Transcript Document

Texas Higher Education Coordinating Board
2004 Facilities Conference
Strategies to Increase HUB Participation
February 5, 2004
SID SANDERS, ASSISTANT VICE CHANCELLOR FOR
FACILITIES PLANNING AND CONSTRUCTION
THE UNIVERSITY OF TEXAS SYSTEM
1
U. T. System OFPC
HUB Program
Recent Historical Performance
TOTAL $
HUB $
HUB%
• FY 97/98
$175,063,000
$19,257,000
11.00%
• FY 98/99
$165,806,000
$18,653,000
11.25%
• FY 99/00
$282,062,000
$28,375,000
10.06%
• FY 00/01
$242,376,000
$23,970,000
9.89%
Trends: HUB expenditures are trending up
HUB percentages are trending down
2
U. T. System OFPC
HUB Program
Typical Construction Contract Arrangement
OFPC
General
Contractor
First Tier
Subcontractor
Second Tier
Subcontractor
First Tier
Subcontractor
Second Tier
Subcontractor
Second Tier
Subcontractor
First Tier
Subcontractor
Second Tier
Subcontractor
First Tier
Subcontractor
Second Tier
Subcontractor
First Tier
Subcontractor
Second Tier
Subcontractor
Second Tier
Subcontractor
SB178 stipulates measurement at the General Contractor and First Tier
Subcontractor levels
3
$200,000,000
1
2
3
$400,000,000
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
$600,000,000
21
22
23
24
25
26
27
$800,000,000
28
29
30
31
$1,000,000,000
32
$1,200,000,000
33
$1,400,000,000
34
$1,600,000,000
35
$1,289,792,350
$1,039,657,939
$796,720,599
$621,468,769
$551,264,290
$491,054,290
$442,082,082
$396,024,758
$350,761,551
$308,077,220
$270,992,738
$246,206,498
$224,546,262
$204,772,608
$185,756,413
$167,406,413
$150,982,695
$135,442,543
$120,183,341
$105,683,400
$91,306,769
$77,997,740
$68,066,335
$60,155,335
$52,696,335
$45,430,402
$38,820,241
$33,071,841
$27,397,955
$21,797,955
$17,412,159
$13,452,376
$10,031,302
$7,222,302
$2,000,000,000
$4,522,302
$2,156,150
Value of Construction Contract
U. T. System OFPC
HUB Program
Current Construction Program
$2,200,000,000
Current Value of OFPC CIP Projects Currently in Construction
Total of Construction Contracts = $1,826,938,904
$1,800,000,000
$-
Number of Projects in Construction
36
4
U. T. System OFPC
HUB Program
Current Construction Program (continued)
• 36 projects under construction — total contract value
= $1,289,792,350
• 8 of 36 projects comprise 73% of total contract value
• 3 of 36 projects comprise 52% of total contract value
• Average first tier subcontract of the top 3 contracts
is estimated at $3,000,000
5
U. T. System OFPC
HUB Program
Issues
• Most construction dollars spent will be in large
construction contracts
• Consequently, most first tier subcontracts will be
very large
• Most HUB firms will not be able to bid at first tier
level due to size
• Concern that we will have a lower percentage of
HUB participation even if absolute dollars on HUBs
increase
6
U. T. System OFPC
HUB Program
Strategic Plan
It is critical that we measure at the second tier level on
our large construction projects
• Pilot project with bonding and technical assistance
(BTA) agent designed to penetrate the second tier
• Pilot project to require subcontracting plans and good
faith compliance for large first tier subcontractors
• OFPC will increasingly be requiring subcontracting
plans of large first tier subcontracts.
7
U. T. System OFPC
HUB Program
Strategic Plan (continued)
• HUB Program staff has been expanded from 1
person to 5. Staff assigned specific construction
markets.
• An extensive program is underway to identify capable
minority special trade firms in all markets.
• HUB Program staff will be working with prime
contractors and large first tier subcontractors to
identify opportunities for HUB special trade firms.
8
U. T. System OFPC
HUB Program
Resources currently available to contractors and
consultants (goal was to integrate all available
resources):
• OFPC’s Project Teams — regionally organized
• OFPC’s current HUB Team: Lynda Wallace, Christi Johnson,
Hopeton Hay, Dana Swann
•
Components’ HUB Teams
•
Bonding and Technical Services
• Outreach opportunities
9
U. T. System OFPC
HUB Program
BTA Pilot Project: Scope of Services
• Advocacy and Outreach
• Qualifications Assessment
• One-on-One Support Services
• Reporting and Evaluation
10
U. T. System OFPC
HUB Program
BTA Pilot Project: Advocacy and Outreach
• Identify contracting opportunities
 Bid packaging
 Schedule/Timing parameters
• Targeted outreach
 Dissemination of contracting opportunities
 Match HUB contractors to opportunities
• Contractor outreach
 Establish relationships with area contractors
 Use existing contractor databases
• Sponsor workshops and seminars
 Trade associations
 Partner with minority business organizations and trade associations
11
U. T. System OFPC
HUB Program
BTA Pilot Project: Qualifications Assessment
• Application Process
 Technical Assessment
 Projects
 References
 Financials
• Establish bonding eligibility and capacity
• Determine working capital
12
U. T. System OFPC
HUB Program
BTA Pilot Project: One-on-One Support
Services
General Business Management
•
Financial Administration
•
Technical Assistance
•
Insurance
•
Bonding and Working Capital
•
Performance Monitoring
These services are provided with in-house Consultants, CPAs,
Engineers and Construction Specialists.
13
U. T. System OFPC
HUB Program
BTA Pilot Project: Critical Issues
• Construction schedule and cost
• Bid Package structure/content
• Identification/Qualification/Utilization of HUBs
• Contractor Readiness
• Bonding
• Working Capital
14
U. T. System OFPC
HUB Program
BTA Program Performance to Date
• 44 first tier contracts issued — 22 issued to
minority and women-owned firms
• 36 contracts to minority/women-owned firms
at second tier level
• Total HUB participation to date: 36.9% or $82.9M
15
U. T. System OFPC
HUB Program
Specialized Forums
• Collaborative effort between agencies, minority trade
associations and potential contractors and vendors to
provide information and training regarding the
agency’s procurement opportunities.
• Target minority- and woman-owned business and
trade associations.
continued
16
U. T. System OFPC
HUB Program
Specialized Forums (continued)
• Introduce HUB firms to key staff and prime firms and
contractors doing business with the agency
• Provide educational opportunities and workshops
• Invite HUBs to make presentations of their services
or goods
• Advertise forums in trade publications to target
HUBs
• Inform HUBs of potential contract opportunities
continued
17
U. T. System OFPC
HUB Program
Specialized Forums (continued)
• Partner with other state agencies to co-sponsor
forums
• Partner with local minority organizations to reach
potential HUBs
• Host forums in each region where U. T. System
projects will be advertised or are currently active
18
U. T. System OFPC
HUB Program
First Tier HUB Subcontracting Pilot
Project: Overview
• Generate interest in the M/WBE community
• Advertise opportunities at all holding venues such as the different
minority councils, chambers; AGC; ABC; DFW/MBDA; hold
networking sessions; workshops; advertise bid packages with dates
and a project overview
• Identify M/WBE firms and develop a list of potential subcontractors
• Notification of RFP forthcoming to determine interest level
• Pre-qualification process to meet general contractor and project
requirements
• Provide assistance in meeting requirements, i.e., insurance, obtaining
bonding, guidance, etc.
continued
19
U. T. System OFPC
HUB Program
First Tier HUB Subcontracting Pilot
Project: Overview (continued)
• Make lists available to majority subcontractors for additional tier
spending
• Minimum of three M/WBE firms per package depending on
availability
• Utilize Texas Building and Procurement Commission’s HUB
certification list
• Maintain open communication with M/WBE firms
• Hold networking mixers for each bid package specific to related trades
• Develop bid packages that offer the maximum subcontracting
opportunities
• Facilitate partnering opportunities with prime and tiered
subcontractors
20
U. T. System OFPC
HUB Program
Results of Initiatives:
TOTAL $
HUB $
HUB%
FY 02
$337,754,000
$34,113,000
10.1%
FY 03
$532,524,000
$86,694,000
16.28%
Conclusions:
• Declining percentages were reversed
• Record-level HUB participation achieved
• Accomplished despite a dramatic increase in total construction
spending
21
U. T. System OFPC
HUB Program
Questions?
www.utsystem.edu/fpc
22