

Texas VID or Federal EIN

(Do not enter Social Security Nos.)

Approximate Dollar Amount

Expected Percentage of

Contract

Yes No $ %

Yes No $ %

Yes No $ %

Yes No $ %

Yes No $ %

Yes No $ %

Section 6: Affirmation of Prime Contractor I am an authorized representative of the respondent listed in Section 1 (“Respondent”). I affirm that the information and sup-porting documentation submitted with this subcontracting plan is true and correct. Respondent understands and agrees that, if awarded a contract:

• Respondent will promptly notify all the subcontractors of their selection as a subcontractor for the contract. The notice must specify the contracting agency’s name, point of contact for the contract, the contract award number, the subcon-tracting opportunity the subcontractor will perform and the value of the subcontract.

• Respondent must obtain approval from the contracting agency prior to modifying its subcontracting plan, including hiring subcontractors to perform any work under this contract.

• Respondent must submit progress assessment reports (PAR) with each invoice to the contracting agency. The PAR tem-plate is available on the Comptroller’s website.

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

Subcontracting Opportunity Notification Form

If your business is interested in bidding on the subcontracting opportunity identified in Section C, please reply by the date listed.

Section A: Prime Contractor’s Information

Company Name

Section B: Contracting State Agency Information

Section C: Due Date and Description

Subcontracting Opportunity

Time and Date Response Due (minimum seven business days):

Time_ ___________ a.m. p.m. on Date (mm/dd/yyyy)______________

Subcontracting Opportunity Scope of Work: Not Applicable

Required Qualifications: Not Applicable

Bonding and insurance requirements: Not Applicable

Other contract requirements: Not Applicable

Location to review plans/specifications: Not Applicable