HUB

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About > Contracting > Historically Underutilized Business (HUB)

Historically Underutilized Businesses

The Statewide Procurement Division (SPD) Historically Underutilized Business (HUB) program is a State of Texas initiative to increase the opportunities available to businesses owned by minorities and women in state procurement and contracting.

The TDA HUB Program Office ensures the agency’s good faith effort to include HUB businesses in its procurement efforts. This good faith effort involves evaluating and determining HUB Subcontracting opportunities, administration of the HUB mentor/protégé program, participating in marketing and outreach efforts for HUB participation, and HUB reporting to SPD.

HUB Qualifications

A HUB is a for-profit business legally recognized by the State of Texas and that is at least 51 percent owned by one or more of the following groups:

Black Americans
Hispanic Americans
Women
Asian Pacific Americans
Native Americans
Service-Disabled Veterans (at least 20% service disabled)

In addition, the business needs to meet the following:

Texas resident for at least one year
Texas must be the business primary place of business
HUB-eligible individual(s) must be in financial, managerial, and daily control of the business
Business must meet the U.S. Small Business Administration, small business size standards.

HUB Goals

TDA has adopted the SPD Statewide HUB Goals. TDA is committed to promoting full and equal business opportunities for all businesses in state contracting in accordance with the goals specified in the State of Texas Disparity Study:

11.2% Heavy Construction
21.1% Building Construction, including general contractor
32.9% Special Trade Construction
23.7% Professional Services contracts
26.0% Other Services contracts
21.1% Commodities contracts

HUB Advantages

SPD HUB certification is free of charge and good for up to four years, provided that the business continues to meet the eligibility requirements.
Only certified HUBs are listed in the online Texas HUB Directory.
State agencies use the HUB Directory in conjunction with the Comptroller's Centralized Master Bidders List (CMBL) to solicit bids from certified HUBs for state purchasing and contracts.
For Purchases of $10,000 or less, state entities can directly contact a business to buy goods and services.
For Purchases over $100,000 with a HUB Subcontracting Plan (if applicable) require respondents/vendors to send notifications of their subcontracting opportunities.
Increased exposure to the public as well as other entities that have a supplier diversity program, and are searching for minority-owned, woman-owned, and service-disabled veteran-owned businesses.
Per TAC Rule §20.284, 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.

Statues