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Publication Date: June 1, 1993

Chapter 9

General Provisions

9.26 Historically Underutilized Business Program

The University of Texas at San Antonio supports a Historically Underutilized Business Program to encourage and assist participation by historically underutilized businesses in University contracting and purchasing. Through the adoption of this program, the University commits itself to increasing the number and value of contracts and purchases awarded by it to historically underutilized businesses in a manner consistent with state and federal law. The institutional goal is that those University contracts and purchases be at least representative of the extent to which historically underutilized businesses are represented among all businesses contracting with and/or purchasing from the University.

  1. Objectives

    The objectives of the Historically Underutilized Business Program include the following:

    1. To encourage and assist participation in University procurement by historically underutilized businesses.

    2. To reaffirm UTSA's commitment to the principles of equal opportunity for all businesses and to act affirmatively to encourage and assist historically underutilized businesses to participate in the University's procurement process.

    3. To reaffirm the principles of equal opportunity to an additional, major domain of the University activity--the purchase of supplies, materials, services or equipment.

    4. To encourage further expansion and development of historically underutilized businesses as defined by state law (Vernon's Texas Civil Statutes Annotated, Chapter 2161).

    5. To support and assist the small historically underutilized business infrastructure in San Antonio and the UTSA service area in becoming familiar with the procurement process at UTSA and to support growth and new business opportunities in San Antonio, thereby promoting the region's economic development.

    6. To expand the number of suppliers and contractors for procurement, further encouraging competition, with the goal of improved economies in university purchasing.

    7. To support and encourage the improvement of business conditions encountered by socially and economically historically underutilized businesses.

    8. To heighten awareness throughout the University community of the capabilities and needs of small historically underutilized businesses which are able to respond to the needs of UTSA, and can deliver the supplies, materials, services and equipment required by UTSA.

    9. To further expand the University business educational services to small historically underutilized businesses as well as other businesses as part of UTSA's commitment to stimulate growth and development.

    10. To be in full compliance with the intent of the 72nd Texas Legislature as provided for in Vernon's Texas Codes Annotated.

  2. Definitions

    Historically underutilized business is defined in Vernon's Texas Codes Annotated (Chapter 2161.001) as:

    1. a corporation formed for the purpose of making a profit in which at least 51 percent of all classes of the shares of stock or other equitable securities are owned by one or more persons who have been historically underutilized because of their identification as members of certain groups, including Black Americans, Hispanic Americans, women, Asian Pacific Americans, and American Indians, who have suffered the effects of discriminatory practices or similar insidious circumstances over which they have no control;

    2. a sole proprietorship for the purpose of making a profit that is 100 percent owned, operated and controlled by a person described in item 1 above;

    3. a partnership for the purpose of making a profit in which 51 percent of the assets and interest in the partnership is owned by one or more persons described in item 1 above. Those persons must have a proportionate interest in the control, operation and management of the partnership's affairs;

    4. a joint venture in which each entity in the joint venture is a historically underutilized business under this subsection; or

    5. a supplier contract between a historically underutilized business under this subsection and a prime contractor under which the historically underutilized business is directly involved in the manufacture or distribution of the supplies or materials or otherwise warehouses and ships the supplies.

  3. Certification of Historically Underutilized Businesses

    Historically underutilized businesses will be certified by the Office of Minority Business Development of the Small Business Division of the Texas Department of Commerce (TDOC), and/or by the UTSA Purchasing Office.

  4. Program Administration

    In consultation with the UTSA President, the Vice President for Business Affairs will have responsibility for the overall planning, coordination, implementation, and enforcement of the policy outlined in this Program and any subsequent guidelines, rules and regulations which are necessary for its implementation. The Director of Purchasing will have responsibility for the daily purchasing process as it applies to this Program.

  5. Program Components

    1. Education and Information Program

      The University offers an educational and information program featuring the following:

      1. Preparation and distribution of updated brochures describing the University's Historically Underutilized Business Program, the sources of additional information, and those responsible for the program.

      2. The preparation and distribution of concise and readily understandable information about UTSA, common types of purchases, and state procurement policies in terms which will contribute to enhancement and improvement of an understanding of normal requirements and special efforts outlined in this policy.

      3. Preparation and inclusion of lists of historically underutilized businesses along with the lists of other businesses to all University units with purchasing authority.

      4. With assistance of the UTSA Small Business Development Center, develop and conduct workshops and seminars for: (1) appropriate officers, employees and representatives of historically underutilized businesses, as well as other businesses, to familiarize them with procurement practices, and (2) University personnel responsible for purchasing, including any who make final procurement decisions, to ensure an understanding of UTSA policy, its commitment to equal opportunity in purchasing, and to heighten UTSA employees' awareness of and sensitivity to the importance of equal opportunity for historically underutilized businesses.

    2. Purchasing Process

      The University will increase the participation of historically underutilized businesses in the purchasing process by selecting bids or proposals submitted by historically underutilized businesses whenever those bids or proposals are comparable to all other bids or proposals received by the University and whenever such a selection will not conflict with state or federal law.

      To assist participation by historically underutilized businesses, the Purchasing Office will:

      1. make reasonable efforts to help historically underutilized businesses learn how to conduct business with UTSA;

      2. compile, maintain and utilize source lists of certified historically underutilized businesses;

      3. where authorized, minimize the amount of performance bond required on purchases; and

      4. consider progress payments when appropriate.

    3. Assessment

      Progress assessment of the UTSA Historically Underutilized Businesses Program will include the following:

      1. semi-annual reporting to the Vice President for Business Affairs by the Purchasing Office. These reports will be due in the Office of the Vice President for Business Affairs on November 1 (for prior fiscal year) and on April 1 (current fiscal year to date);

      2. periodic survey of historically underutilized businesses, to determine effectiveness of the Program and to seek suggestions and recommendations for improvement/enhancement; and

      3. evaluation of the Program during sponsored workshops and seminars.

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