Contracts Management Guide - Texas Comptroller of Public Accounts

Historically Underutilized Business (HUB) Requirements
Agencies are required to make a good faith effort to utilize HUBs in state contracts in accordance with the goals
specified in the 1996 State of Texas disparity study. These goals can be achieved through contracting directly with
HUBs or indirectly through subcontracting opportunities in accordance with Texas Government Code, Chapter 2161,
Subchapter F and section 111.14 of the Texas Administrative Code.
For all contracts over $100,000, HUB subcontracting forms must be completed and returned with the bid or proposal
or the proposal will be considered non-responsive. A sample form is included on Exhibit 1, Appendix A of this guide.
Specific HUB procedures are detailed in the Texas Comptroller of Public Account’s (CPA) Procurement Manual at
http://www.window.state.tx.us/procurement/pub/manual/.
Payment Types
The method of payment has a direct impact on how the statement of work is written and how the contract is
managed. Agencies must measure or verify that the work is complete and how much and how often the agency will
pay the contractor. As with specification types, there are also many payment types. The payments should be
consistent with the type of product or service delivered. Payments should be structured to fairly compensate the
contractor and encourage timely and complete performance of work. As a general rule, payment should be
approximately equal to the value of the completed work.
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