THE UNIVERSITY OF TEXAS MEDICAL BRANCH AT GALVESTON ISSUED DATE: 09/17/00
PURCHASING DEPARTMENT OPERATING PROCEDURES REVISED DATE: 1/2015
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SECTION 5 HUB PROGRAM
SUBJECT 5.20 HUB SUBCONTRACTING
PURPOSE
This procedure establishes guidelines to increase the utilization of Historically Underutilized Business (HUB) firms in the award of Subcontracts for the procurements of goods and services consistent with rules, regulations and goals established by the responsible State of Texas Agency and UTMB.
SCOPE
Applicable to procurement requests of $100,000 or more processed by Procurement Staff and designated Satellite Buyers.
JOC Construction: Applicable procurement request of $85,000.00 or more processed by Procurement Staff or designated Satellite Buyers.
AUDIENCE
Applicable to all Procurement Staff and designated Satellite Buyers.
GUIDELINES
1. Subcontracting Requirements
In accordance with Government Code, Section 2161, and Texas Administrative Code, Section 20.14, for all orders with an estimated total purchase price of $100,000 or more, the Buyer in consultation with the HUB Program Coordinator shall determine whether a Subcontracting opportunity exists. In to order maximize HUB participation, all solicitations where Subcontracting opportunities have been identified shall be advertised for a minimum of 21 calendar days.
A. If a Subcontracting opportunity exists, the bid solicitation (RFP, ITB, RFB, etc.) must include one of the following “Subcontracting Declarations” in the solicitations;
Subcontracting Declaration
UTMB has reviewed this solicitation in accordance with Chapter 34, Texas Administrative Code, Section 20.14 and has determined that subcontracting opportunities are probable under this solicitation. Accordingly, a HUB Subcontracting Plan (HSP) is required as a part of your proposal. The HSP shall be developed and administered in accordance with the UTMB Policy on Utilization of Historically Underutilized Businesses (HUBs). The HSP Package, including the required forms and instructions, can be accessed via the UTMB’s HUB Program website at www.utmb.edu/supplychain/hub/default.asp
Respondent must complete and submit the HSP Documents as part of your Proposal. Failure to do so will result in your Proposal being disqualified.
If you have any questions or need assistance please contact UTMB’s HUB Program Coordinator at (409) 747-8000.
B. If a Subcontracting opportunity does not exist, the solicitation must include the following “Non-Subcontracting Declaration” in the Notice to Bidder’s section. Additionally, the bid file shall include documentation justifying the opinion that a Subcontracting opportunity does not exist.
Non-Subcontracting Declaration
UTMB has reviewed this solicitation in accordance with Chapter 20, Texas Administrative Code Section 20.14 and has determined that subcontracting opportunities are not probable under this solicitation.
If your company does intend to subcontract any portion of the work, your proposal must include a “HUB Subcontracting Plan” (HSP). The HSP Package, including the required forms and instructions, can be accessed via the UTMB’s HUB Program website at www.utmb.edu/supplychain/hub/default.asp
If you have any questions or need assistance please contact UTMB’s HUB Program Coordinator at (409) 747-8000.
C. Additionally, if a Subcontracting opportunity does not exist, the Buyer shall complete the “Buyer’s Declaration of Non-Subcontracting Opportunities” form (ref. Attachment A). The form must be reviewed and approved by the HUB Program Coordinator and included in the Purchase Order or Contract File. It is the Buyer’s Responsibility to gather the information submitted in the Buyer’s Declaration and present it to the HUB Program Coordinator for review. If there are any deficiencies in the document the HUB Coordinator will ask for the document to be revised.
2. Prior Evaluation and Award Review
Prior to evaluation of all bid solicitations with a total value of $100,000 or greater, where a Subcontracting opportunity was determined, shall be reviewed by the HUB Program Coordinator. The HUB Program Coordinator shall determine whether the bid/proposal complies with all HUB requirements. If a bid/proposal does not comply with the HUB requirements, it shall be disqualified from consideration of award.
HUB Plan reviews shall be done within the following time frames: 48 hours for all bid types including Competitive Sealed Proposals. For Construction Manager at Risk method of procurement; 72 hours will be required. (Any changes to the review policy will need to be approved by the HUB Coordinator and the Associate VP for Supply Chain)
3. Contract or Purchase Order Requirements
A. All Contracts or Purchase Orders issued in response to a solicitation where a Subcontracting opportunity was determined shall incorporate the “HUB Subcontracting Plan” submitted by the vendor. If at any time during the term of the contract, the selected respondent desires to make changes to the approved HUB Subcontracting Plan, proposed changes must be received for prior review and approval by the HUB Coordinator and buyer/manager responsible for the procurement. In addition, the departmental subject matter expert should be consulted.
4. HUB Subcontracting Plan Audits
A. On a semi-annual basis, the individual responsible for administration of the Contract will conduct an audit of all Contracts or Purchase Orders they are responsible for that include a HUB Subcontracting Plan. Such audits will, at a minimum, consist of:
· Contractor, and Contractor’s Performance, is in compliance with the HUB Subcontracting Plan
· Payments to HUB Subcontractors are in compliance with the HUB Subcontracting Plan
Results of each audit will be documented and submitted to the HUB Program Coordinator for review and disposition. A copy of the audit and documentation of any action taken, if applicable, will be placed in the Contract File and the Vendor File, if applicable.
B. If a vendor’s performance with the HUB Subcontracting Plan is deficient, as determined by the HUB Program Coordinator from the Buyers’ audit; the vendor may, in addition to any other remedies, be subject to disbarment from any further procurement opportunities with UTMB.
JOC CONTRACTS:
· The Construction Manager (CM) sends the RFP to the JOC contractor (if the project manager prepares the RFP they should provide the documents to the CM for processing)
1. If the estimate for the project is over 85K; the CM requests a HUB Plan along with the RFP.
· The estimate is returned to the CM by the JOC contractor with a copy of the HUB Plan.
· The CM sends a copy of the HUB plan to the HUB Program Coordinator for review/approval.
· The HUB Program Coordinator reviews and sends approval back to the CM –
1. If the HUB Plan is deficient then the HUB Program Coordinator returns the HUB Plan to the CM with instructions for correcting the deficiency. The HUB Coordinator will work with the JOC contractor upon request of the CM.
· The CM submits the approved HUB plan and approved RS Means estimate to the Team Coordinator
· The Team Coordinator issues requisition and copies the CM
· CM issues a Notice to Proceed with a copy of the requisition
** Note: The buyer who issues the purchase order is responsible for ensuring the HUB Coordinator receives a copy of the Purchase order and the HUB Plan in order for subcontracting on the project to be tracked.
BUYERS DECLARATIONS:
The Buyer is responsible for completing the Buyer’s Declaration stating that no Subcontracting Opportunities exist. In addition, the buyer is responsible for providing detailed information as back-up for their determination.
EXCEPTIONS
Any exceptions must be in writing and authorized by the Manager of Supplier Diversity/ HUB Coordinator.
REFERENCES
Logistics/Acquisition Procedure 5.10 (Historically Underutilized Businesses)
UT System – UTS137
Government Code; Section 2161
Texas Administrative Code; Section 20.14
5.20 HUB Subcontracting
Approved: Karen L. Gross, C.P.M, CPPB, CTPM
Manager, Supplier Diversity Programs
Attachments:
A – Buyer’s Declaration Of Non-Subcontracting Opportunities Form