Authority/Reference(s) 34 TAC §20.285, Government Code §2161, 34 TAC §20.14, DFPS Policy Vendor Performance Reporting
Revision Date May 1, 2020

Policy

When HUB subcontracting opportunities have been determined, the HUB Coordinator informs the prime contractor that they must notify all subcontractors reflected on the HSP within 10 days of contract award. A copy of the prime contractor’s notification must be submitted to the DFPS HUB Coordinator.

Subsequently, the HUB Coordinator will schedule a post-contract award meeting, or participate 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. Vendors that indicated 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 contractor is utilizing only the subcontractors approved on the HSP.

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; and,
  • Email the HUB Coordinator at dfpshub@dfps.state.tx.us that the approved PAR Form has been uploaded to SCOR, including the “contract number” and “PAR Approved” in the email subject line.

For any questions related to PAR/HSP discrepancies, email the HUB Coordinator for technical assistance.

HUB Subcontracting Plan (HSP) Changes

Prime contractors may change the HSP by submitting a HSP Change Request Form 4529 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 are:

  • The prime contractor submits the HSP Change Request Form to the contract manager.
  • The contract manager reviews the Request Form for completeness and submits to the HUB Coordinator for review of good faith effort compliance at dfpshub@dfps.state.tx.us.
  • 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 HSP Change Request form, uploads into SCOR in the Documents tab using the “HSP Change” document type option, and then sends the approved HSP Change Form to the Prime Contractor.

Prime Contractor Exceptions for Subcontracting Under $5,000

To minimize constraints, prime contractors are allowed a new subcontracting relationship for up to $5,000 for the lifetime of the contract, without obtaining prior approval through the HSP change process.

This exemption it is not to circumvent the intent of good faith effort requirements; and these small subcontracts must be reflected on the PAR Form and listed as being from a non-HSP vendor.

HSP Non-Compliance 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 non-compliance issues will be documented via the Vendor Performance Form DFPS 0147 and reported through Vendor Performance Tracking System (VPTS).