ESBD_549664_1786997389452_06. Subcontracting Plan.pdf

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Attachment B

Veteran Heroes United in Business (VetHUB) Participation

1. State of Texas Subcontracting Plan Requirements

In accordance with Texas Government Code §2161.252, a proposal that does not contain an updated Subcontracting Plan is non-responsive and will be rejected without further evaluation. In addition, if the Department determines the

Subcontracting Plan was not developed with a good-faith effort (GFE), it will reject the proposal for failing to comply with material specifications. Failure to submit complete Subcontracting Plan/GFE documentation may result in the Respondent being deemed nonresponsive.

2. Introduction

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

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

3. Department Administrative Rules

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

VetHUB rules are in the Texas Administrative Code, Title 43, Part 1, Chapter 9, Subchapter L 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 must take priority.

4. Required State of Texas Subcontracting Plan

4.1. 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) must, 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=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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4.2. 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 must document its reasons in writing for the procurement file.

4.3. The Department has determined that subcontracting opportunities are probable for this solicitation. As a result, the respondent must submit a

Subcontracting Plan with their proposal. The Subcontracting Plan is required whether a respondent intends to subcontract or not.

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

Subcontracting Plan.

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

5. CPA Centralized Master Bidders 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:

6. NIGP Class/Item Code: 936-09

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 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

3 - 7 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.

7. Subcontracting Procedures – If a Respondent Intends to Subcontract

The Subcontracting Plan must demonstrate that the respondent made a good-faith effort to comply with the current Department’s policies. The following subparts outline the items the Department will review in determining whether a

Subcontracting Plan meets the good-faith-effort standard. A respondent that intends to subcontract must complete the Subcontracting Plan to document its good-faith efforts.

8. 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.

9. Notify Potential Subcontractors

The Subcontracting Plan must demonstrate that the respondent made a good-faith effort to subcontract with VetHUBs that have an active certification. The respondents’ good-faith efforts must be shown through use of all methods in conformance with the development and submission of the Subcontracting Plan and by complying with the following steps:

9.1. 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.

9.2. Use the appropriate method(s) to demonstrate good-faith effort.

9.2.1. Method 1 - Self Performance

A Respondent who intends to perform 100% of the contract work with their own employees, equipment, and resources must submit the Self Performance Subcontracting Plan prescribed by the State.

The Self Performance Subcontracting Plan must:

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9.2.1.1. Certify that the Respondent will not subcontract any portion of the work; and

9.2.1.2. Demonstrate the Respondent’s capability to perform the entire Scope of Work.

9.2.2. The Respondent may be asked to provide self-performing justification.

9.2.3. A self-performing contractor may not use subcontractors without amending.

9.2.4. The Respondent must submit a change request and an updated

Subcontracting Plan if they intend to subcontract at any time during the life of the contract.

9.2.5. When self-performing, the Respondent is still required to submit a

Subcontracting Plan if the procurement category is one where subcontracting could reasonably occur.

9.2.6. Method 2 - Good-faith Effort

The respondent must submit a Good-Faith-Effort Subcontracting

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

9.2.6.1. Identify each subcontracting opportunity within the Scope of Work.

9.2.6.2. Notify a minimum of two certified VetHUB vendors for each subcontracting opportunity.

9.2.6.3. Provide written notice to each VetHUB vendor that

includes:

9.2.6.3.1. A description of the subcontracting

opportunity.

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

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9.2.6.3.2. Relevant specifications or scope details; and

9.2.6.3.3. A deadline for response. For each VetHUB

vendor, allow a minimum of seven business days to respond.

9.2.7. Maintain documentation of all outreach efforts, including:

9.2.7.1. Names and contact information of VetHUBs contacted.

9.2.7.2. Dates and methods of contact.

9.2.7.3. Copies of written notices.

9.2.7.4. Responses received or lack thereof.

9.2.8. 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.

10. Written Justification of the Selection Process

10.1. The Department will decide if a good-faith effort was made by the respondent in the development of the required Subcontracting Plan. One of the methods listed in the previous sections may be applicable to the respondent’s good-faith efforts in developing and submitting the

Subcontracting Plan. The Department may require the respondent to submit additional documentation explaining how the respondent made a good-faith effort in accordance with the solicitation.

10.2. 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.

11. Post-Award Subcontracting Plan Requirements

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

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11.2. After contract award, the Department will coordinate a post-award meeting with the successful respondent to discuss Subcontracting Plan reporting requirements. The contractor must maintain business records documenting compliance with the Subcontracting Plan and must submit monthly subcontract reports to the Department by completing the “Prime Contractor

Progress Assessment (PAR) Report” and “Subcontracting Plan Progress

Compliance Form - 2579.” The monthly PAR report is required as a condition for payment to report to the agency the identity and the amount paid to all subcontractors.

11.3. As a condition of award, the contractor is required to send notification to all selected subcontractors as identified in the accepted/approved

Subcontracting Plan. 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.

11.4. 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 additional funding, the

Department will evaluate to determine the probability of additional subcontracting opportunities. When applicable, the contractor must submit a

Subcontracting Plan change request for the Department’s review. The requirements for a Subcontracting Plan change request will be covered in the post-award meeting. When making a change to a Subcontracting Plan, the contractor will obtain prior written approval from the Department before making any changes to the Subcontracting Plan. Proposed changes must comply with the VetHUB Program good-faith-effort requirements relating to the development and submission of a Subcontracting Plan. If the contractor decides to subcontract any part of the contract after the award, it must follow the good-faith-effort procedures.

11.5. Failure to meet the Subcontracting Plan and post-award requirements will constitute a breach of contract and will be subject to remedial actions. The

Department may also report noncompliance with the CPA in accordance with the provisions of the Vendor Performance and Debarment Program (see 34 https://texas-sos.appianportalsgov.com/rules-and-meetings?$locale=en_US&interface=VIEW_TAC_SUMMARY&queryAsDate=06%2F05%2F2026&recordId=182631

VetHUB Subcontracting Plan Compliance Checklist Use prior submitting to ensure the Subcontracting Plan will pass CIV review.

1.Subcontracting Opportunity Review ☐ Identify all subcontracting opportunities you will subcontract ☐ Assign the correct NIGP codes to subcontractors ☐ Document estimated percentages and/or dollar values (both or one) 0% goal – requirements still apply on all solicitations 100K or more/probability for sub any subcontracting percentages/dollar value are based on GFE

2.VetHUB Directory Search ☐ Search the CMBL and VetHUB Directory for each NIGP code ☐ Document the search results ☐ If fewer than two VetHUBs exist, include documentation with the Subcontracting Plan

Attach as part of supporting documents/make sure to keep all records of GFE Proof Screen shots, phone logs, e-mail, timestamp, fax etc.

3.Required Notifications ☐ Notify at least two VetHUB vendors when available ☐ Use the official Subcontracting Opportunity Notification Form ☐ Provide 7 full business days to respond ☐ Keep proof of notification (email, timestamp, etc.)

Attach as part of supporting documents to avoid review delay, agency may request all supporting documents when not submitted

4.Response Documentation ☐ Record all responses received ☐ Document non-responses ☐ Provide justification for selection or non-selection

5.Selection Justification ☐ Select subcontractors based on qualifications, capacity, cost, or past performance ☐ Clearly explain why any VetHUB responders were not selected ☐ Do not award work solely based on certification status

1 of 2 Dated: 06/26/2026

6. Final Review ☐ All fields in the plan are complete ☐ All dates are accurate ☐ All NIGP codes match the subcontracting opportunities ☐ The affirmation section is signed and dated NOTE: The Civil Rights (CIV) Division team makes the final compliance determination

If a cursory review has been requested from CIV, ensure sufficient time is allowed for addressing any questions and make any necessary corrections prior to the submission of the response to TxDOT.

E-mail for Cursory Review civ_hub@txdot.gov Subject line: Cursory Review – Subcontracting Plan mailto:civ_hub@txdot.gov

Rev. 6/26

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 head-quarters 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

Reference Code (e.g. NIGP, NAICS, CIS, UNSPSC)

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 % %

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17 % %

18 % %

19 % %

20 % %

21 % %

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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 5.1 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 holidays.

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

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 hir-ing 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

Agency Name Solicitation No.

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:

Required Qualifications:

Bonding and Insurance Requirements:

Other Contract Requirements: Not Applicable

Not Applicable