Handbook of Operating Procedures > Series 400 Budget, Finance and Operations > 4.2.8 Utilization of Historically Underutilized Business (HUB) Firms

4.2.8 Utilization of Historically Underutilized Business (HUB) Firms

A. Purpose

The purpose of this policy is to promote full and equal opportunity for all businesses to supply the goods and services needed to support mission, administrative, and logistical operations of The University of Texas at Tyler, including  The University of Texas Health Science Center at Tyler (University). 

B. Persons Affected

All employees

C. Definitions

1. “Commodities" - materials, supplies, or equipment.
2. "Construction" - construction, improvement, maintenance, or repair of buildings, roads, highways, or grounds.
3. Historically Underutilized Business - a business outlined in subsection C.3.c-h with its principal place of business in Texas (as defined in this subsection 5) in which the owner(s):
   1. have a proportionate interest and demonstrate active participation in the control, operation, and management of the entities’ affairs; and
   2. are economically disadvantaged because of their identification as members of the following groups:
      1. Black Americans - which includes persons having origins in any of the Black racial groups of Africa;
      2. Hispanic Americans - which includes persons of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish or Portuguese culture or origin, regardless of race;
      3. American Women - which includes all women of any ethnicity except those specified in C.3.b.i, ii, iv and v);
      4. Asian Pacific Americans - which includes persons whose origins are from Japan, China, Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Samoa, Guam, the U.S. Trust territories of the Pacific, the Northern Marianas, and Subcontinent Asian Americans which includes person whose origins are from India, Pakistan, Bangladesh, Sri Lanka, Bhutan, or Nepal; and

      5. Native Americans - which includes persons who are American Indians, Eskimos, Aleuts, or Native Hawaiians; and

      6. Veterans as defined by 38 U.S.C. Section 101(2) who have suffered at least a 20% service-connected disability as defined by 38 U.S.C. Section 101(16) who are not Black Americans, Hispanic Americans, American Women, Asian Pacific Americans, or Native Americans.

   3. a corporation formed for the purpose of making a profit in which at least 51% of all classes of the shares of stock or other equitable securities are owned by one or more persons described by C.3.a and C.3 b; or
   4. a sole proprietorship created for the purpose of making a profit that is 100% owned, operated, and controlled by a person described by C.3.a and C.3.b; or
   5. a partnership formed for the purpose of making a profit in which 51% of the assets and interest of the assets and interest in the partnership is owned by one of more persons who are described by C.3.a and C.3.b; or
   6. a joint venture in which each entity in the joint venture is a HUB; or
   7. a supplier contract between a HUB and a prime contractor/vendor under which the historically underutilized business is directly involved in the manufacture or distribution of the supplies or materials or otherwise warehouses and ships the supplies; or
   8. A business other than described in C.3.d, f, and g, which is formed for the purpose of making a profit and is otherwise a legally recognized business organization under the laws of the State of Texas, provided that at least 51% of the assets and 51% of any classes of stock and equitable securities are owned by one of more persons described by C.3.a and C.3.b.
4.  Other Services – all services, other than construction and professional services, including consulting services procured subject to Texas Government Code, Chapter 2254, Subchapter B.
5. Principal Place of Business – a permanent business office located in Texas where the majority HUB owner(s) makes the decisions, controls the daily operations of the organization, and participates in the business. The qualifying owners must be residents of the State of Texas.
6. Professional Services – services of accountants, architects, engineers, land surveyors, and physicians that must be purchased under Texas Government Code Chapter 2254, Subchapter A.

D. Policy

The University is committed to a good faith effort to increase purchases from and contract awards to HUB firms consistent with the state's goals for HUB participation and overall economic development. This policy applies to acquisition of specified heavy construction, building construction, special trade construction, professional services, other services, and commodities by the University regardless of funding source.

E. Responsibilities

The President is responsible for implementation of policies/procedures promulgated by The University of Texas System Board of Regents and System Administration. The President or designee will develop strategic and action plans necessary for effective implementation of the HUB program.

F. Review

This policy shall be reviewed every five years or as legislation changes.

References:

Texas Government Code, Chapter 2161

Texas Administrative Code, Title 34, Part 1, Chapter 20, Subchapter B

The University of Texas System Regent’s Rules and Regulations, Rule 20701

The University of Texas System Policy UTS 137