HBP Part 24.2. Historically Underutilized Business (HUB) Program - General Information

Date published: November 20, 2012
Last revised: November 20, 2012
Issued by: HUB/SB


A. Introduction

The Historically Underutilized Business (HUB) program is a state of Texas initiative to increase the opportunities available to businesses owned by minorities and women in the area of state procurement and contracting. Accordingly, The University of Texas at Austin is fully committed to the good-faith effort to:

  • enhance the opportunity of HUBs to compete for contracts and purchases
  • increase the number of contracts awarded to HUB firms
  • create a fair and open competitive market
  • improve community awareness regarding HUBs

A Historically Underutilized Business (HUB) is defined as a sole proprietorship, partnership, or corporation in which at least 51 percent of the stock or other equitable securities are owned by one or more persons who are members of the following groups: Asian Pacific Americans, Black Americans, Hispanic Americans, Native Americans, or women. These individuals must have a proportionate interest in the control, operation, and management of the business, and their principal place of business must be located in Texas.

The university has designated a staff member to serve as the Historically Underutilized Business (HUB) coordinator for the agency. The HUB coordinator assists the university with the development of the agency's procurement specifications, HUB subcontracting plans, and evaluation of contracts for compliance. The HUB coordinator also assists state agencies and the state comptroller with HUB compliance, facilitating compliance with the agency's good-faith effort criteria, HUB reporting, contract administration, and marketing and outreach efforts for HUB participation.

Statewide HUB utilization goals are developed by the Texas State Comptroller’s Office – HUB Reporting. Current HUB goals are:

Category   Goals
Heavy Construction   11.2%
Building Construction   21.1%
Special Trade   32.7%
Professional Services   23.6%
Other Services   24.6%
Commodities   21%

B. State of Texas Regulations Governing the Historically Underutilized Business Program (HUB)

In accordance with the Texas Government Code, Title 10, Subtitle D, Chapter 2161. Historically Underutilized Businesses, Subchapter A, state agencies, including institutions of higher education, must make a good-faith effort to use HUBs in state contracts, including contracts for construction, services, and commodities.

In accordance with the Texas Administrative Code, Title 34, Chapter 20, Subchapter D, Division 1, Sections §20.281 to §20.298, each state agency must make a good-faith effort to use HUBs in purchase contracts for construction, services (including professional and consulting services), and commodities.

C. Resources



Part 24. HUB/SB Office—Small and Disadvantaged Business Organizations - Table of Contents