| Authority/Reference(s) | |
|---|---|
| Revision Date | December 29, 2022 |
Policy
When HUB subcontracting opportunities have been determined, the HUB Coordinator informs the prime contractor that they must notify all subcontractors reflected on the HUB Subcontracting Plan (HSP) within ten days of contract award. A copy of the prime contractor's notifications must be submitted to the DFPS HUB mailbox for review by the HUB Coordinator.
Subsequently, the HUB Coordinator schedules a HUB post-award meeting or participates in a meeting to go over HUB contract requirements, including submission of the Progress Assessment Report (PAR) Forms and HSP change request process.
All HUB related forms must be maintained in SCOR.
Progress Assessment Report (PAR)
PAR Forms are submitted by the prime contractor with each invoice as a condition of payment. Prime Contractors that indicate they will “self-perform” the scope of work in their HSP are still required to submit $0 PAR Forms with each invoice as a condition of payment.
Contract staff must monitor the HSP and assess the PAR Forms for compliance and reporting throughout the duration of the contract to ensure the primary contractor is utilizing only the approved subcontractors on the HUB Subcontracting Plan (HSP, Form 4529, Form 4531).
Prior to DFPS issuing a payment to the prime contractor, contract staff must:
- Verify the subcontracting payments are reflected on the PAR Form by comparing the subcontractors' invoices with the invoice submitted by the prime contractor;
- Verify the subcontractors listed on the PAR Form match those listed on the approved HSP;
- Load the PAR Form and supporting documentation into SCOR; and
- Email the DFPS HUB mailbox with the approved PAR Form that has been uploaded to SCOR. Include the “contract number” and “PAR Approved” in the email subject line.
Email the DFPS HUB mailbox for any questions related to PAR/HSP discrepancies.
HUB Subcontracting Plan (HSP) Changes
Prime contractors may change the HSP by submitting the DFPS HUB Subcontracting Plan (HSP) Change Request form to their respective contract manager. This form, along with supporting documentation demonstrates good faith effort.
The prime contractor may not utilize a new subcontractor without prior approval through the HSP change process.
Steps to changing an HSP:
- The prime contractor submits Form 4529 to the contract manager with the Good Faith Effort Documentation.
- The contract manager reviews Form 4529 for completeness and submits to the DFPS HUB mailbox for review of good faith effort compliance.
- HUB Coordinator determines whether it is satisfactory, signs, and sends back to contract manager. The HUB Coordinator and the contract manager will work with the prime contractor to resolve any outstanding issues, if necessary.
- The contract manager performs proper background check protocols, and any other necessary requirements. (i.e. DFPS-PCS 102).
- Once completed, the contract manager signs the Form 4529, uploads into SCOR in the Documents tab using the “HSP Change” document type option, and sends the approved Form 4529 to the Prime Contractor and cc the HUB Coordinator.
Six Month Good Faith Effort (GFE) for Specific High-Volume Subcontractor Change
To satisfy the HSP Change Good Faith Effort requirement of 34 TAC §20.285 and minimize disruption of client services, DFPS recognizes a six-month GFE for contracts with a high volume of monthly subcontractor changes.
- Applicable contracts include: Home Studies and Report Services, and translations services, but this is not an exhaustive list.
- For applicable contracts, prime contractor will submit Form 4529 with supporting GFE documentation to the DFPS HUB mailbox for approval by HUB Coordinator.
- The HUB Coordinator will review and approve, if compliant.
- The HUB Coordinator will send approved Form 4529 to contract manager to sign and upload into SCOR.
- Once completed, the contract manager signs the Form 4529, uploads into SCOR in the documents tab using the “HSP Change” document type option, sends the approved Form 4529 to the Prime Contractor and cc’s the HUB Coordinator.
With this GFE approval on file, the prime contractors are allowed to add new subcontractors to their HSP for a period of six months without needing further HUB Program approval from the HUB Coordinator.
The GFE approval must be processed and completed. Renewals will need to be processed every February and August, for the applicable next six months.
Prime Contractor Exceptions for Subcontracting Under $10,000
To minimize constraints, prime contractors are allowed a new subcontracting relationship for up to $10,000 for the lifetime of the contract, without obtaining prior approval by submitting Form 4529.
For first tier subcontracting valued at $9,999.99 and below, DFPS considers this a noncompetitive subcontracting opportunity and recognizes the 34 Texas Administrative Code §20.82 (b)(1) threshold for noncompetitive purchases in state procurement.
This exemption it is not to circumvent the intent of good faith effort requirements; rather it is intended to establish clear parameters in complex contracts for complying with the State of Texas HUB requirements, streamlining HUB administrative tasks, and avoiding any delays for incidental or ancillary purchases valued at $9,999.99 and below.
These subcontracts are referred to as “non-HSP subcontractors” on the PAR form, since these purchases are considered non-competitive and did not go through the HUB Good Faith Effort requirements.
HSP Noncompliance Process
The prime contractor is deemed non-compliant and subject to remedial actions if the prime contractor:
- Subcontracts any part of the contract in a manner inconsistent with the HSP;
- Subcontracts without demonstrating a good faith effort; and,
- Did not obtain prior approval from DFPS.
When contract staff identify an HSP deficiency, actions must be taken that include:
- Disallow costs incurred and reject the invoice;
- Notify the HUB Coordinator and provide documentation;
- Work with HUB Coordinator and Contracts Legal to determine whether the HSP deficiency is attributable to inadequate good faith effort by the prime contractor;
- HUB Coordinator works with the prime contractor in an effort to address the deficiency;
- If necessary, require a corrective action plan, with review and approval obtained by the HUB Coordinator and Legal;
- Release payment after the corrective action is approved.
Vendor Performance Reporting
The first HSP deficiency during the duration of the contract will not negatively impact the performance of the contractor, as long as corrective action is satisfied. Subsequent noncompliance issues will be documented via the Vendor Performance Form DFPS 0147 and reported through Vendor Performance Tracking System (VPTS).