A Historically Underutilized Business (HUB) is a corporation, sole proprietorship, partnership or a joint venture formed for the purpose of making a profit. An owner must provide proof of 51 percent ownership and control of the day to day operation of the business. The owner must be an economically disadvantaged person meeting eligibility as a(n):
- Asian Pacific American,
- Black American,
- Hispanic American,
- Native American,
- American woman, and/or
- Service-Disabled Veteran with a service-related disability of 20% or greater.
The owner must:
- be a U.S. Citizen,
- prove at least one year of Texas residency,
- prove control of the day to day operations, and
- hold company title equivalent to ownership and control requirements.
The applicant business must:
- be primarily based in Texas,
- prove its principal place of business is in Texas, and
- be a for-profit entity that has not exceeded the size standard prescribed by 34 TAC §20.294.
The purpose of the ASU HUB Program is to promote full and equal contracting opportunities for all businesses in the State of Texas, in accordance with TX Government Code 2161, TX Administrative Code, and the State of Texas Disparity Study. Based on the Disparity Study and future fiscal year purchases of goods and services, ASU has developed HUB utilization goals in the following procurement categories:
- Heavy Construction: 0.00%
- Building Construction: 10.37%
- Special Trade Construction: 8.00%
- Professional Services: 10.00%
- Other Services: 19.55%
- Commodities: 21.00%
In accordance with the Texas Government Code, Sections 2161.003, 2161.062(e), 2161.066 and 2161.181 and 34 Texas Administrative Codes 20.296 and 20.297, and the 2009 Texas Disparity Study, ASU, through support from its HUB Coordinator, shall make a good faith effort to utilize Historically Underutilized Business (HUB) vendors in contracts for construction; services, including professional and consulting services; and commodities contracts and shall design its own HUB program and invite HUB vendors to make marketing presentations.
In accordance with Texas Administrative Code Section 2161.065, Angelo State University (ASU) supports the Comptroller of Public Accounts HUB Mentor Protégé Program by fostering long‐term relationships between prime contractors (mentors) and Historically Underutilized Businesses (HUBs) (protégés) to aid HUBs in their development and increase their ability to do business with State of Texas agencies (state agencies).
The ASU Mentor Protégé Program is voluntary for both the Mentor and the Protégé, and while it does not guarantee that a contract will be awarded, the program does provide an opportunity for HUBs to work with prime contractors.
The scope of the ASU Mentor Protégé Program is to identify and overcome barriers that may restrict the success of HUBs through mentoring on agreed upon Protégé goals outlined in an agreement, such as learning industry standards, accounts receivable management, or product and service analysis.
The objectives of the ASU Mentor Protégé Program are:
- Foster long-term relationships between prime contractors and HUBs;
- Assist in creating development plans for Protégés in areas of identified need;
- Increase protégé company’s long-term stability in their industry;
- Increase the ability and capacity of HUBs to contract with state agencies;
- Increase the participation of HUBs in subcontracting;
- Increase ASU’s ability to receive qualified and responsive bids from HUBs for goods and services requested;
The ASU HUB & Logo Licensing Coordinator is responsible for sponsoring the program, participating in community outreach, and educating HUB vendors and small business owners about the Mentor Protégé Program. This includes assisting vendors with the Mentor Protégé Application process and drafting the Mentor Protégé Agreement.
The ASU HUB & Logo Licensing Coordinator will conduct orientation sessions and schedule reviews to help Mentors and Protégés understand their respective roles and to assess the progress of Mentor Protégé agreements.
Mutual Benefits for Vendors
The mentor-protégé relationship is mutually beneficial since mentors can use their protégés to fulfill HUB subcontracting requirements when bidding on state contracts with expected values of $100,000 or more and protégés can learn industry best practices from their mentors.
While the program does not have a financial incentive for participation, the partnership between mentor and protégé may even extend their capability to compete for other state agency procurement needs in addition to Angelo State.
Program Eligibility Requirements
The following criteria may be considered for Mentor participation by state agencies:
- Registration with the State of Texas Central Master Bidders List (CMBL), although not required.
- Previous mentoring experience and prior work history.
- Ability to provide developmental guidance in areas identified by the protégé
- Be in “good standing” with the State of Texas;
The following criteria may be considered for Protégé participation by state agencies:
- Eligibility and willingness to obtain HUB certification under the State of Texas HUB Program (Protégé must be certified as a HUB prior to SPD listing the Mentor Protégé Agreement on the official list),
- Business in operation for at least one year,
- Desire to participate with a mentoring firm,
- Ability to identify the type of guidance needed for business development, and
- “Good Standing” in doing business with the State of Texas.
The Mentor Protégé Agreement
The Mentor Protégé Agreement is a document signed by the Mentor and Protégé that details the nature of the relationship for the purpose of sponsorship by ASU. Clearly defined mentoring expectations lead to an effective relationship.
The Mentor and the Protégé should agree on the nature of their involvement under the agency’s Mentor/ Protégé initiative. The Mentor and Protégé agreement may include, but is not limited to, the following:
- Name, address, phone and fax numbers, and the points of contact that will oversee the agreement of the Mentor and Protégé;
- The time period of the agreement during which the developmental guidance by the Mentor to the Protégé will occur.
- Identification of the development areas in which the Protégé needs guidance;
- A mutually agreed upon timeline to report the progress of the Mentor Protégé relationship to the state agency. This reporting period should coincide with ASU’s timeline for annual HUB reporting purposes.
- Procedures for Mentor and Protégé to notify the other in advance if it intends to voluntarily withdraw from the program or terminate the Mentor Protégé relationship;
- The agreement must state that the participation by the Mentor/Protégé is voluntary.
- The agreement must include written documentation that participation in the Mentor Protégé Program is neither a guarantee for a contract opportunity nor a promise of business; but the Program’s intent is to foster positive long-term business relationships.
Reporting Mentor Protégé Activities
On an annual basis, the ASU HUB & Logo Licensing Coordinator or their designee will provide questionnaires/surveys to Mentors and Protégés to document any progress made by the Protégé as a result of the agreement. Annual program evaluation information may be included in the agency’s Supplemental Letter, and may be submitted as part of the Annual HUB Report. The program efforts and results will also be reported in the agency’s HUB Plan.
The Purchasing Department is providing both a HUB Vendor list and a Vendor List for your convenience. The listing for HUB Vendors is only a portion of the HUB Vendors in the State of Texas. The Vendor listing is compiled of those vendors who have filled out a vendor application with ASU and have requested to be placed on our Vendor List, however these are not HUB vendors. To inquire as to whether a vendor has HUB vendor status that is not in our listing, please go to our links on the left under HUB Directory or CMBL List and HUB Search.