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Texas HUBs getting larger percentage of state contracts

Texas is doing more business with companies certified as Historically Underutilized Businesses (HUBs), according to a new report published by the state.

The Fiscal 2017 Semi-Annual Report for Texas's HUB Program, which summarizes and analyzes expenditures made to certified HUBs by state agencies and institutions of higher education between September 1st, 2016 and February 28th, 2017, found that $1,127,465,183 in state's contract awards went to HUBs during the study period.

Of Texas's approximately 14,650 certified HUBs, about 3,500 of these firms (or roughly 24.3% of the total HUBs) did some time of business with the state - totaling 11.83 percent of all statewide expenditures during the first half of 2017. This represents a rise from 2016's figures, in which 11.52 percent of state spending went to HUBs.

The state's overall spending through term contract purchases during the first half of fiscal 2017 totaled about $72 million less than in the same period of the previous year. However, the state's spending through group purchases for the first half of fiscal 2017 which went to HUBs increased by 18 percent, and group purchase spending on HUBs accounted for almost 9.7 percent of the $145 million that went to total group purchase spending. The categories of building construction and heavy construction accounted for the greatest amount of subcontracting spending going to HUBs in 2017.

HUBs in Texas generally consist of businesses owned by minority members, women, and service-disabled veterans. These HUBs are aided in contracting with the state with regulation requiring state entities to search the Centralized Master Bidders List (CMBL) when planning to buy goods and services that cost more than $5,000.

At the end of the first half of fiscal 2017, about 36.6 percent of the state's certified HUBs were registered with the CMBL. Businesses owned by Black Americans experienced the greatest rise in the share of state spending received, at 18.52 percent growth between the first half of fiscal 2016 and the first half of fiscal 2017. Businesses owned by Native Americans and Anglo women experienced decreases in their share of state spending of 9.45 percent and 3.66 percent, respectively.

Read the complete report at https://comptroller.texas.gov/purchasing/vendor/hub/reporting.php