The Texas subcontracting plan for state bids of $100,000 and up

On Texas state contracts with an expected value of $100,000 or more, the agency decides whether it expects subcontracting opportunities with certified VetHUBs. If it does, the solicitation says so and includes a subcontracting plan form. People still call it the HUB subcontracting plan, or HSP. The current form is titled "State of Texas Subcontracting Plan."

Missing it can sink your bid

When a solicitation requires a plan, a response without a complete plan is not considered responsive. It can be rejected before anyone reads your price.

Every bidder files one

When the plan is required, every bidder submits a complete one:

• If you will use subcontractors, list each one and show your good faith effort to recruit certified VetHUBs.
• If you will do all the work yourself, you still submit the plan and state that you will perform the contract with your own resources.

After award, the plan becomes part of the contract. You need the agency's approval to change it, including adding, dropping or replacing a subcontractor.

The good faith effort

For each part of the work you plan to subcontract, the form asks you to show outreach to certified VetHUBs:

1. Search the VetHUB directory by business category or NIGP code for firms that work in the right area.
2. Notify at least two VetHUBs for each subcontracting opportunity. Use the state's notification template, or an email that includes the scope of work, where to review plans and specifications, bonding and insurance needs, required qualifications, the agency and its contact, the solicitation number, your contact details, and the date you need a reply.
3. Give them at least seven business days to respond, not counting weekends and state holidays.
4. Save the emails and the replies, and attach them to your plan.

You are not required to hire a VetHUB that responds. You are required to make a real, documented effort. The agency does not use your subcontractors' VetHUB status to choose the winner.

If you are a mentor in the state's mentor protege program, and your protege is a certified VetHUB, subcontracting that part of the work to your protege counts as your good faith effort for it.

Start early

Seven business days for replies, plus time to choose partners and confirm prices, means your outreach should start about two weeks before the response is due. Put it on your plan the day you decide to bid.

Who counts as a subcontractor

A subcontractor is any business or person you pay to perform part of the contract. If 1099 contractors will do part of the work, list them as subcontractors unless the agency tells you otherwise. When in doubt, ask the agency's HUB coordinator before you submit.

After award

• Tell each subcontractor that it was selected, with the agency, the contract number, the work and the value.
• Send a progress assessment report with each invoice, showing what you paid each subcontractor.
• Get the agency's approval before you change the plan.

Where to get the form

The current form and its supplementary forms are on the Comptroller's VetHUB forms page. Use the version included in the solicitation, because forms are revised from time to time.