The THC purchasing team participates in a Historically Underutilized Businesses program and a Mentor-Protégé program:
Historically Underutilized Business (HUB) Subcontracting Plan
In accordance with 34 TAC §20.13, THC shall make a good faith effort to utilize Historically Underutilized Businesses (HUBs) in contracts for construction, services (including professional and consulting services) and commodities purchases.
In procuring goods and services through contracts, the THC makes a good faith effort to meet or exceed statewide goals for HUB participation for the contracts that the agency expects to award in any appropriation year. The THC bases its HUB goals on the following statewide goals established by the Comptroller of Public Accounts:
- 11.2 percent for heavy construction other than building contracts
- 21.1 percent for all building construction, including general contractors and operative builders’ contracts
- 32.9 percent for all special trade construction contracts
- 23.7 percent for all professional services contracts
- 26.0 percent for all other services and contracts
- 21.1 percent for commodities contracts
It is the policy of THC to achieve the annual program goals by contracting directly with HUBs or indirectly through subcontracting opportunities in accordance with Government Code, Chapter 2161, Subchapter F and comptroller HUB Rules, TAC §20.10.
HUB Subcontracting Plan (HSP) Procedures
- In accordance with Government Code, Chapter 2161, Subchapter F and the CPA’s HUB Rules, TAC, §20.13 and §20.14, THC, 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.
(1) THC shall use the following steps to determine if subcontracting opportunities are probable under the contract:
- Exam the scope of work to be performed under the proposed contract and determine if it is likely that some of the work may be performed by a subcontractor;
- Research the Centralized Master Bidders List, the HUB Directory, the Internet, and other directories, identified by the CPA, for HUBs that may be available to perform the contract work: and
- THC 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 THC determines that subcontracting is probable on only a portion of a contract, it shall document its reasons in writing for the procurement file.
(2) In addition, determination of subcontracting opportunities may include, but is not limited to, the following:
- Contacting other state agencies and institutions of higher education to obtain information regarding similar contracting and subcontracting opportunities: and
- Reviewing the history of similar agency purchasing transactions.
b. Receipt of HUB subcontracting plans.
(1) If, through the analysis in subsection (a) of this section, THC determines that subcontracting opportunities are probable, then its invitation for bids, request for proposals or other purchase solicitation documents shall state that probability and require a HUB subcontracting plan. A bid, proposal, offer, or other expression of interest to such a solicitation must include a completed HUB subcontracting plan to be considered responsive.
(2) The HUB subcontracting plan shall be submitted with the respondent’s response on or before the due date for responses, except for construction contracts involving alternate delivery methods. For construction contracts involving alternative delivery methods, the HUB subcontracting plan may be submitted up to 24 hours following the date/time that responses are due provided that responses are not opened until the HUB subcontracting plan is received.
(3) Responses that do not include a completed HUB subcontracting plan in accordance with 34 TAC §20.14(b) shall be rejected due to material failure to comply with Government Code §2161.252(b).
(4) If a properly submitted HUB subcontracting plan contains minor deficiencies (e.g., failure to sign or date the plan, failure to submit already-existing evidence that three HUBs were contacted), THC may contact the respondent for clarification to the plan if it contains sufficient evidence that the respondent developed and submitted the plan in good faith.
c. Requirements of a HUB subcontracting plan.
(1) THC shall require a respondent to state whether it is a certified HUB. THC shall also require a respondent to state overall subcontracting and overall certified HUB subcontracting to be provided in the contract. Respondents shall follow procedures in paragraph (2)(A) – (D) of this subsection when developing the HUB subcontracting plan.
(2) The HUB subcontracting plan shall include the THC’s HUB goals for its HUB business plan, and shall consist of completed forms prescribed by the comptroller and shall include the following:
- Certification that respondent has made a good faith effort to meet the requirements of this section;
- Identification of the subcontractors that will be used during the course of the contract;
- The expected percentage of work to be subcontracted; and
- The approximate dollar value of that percentage of work.
(3) The successful respondent shall provide all additional documentation required by THC to demonstrate compliance with good faith requirements prior to contract award. If the successful respondent fails to provide supporting documentation (phone logs, fax transmittals, electronic mail, etc.) within the timeframe specified by THC to demonstrate compliance with this subsection prior to contract award, that respondent’s bid/proposal shall be rejected for material failure to comply with advertised specifications and state law.
d. Establishing good faith effort by respondent.
(1) Any person submitting a bid, proposal, offer or other applicable expression of interest in obtaining a contract with THC shall submit a completed HUB subcontracting plan demonstrating evidence of good faith effort in developing that plan. Good faith effort shall be shown through utilization of all methods specified below, and in full conformance with any directions for demonstrations and submission specified in the HUB subcontracting plan template.
- Divide the contract work into reasonable lots or portions to the extent consistent with prudent industry practices.
- Provide written justification of the selection process if the selected subcontractor is not a HUB.
- Provide notice to minority or women trade organizations or development centers according to methods established by the comptroller to assist in identifying HUBs by disseminating subcontracting opportunities to their membership/participants. The notice shall, in all instances, include scope of work, information regarding location to review plans and specifications, information about bonding and insurance requirements, and identify contact person. Respondent must provide notice to organizations or development centers no less than seven (7) working days prior to submission of the response unless circumstances require a different time period, which is determined by the THC and documented in the contract file.
- Provide documentation of meeting one or more of the following requirements:
- Notify at least three (3) HUB businesses of the subcontracting opportunities that the respondent intends to subcontract. The respondent shall provide the notice described in this section to three or more HUBs per each subcontracting opportunity that provide the type of work required for each subcontracting opportunity identified in the contract specifications or any other subcontracting opportunity the respondent cannot complete with its own equipment, supplies, materials, and/or employees. The notification shall be in writing, and the respondent must document the HUBs contacted on the forms prescribed by the comptroller. The notice shall, in all instances, include the scope of the work, information regarding the location to review plans and specifications, information about bonding and insurance requirements, and identify contact person. The notice shall be provided to potential HUB subcontractors at least seven (7) working days prior to submission of the respondent’s response, unless circumstances require a different time period, which is determined by THC and documented in the contract file;
- Submit documentation that 100% of all available subcontracting opportunities will be performed by one or more HUBs; or
- Submit documentation that one or more HUB subcontractors will be utilized and that the total value of those subcontracts will meet or exceed the statewide goal for the appropriate contract category found in 34 TAC §20.13(b), or the established THC goal, whichever is higher. When utilizing this demonstration method, only HUB contractors holding existing contracts with the person submitting the HUB subcontracting plan for five years or fewer may be claimed.
(2) The respondent shall use the comptroller’s Centralized Master Bidders List, the HUB Directory, Internet resources, and/or other directories as identified by the comptroller or THC when searching for HUB subcontractors. Respondents may utilize the services of minority, women, and community organizations contractor groups, local, state, and federal business assistance offices, and other organizations that provide assistance in identifying qualified applicants for the HUB program who are able to provide all or select elements of the HUB subcontracting plan.
(3) In making a determination if a good faith effort has been made in the development of the required HUB subcontracting plan, THC may require the respondent to submit supporting documentation explaining how the respondent has made a good faith effort according to each criterion listed in subsection (c)(2)(A) – (D) of this section. The documentation shall include the following:
- How the respondent divided the contract work into reasonable lots or portions consistent with prudent industry practices:
- How the respondent’s notices contain adequate information about bonding, insurance, the availability of plans, the specifications, scope of work, required qualifications and other requirements of the contract allowing reasonable time for HUBs to participate effectively;
- How the respondent negotiated in good faith with qualified HUBs, not rejecting qualified HUBs who were also the best value responsive bidder;
- How the respondent provided notice to minority and women trade organizations or development centers to assist in identifying HUBs by disseminating subcontracting opportunities to their membership/participants;
- For contracts subject to paragraph (1)(D)(ii) of this subsection, which HUBs were contracted to perform the subcontracting services for each subcontracting opportunity; and
- For contracts subject to paragraph (1)(D)(iii) of this subsection, which contractor(s) were utilized to perform the subcontracting opportunities, and the relevant dates for the respondent’s contractual agreements with the contractor(s).
(4) A respondent’s participation in a Mentor-Protégé Program under Government Code, §2161.065, and the submission of a protégé as a subcontractor in the HUB subcontracting plan constitutes a good faith effort for the particular area to be subcontracted with the protégé. When submitted, THC may accept a Mentor-Protégé Agreement that has been entered into by the respondent (mentor) and a certified HUB (protégé). The THC shall consider the following in determining the respondent’s good faith effort:
- If the respondent has entered into a fully executed Mentor-Protégé Agreement that has been registered with the comptroller prior to submitting the plan, and
- If the respondent’s HUB subcontracting plan identifies the areas of subcontracting that will be performed by the protégé.
(5) If the respondent is able to fulfill all of the potential subcontracting opportunities identified with its own equipment, supplies, materials and/or employees, respondent must sign an affidavit and provide a statement explaining how the respondent intends to fulfill each subcontracting opportunity. The respondent must agree to provide the following if requested by the THC:
- Evidence of existing staffing to meet contract objectives;
- Monthly payroll records showing company staff fully engaged in the contract;
- On site reviews of the company headquarters or work site where services are to be performed; and
- Documentation proving employment of qualified personnel holding the necessary licenses and certificates required to perform the work.
e. Reviewing the HUB subcontracting plan. The HUB subcontracting plan shall be reviewed and evaluated prior to contract award and, if accepted, shall become a provision of THC’s contract. Revision necessary to clarify and enhance information submitted in the original HUB subcontracting plan may be made in an effort to determine good faith effort. THC shall review the documentation submitted by the respondent to determine if good faith effort has been made in accordance with this section. If THC determines that a submitted HUB subcontracting plan was not developed in good faith, THC shall treat that determination as a material failure to comply with advertised specifications, and the subject response (bid, proposal, offer, or other applicable expression of interest) shall be rejected. The reasons for rejection shall be recorded in the procurement file.
f. Maintaining records.
(1) Prime contractors shall maintain business records documenting compliance with the HUB subcontracting plan and shall submit a compliance report to THC monthly, in the format required by the comptroller. The compliance report submission shall be required as a condition for payment.
(2) During the term of the contract, THC shall monitor the HUB subcontracting plan monthly to determine if the value of the subcontracts to HUBs meets or exceeds the HUB subcontracting provisions specified in the contract. Accordingly, THC shall audit and require a prime contractor to report to THC the identity and the amount paid to its subcontractors in accordance with 34 TAC §20.16(b). If the prime contractor is meeting or exceeding the provisions, THC shall maintain documentation of the prime contractor’s efforts in the contract file. If the prime contractor fails to meet the HUB subcontracting provisions specified in the contract, THC shall notify the prime contractor of any deficiencies. THC shall give the prime contractor an opportunity to submit documentation and explain to THC why the failure to fulfill the HUB subcontracting plan should not be attributed to a lack of good faith effort by the prime contractor.
g. Monitoring HUB subcontracting plan during the contract.
(1) If the selected respondent decides to subcontract any part of the contract in a manner that is not consistent with its HUB subcontracting plan, the selected respondent must comply with provisions of this section and submit a revised HUB subcontracting plan before subcontracting any of the work under the contract. If the selected respondent subcontracts any of the work without prior authorization and without complying with this section, the selected respondent is deemed to have breached the contract and is subject to any remedial actions provided by Government Code, Chapter 2161, other applicable state law and this section. THC shall report nonperformance relative to its contracts to the comptroller in accordance 34 TAC §20.18.
(2) 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 THC before changes will be effective under the contract. The selected respondent must comply with provisions in this section, relating to developing and submitting a subcontracting plan for substitution of work or of a subcontractor, prior to any alternatives being approved under the HUB subcontracting plan. THC shall approve changes by amending the contract or by another form of written agency approval. The reasons for amendments or other written approval shall be recorded in the procurement file.
(3) If a state agency expands the original scope of work through a change order or contract amendment, including contract renewal that expands scope of work, THC shall determine if the additional scope of work contains additional probable subcontracting opportunities not identified in the initial solicitation. If THC determines probable subcontracting opportunities exist, THC will require the selected respondent to submit a HUB subcontracting plan/revised HUB subcontracting plan for the additional subcontracting opportunities.
(4) To determine if the prime contractor is complying with the HUB subcontracting plan, THC may consider the following:
- Whether the prime contractor gave timely notice to the subcontractor regarding time and place of the subcontracted work;
- Whether the prime contractor facilitated access to the resources needed to complete the work; and
- Whether the prime contractor complied with the approved HUB subcontracting plan.
(5) If a determination is made that the prime contractor failed to implement the HUB subcontracting plan in good faith, THC, in addition to any other remedies, may report nonperformance to the comptroller in accordance with 34 TAC §20.105 and §20.106. In addition, if the prime contractor failed to implement the HUB subcontracting plan in good faith, THC may revoke the contract for breach of contract and make a claim against the prime contractor.
(6) THC shall review its procurement procedures to ensure compliance with this section.
Last Updated 6/01/2022
The Texas Historical Commission’s Mentor Protégé Program is designed to foster long-term relationships between prime contractors and historically underutilized businesses. These relationships should result in an increase in the ability of historically underutilized businesses to contract with the state or to receive subcontracts under a state contract. Participation in the program is voluntary for both Mentors and Protégés.
Who Administers the THC Mentor Protégé Program?
The Texas Historical Commission’s HUB Coordinator and/or designee are responsible for administration of the agency program.
In depth procedures for this program are provided in the THC Mentor Protégé Program Guidelines maintained by the agency HUB Coordinator.
Any questions regarding this procedure should be directed to the Texas Historical Commission HUB Coordinator.
THC HUB Coordinator – Mentor Protégé Program Administration
The THC HUB Coordinator or their designee is responsible for maintaining application documents, program informational materials, Mentor and Protégé Application files, and Mentor Protégé Agreements.
The HUB Coordinator and their designee are responsible for program outreach, information dissemination, and program reporting and evaluation.
THC Mentor Protégé Program Policy Statement
It is the intent of the Texas Historical Commission Mentor Protégé Program to build effective working relationships between leaders of mature established companies and emerging minority and woman-owned companies in order for the latter to benefit from the knowledge and experience of the established firms.
Mission of the Texas Historical Commission Mentor Protégé Program
The THC Mentor Protégé Program has three key component missions.
- Increase the ability of historically underutilized businesses to contract with the state.
- Increase the overall participation of HUB’s in State of Texas subcontracting.
- Foster long-term relationships between prime contractors and historically underutilized businesses.
THC Mentor Protégé Program – THC Agency Resource Team Involvement
The THC Mentor Protégé Program is implemented as an agency wide effort involving a cross section of programmatic resources including but not limited to: internal purchasing, HUB State Program, vendor relations and others as identified by the agency HUB Coordinator. The agency may also collaborate with leaders of THC’s major prime and subcontractor companies, financial and bonding institutions, the Associated General Contractors, minority and woman-owned business support service organizations, as well as public local minority and women-owned chambers of commerce. The HUB Coordinator, in carrying out the mission of the THC Mentor Protégé Program will assess each Mentor Protégé Agreement and develop an agency cooperation plan to make agency resource team personnel available to assist in supporting protégé needs identified in the agreements.
Purpose of the THC Mentor Protégé Program
To identify and overcome barriers that typically inhibit or restrict the success of minority and women owned businesses certified by the State of Texas HUB program.
Realization of protégés’ company’s leader’s competency in select areas of identified need. Protégés’ increased ability to realize long-term stability in their respective industry.
Mentor Protégé Relationship
Working together in regularly scheduled meetings, mentors focus on developing protégé’s business plan and implementing the action necessary to obtain results reflected in the Mentor Protégé Agreement. This effort may include the THC Mentor Protégé Resource Team.
The THC sponsored mentors assist selected protégés in developing implementation plans, which identify needs, actions and results required for the protégé to be a successful businessperson.
Who is Eligible?
Mentors and Protégés who have completed a THC Mentor or Protégé application and who are willing to participate with THC reporting requirements as reflected in the Mentor Protégé Agreement.
Mentors who have volunteered to assist Protégés in specific areas of business development which will enhance their ability to compete successfully.
Protégés who are currently certified as a State of Texas HUB firm and are committed to participate in accordance with program rules, guidelines and processes for incremental growth and business success.
Matching Mentors to Protégés
The following criteria will be used when program staff is “matching” potential Mentors to potential Protégés.
The program staff will make every effort to assign mentors who share the same major programmatic responsibility as their protégés.
Geographic proximity of mentors and protégés will be considered in making potential matches.
The program staff will conduct Mentor Protégé orientations. These orientation sessions will be conducted by staff for the purposes of helping selected mentors and protégés understand their respective roles in the Mentor Protégé relationship. Program staff will also detail their role and the role of other agency personnel who are considered part of the program resource team. These orientation sessions will be held prior to the finalization of any Mentor Protégé Agreements sponsored by the THC. Orientation attendance is a prerequisite for Mentor Protégé Agreement sponsorship by the THC.
Mentor Application/Selection and Reporting to THC
Prospective mentor companies will submit a completed THC Mentor Application for consideration. The THC Mentor Application will be designed to collect information for staff to ascertain the following:
- Whether the mentor is a registered bidder on the CMBL.
- Whether the mentor has extensive work experience and can provide developmental guidance in areas that meet the needs of the protégé, including but not limited to business, financial, and personnel management; technical matters such as production inventory control and quality assurance; marketing; insurance; equipment and facilities; and related resources.
- Whether the mentor is in “good standing” with the State of Texas and is not in violation of any state statutes, rules, or governing policies.
- Whether the mentor has mentoring experience; and
- Whether the mentor has a successful work history with governmental entities including city, county, state, and national entities.
When a THC Mentor Application is completed and submitted to the THC HUB Coordinator, the application will be reviewed for basic eligibility criteria as listed above. The HUB Coordinator will contact the Mentor Company representative to ascertain any specific selection criteria over and beyond that outlined by THC Protégé criteria. If the criteria are met, the THC HUB Coordinator will notify the Mentor of acceptance. Once accepted the Mentor company will be forwarded copies of applications received by Protégés that meet the proposed Mentor’s criteria for selection of a Protégé. It will be the responsibility of selected Mentors to interview prospective Protégés and draft a mutually agreed to Mentor Protégé Agreement. The agreement will be submitted to the THC HUB Coordinator for finalization. Reports to the THC from the Mentor will comply with the schedule as outlined in the agreed Mentor Protégé Agreement.
Mentors will be instructed that frequency of information shared with Protégés increases the likelihood of the success of the agreement. Mentors will be instructed to initiate contact with their protégé candidates as soon as possible. Mentors will be instructed that regular structured interaction supports an effective mentoring relationship.
Protégé Application/Selection and Reporting
Prospective protégé companies will submit a completed THC Protégé Application for consideration. The THC Protégé Application will be designed to collect information for staff to ascertain the following:
- Whether the protégé is eligible and willing to become certified as a HUB or is currently certified as a HUB.
- Whether the protégé’s business has been operational for at least one year.
- Whether the protégé is willing to participate with a mentoring firm and has identified the type of guidance that is needed for its development.
- Whether the protégé is in “good standing” with the State of Texas and is not in violation of any state statutes, rules or governing policies.
- Whether the protégé is involved in a mentoring relationship with another contractor/vendor.
When a Protégé Application is completed and submitted to the THC HUB Coordinator, the application will be reviewed for basic eligibility criteria as listed above. The HUB Coordinator will contact the Protégé Company representative to ascertain any specific needs to be addressed. Once accepted as a potential protégé company, the THC HUB Coordinator will forward copies of applications that match the proposed Mentor’s criteria for selection of a Protégé. It will be the responsibility of selected Mentors to interview prospective Protégés and draft a mutually agreed to Mentor Protégé Agreement to submit to the THC HUB Coordinator for reporting purposes.
The Mentor Protégé Agreement
The agreement is drawn between the THC Mentor and Protégé and details the nature of the relationship for the purpose of THC sponsorship. Clearly defined mentor expectations comprise an ideal and effective mentoring relationship.
The mentor and protégé shall agree on the nature of their involvement under the agency’s mentor protégé initiative. The Mentor and Protégé relationship should be reduced to writing and that agreement may include, but is not limited to the following:
- Identification of the developmental areas in which the protégé needs guidance.
- The time period which the developmental guidance will be provided by the mentor.
- Name, address, phone and fax numbers, and the points of contact who will oversee the agreement.
- Procedure for a mentor firm to notify the Protégé in advance if it intends to voluntarily withdraw from the program or terminate the mentor protégé relationship.
- Procedure for a protégé firm to notify the mentor in advance if it intends to terminate the mentor protégé relationship.
- A mutually agreed upon timeline to report the progress of the mentor protégé relationship to the THC. This reporting period should coincide with the agency timeline for annual HUB reporting purposes.
- The Agreement must state that the participation by the Mentor and Protégé is voluntary. The Agreement must include written documentation that participation in the agency’s Mentor Protégé Program is neither a guarantee for a contract opportunity nor a promise of business, but the program’s intent is to foster positive long-term relationships.
THC Mentor Protégé Agreement sponsorship is limited to a period not to exceed forty-eight (48) months commencing from the date the Mentor Protégé Agreement is signed by all parties.
Three original copies of the agreement will be drawn. One shall be retained by the Mentor, one to be retained by the Protégé, and one to be retained by the THC HUB Coordinator.
THC HUB Coordinator – Mentor Protégé Reporting
On an annual basis, the THC HUB Coordinator will compile reports which reflect information via submitted surveys by Mentors and Protégés that document any progress made as result of the agreements. This report shall include a summary of key progress made by protégés relative to their respective agreements. Annual program evaluation information will be collected and prepared for submission with the THC supplemental letter as a component of its annual HUB reporting materials. Case study format reporting will also be considered for the annual HUB report. The program efforts and results will also be reported in the THC HUB Strategic Plan.