Subcontracting

In accordance with the Texas Government Code (TGC), Section 2161.252 and Texas Administrative Code (TAC) Title 34, Part 1, Chapter 20, Subchapter D, Division 1, each state agency that considers entering into a contract with an expected value of $100,000 or more, shall before the agency solicits bids, proposals, offers, or other applicable expressions of interest, determine whether subcontracting opportunities are probable under the contract.

If subcontracting opportunities are probable, each state agency’s invitation for bids or other purchase solicitation documents for construction, professional services, other services, and commodities with an expected value of $100,000 or more shall state that probability and require a HUB Subcontracting Plan (HSP).

To expand opportunities for HUBs, if subcontracting opportunities exist, prime contractors are required to extend the good faith effort in selection and award of subcontractors. For forms, instructions and more details, visit HUB Subcontracting Plan.

HUB Rules and Regulations Summary

• For bids over $100,000.00 ALL forms must be submitted (unless vendor will do all the work themselves), they must submit F, B, & G. Bids under $100,000.00 are not required to submit all forms.
• If vendor is going to sub-contract and the bid is over $100,000.00, the vendor must then submit all forms A, B, C, D, & E.
• If company is going to sub-contract, we suggest that a HUB vendor be utilized.
• If vendor does all their own work, use Section 2 of the checklist.
• If vendor is going to sub-contract, use Section 1 of check list providing that the bid is under $100,000.00.
• If respondent proposes subcontractors, use HSP attachments: A, B, C, D, & E.
• If respondent proposes self-performance, use HSP attachments: B, F, & G.

HUB Subcontracting Plan Options

Option 1 – (Method A) Section 2(c) of HSP: Respondent will subcontract with only HUB vendors. (No continuous contract exists with HUB exceeding 5-years in place.)

If you are not subcontracting any portion of the contract and will be fulfilling the entire contract with your own resources, complete the following sections:

1. Section 1 – Respondent and Requisition Information
2. Section 2A – No, I will not be subcontracting any portion of the contract, and I will be fulfilling the entire contract with my own resources
3. Section 3 – Self Performing Justification
4. Section 4 – Affirmation

Option 2 – (Method A) Section 2(d) of HSP: Respondent will subcontract with HUB and non-HUB vendors but the percentage subcontracted to the HUB meets or exceeds the HUB Goal the contracting agency identified in the “Agency Special Instructions/Additional Requirements.” (No continuous contract exists with HUB exceeding 5-years in place.)

If all of your subcontracting opportunities will be performed using only HUB vendors, complete the following sections:

1. Section 1 – Respondent and Requisition Information
2. Section 2A – Yes, I will be subcontracting portions of the contract
3. Section 2B – List all the portions of work you will subcontract, and indicate the percentage of the contract you expect to award to HUB vendors
4. Section 2C – Yes
5. Section 4 – Affirmation
6. Good Faith Effort (Attachment A) – Complete this attachment for each subcontracting opportunity.

Option 3 – (Method B) Section B 1-4 of HSP: Respondent will subcontract with HUB and non-HUB vendors (or only non-HUB vendors), and the aggregate percentage of subcontracting with HUB vendors does not meet or exceed the HUB Goal the contracting agency identified in the “Agency Special Instructions/Additional Requirements.”

If you are subcontracting with HUB vendors and Non-HUB vendors, and the total percentage of subcontracting with HUB vendors meets or exceeds the HUB Goal the contracting agency identified in “Agency Special Instructions/Additional Requirements,” complete the following:

1. Section 1 – Respondent and Requisition Information
2. Section 2A – Yes, I will be subcontracting portions of the contract
3. Section 2B – List all the portions of work you will subcontract, and indicate the percentage of the contract you expect to award to HUB vendors and Non HUB vendors
4. Section 2(C) – No
5. Section 2(D) – Yes
6. Section 4 – Affirmation
7. Good Faith Effort (Attachment A) – Complete this attachment for each subcontracting opportunity

Option 4 – Self-Performance – Section 3 of HSP

If you are subcontracting with HUB vendors and Non-HUB vendors (or only Non HUB vendors), and the total percentage of subcontracting with HUB vendors does not meet or exceed the HUB Goal the contracting agency identified in “Agency Special Instructions/Additional Requirements,” complete the following:

1. Section 1 – Respondent and Requisition Information
2. Section 2A – Yes, I will be subcontracting portions of the contract
3. Section 2B – List all the portions of work you will subcontract, and indicated the percentage of the contract you expect to award to HUB vendors and Non HUB vendors
4. Section 2C – No
5. Section 2D – No
6. Section 4 – Affirmation
7. Good Faith Effort (Attachment B) – Complete this attachment for each subcontracting opportunity