04.01.08 – Historically Underutilized Businesses (HUBs)

I. PURPOSE AND SCOPE

The purpose of this MAPP is to establish guidelines for the use of historically underutilized businesses where applicable in procurement activities at the university, in accordance with Texas Government Code, Chapter 2161 , Board of Regents Policy 55.04 , and System Administrative Memorandum (SAM) 03.B.02 - Contracting with Historically Underutilized Businesses (HUBs) . This MAPP applies to all purchases and procurement of goods and services for and at the University of Houston. The University of Houston HUB Guidelines contain detailed procedures that all university departments must follow in order to comply with state HUB program requirements. These Guidelines are considered an extension of this MAPP. The HUB Guidelines are located at: http://www.uh.edu/administration-finance/hub/.

II. POLICY STATEMENT

The University of Houston supports and encourages historically underutilized businesses. The university adopts this document to comply fully with the letter and the spirit of Texas Government Code, Chapter 2161 . The University of Houston pledges to:

A. Reaffirm the university's commitment to the principles of equal opportunity for all businesses and affirmatively increase the participation of historically underutilized businesses in the university's procurement process;

B. Encourage participation in procurement from historically underutilized businesses;

C. Foster further expansion and development of historically underutilized businesses;

D. Actively assist historically underutilized businesses in Texas, particularly in the areas served by this university, in becoming familiar with the procurement process of the State of Texas and the University of Houston;

E. Support growth and new business opportunities in the areas served by the university, thereby promoting the economic development of the state;

F. Expand the number of suppliers and contractors seeking to provide goods and services to the university, thereby encouraging competition, with the ultimate goal of improving quality and economy of goods and services purchased by the university;

G. Support and encourage the improvement of business conditions encountered by historically underutilized businesses; and

H. Heighten awareness throughout the university and the communities served by the university of the capabilities and needs of historically underutilized businesses that can provide goods and services for the university.

III. DEFINITIONS

A. Historically Underutilized Business (HUB): For the purposes of this MAPP, a historically underutilized business is a

1. for-profit corporation, for-profit sole proprietorship, for-profit partnership, HUB joint venture, or supplier contract between a HUB and a prime contractor, with its principal place of business in Texas,

2. in which at least 51 percent is owned, controlled, operated, and actively managed by one or more Economically Disadvantaged Persons, and

3. that is certified by the Texas Comptroller's Office as a business enterprise meeting the above criteria. (See Texas Government Code Section 2161.001(2) and Texas Administrative Code, Title 34, Part 1, Chapter 20, Subchapter D, Division 1, Rule 20.282 for the legal definition of a HUB.)

B. Economically Disadvantaged Person: For the purpose of this document, an economically disadvantaged person is a person who is economically disadvantaged because of the person's identification as a member of a certain group, including Black Americans, Hispanic Americans, women, Asian Pacific Americans, Native Americans, and Service Disabled Veterans and has suffered the effects of discriminatory practices or other similar insidious circumstances over which the person has no control. (See Texas Government Code Section 2161.001(3))

IV. GOALS

The University of Houston recognizes the State's goals of placing qualified percentages of total contracts with HUBs.

The university will make a good faith effort to give HUB vendors an opportunity to compete for all contracts and purchases.

A. The university determined HUB utilization goals for the following procurements categories, which are listed on the UH HUB web site (http://www.uh.edu/administration- finance/hub/):

• Building Construction, including general contractors and operative builders contracts

• Special Trade Construction contracts

• Professional Services contracts

• Other Services contracts

• Commodities contracts

B. The university will seek to identify and advise HUB eligible vendors of the State's certification process.

C. The university will establish educational training for personnel making procurement decisions to assure compliance with stated objectives.

D. The university will establish a Mentor-Protégé Program to foster relationships between prime contractors and HUBs. The objective is to provide professional guidance and support to the protégé (HUB) in order to facilitate their growth and development to promote increased HUB participation in university procurements.