(a) In accordance with §20.281 of this title (relating to Policy and Purpose) and Government Code, §2161.181 and §2161.182, each state agency shall make a good faith effort to utilize HUBs in contracts for construction, services (including professional and consulting services) and commodities purchases. Each state agency may achieve the statewide and the annual HUB utilization goals specified in the state agency's Legislative Appropriations Request by contracting directly with HUBs or indirectly through subcontracting opportunities.
(b) The statewide HUB utilization goals are:
(1) 11.2% for heavy construction other than building contracts;
(2) 21.1% for all building construction, including general contractors and operative builders contracts;
(3) 32.9% for all special trade construction contracts;
(4) 23.7% for professional services contracts;
(5) 26.0% for all other services contracts; and
(6) 21.1% for commodities contracts.
(c) State agencies shall establish HUB utilization goals for each procurement category identified in subsection (b) of this section. Agencies may set their HUB utilization goals higher or lower than the statewide utilization goals. However, the statewide HUB utilization goals shall be the starting point for establishing state agency-specific goals. State agency-specific HUB utilization goals shall be based on:
(1) a state agency's fiscal year expenditures and total contract expenditures;
(2) the availability to a state agency of HUBs in each procurement category;
(3) the state agency's historic utilization of HUBs; and
(4) other relevant factors.
(d) Each state agency shall make a good faith effort to assist HUBs in receiving a portion of the total value of all contracts that the state agency expects to award in a fiscal year. Factors in determining a state agency's good faith shall include:
(1) the state agency's performance in meeting or exceeding their HUB utilization goals or the statewide HUB utilization goals as they included as part of their legislative appropriations request in accordance with Government Code, §2161.127; and
(2) the state agency's adoption and implementation of the following procedures:
(e) A state agency may also demonstrate good faith under this section by submitting a supplemental letter with documentation to the comptroller with their HUB report or legislative appropriations request including other relevant information, such as:
(1) identifying the percentage of contracts (prime and subcontracts) awarded to businesses that are not HUBs, but that are owned by economically disadvantaged persons as defined in Government Code, §2161.001;
(2) demonstrating that a different goal from that identified in subsection (b) of this section was appropriate given the state agency's types of purchases;
(3) demonstrating that a different goal was appropriate given the particular qualifications required by a state agency for its contracts;
(4) demonstrating that a different goal was appropriate given that graduated HUBs cannot be counted toward the goal; or
(5) demonstrating assistance to business entities in obtaining HUB certification.
Source Note: The provisions of this §20.284 adopted to be effective January 24, 2017, 42 TexReg 235; amended to be effective August 9, 2023, 48 TexReg 4268