Contact: Rich Edwards, (512) 499-4778

Date: November 5, 2004

UT System News Release

UT System Committed to Building on HUB Success

AUSTIN – In fiscal year 2004, The University of Texas System Office of Facilities Planning and Construction (OFPC) spent $156 million with companies owned by minorities and women. This represents 24% of OFPC's total expenditures ($649 million) on the construction and professional services needed for large scale improvement projects.

Of the $156 million OFPC spent with minority and woman owned businesses, $129 million went to certified Historically Underutilized Businesses (HUBs). Other UT System offices spent an additional $3 million with certified HUBs, bringing the total expenditures to $132 million in FY 2004. This amounts to 19.29% of its total expenditures ($685 million), up from 15.7% in FY 2003, and marks the third consecutive year that the percentage of HUB expenditures by the System has increased.

This compares favorably to the 14.5% average HUB expenditure by Texas state agencies and institutions of higher education as reported by the Texas Building and Procurement Commission. At the System, the percentage of HUB spending has more than doubled from 9.58% in FY 2001, while the actual dollar amount is over five times greater, for an increase of over $107 million.

"These numbers demonstrate our commitment to expanding the opportunities for all businesses in the state," said Scott C. Kelley, executive vice chancellor for business affairs. He added that, "As these historically underutilized businesses become more and more competitive, all Texans benefit."

The System is now focused on building on this positive momentum. Effective Nov. 1, the System consolidated its HUB Program with HUB operations in the Office of Facilities Planning and Construction (OFPC). This consolidation provides combined resources to strengthen and leverage opportunities for HUB purchasing throughout the UT System.

The System is also expanding the staff dedicated to HUB initiatives. Among other functions, staff members will be assigned specific construction markets and will be working with prime contractors and large subcontractors to identify opportunities for HUB firms. To lead this group, Kelley has appointed Lynda Dyess as senior director of HUB Programs and Thomas Larralde as director of HUB Programs.

"Under Lynda's leadership, OFPC HUB operations have grown exponentially, and the programs she has developed are widely recognized and emulated throughout Texas. Mr. Larralde is very familiar with the UT System and brings a vast background of community outreach and experience working with historically underutilized businesses," said Kelley.

Dyess and Larralde will also inherit innovative System programs, such as the Mentor-Protégé Program and the Bonding and Technical Assistance Program, that have contributed to the current success.

The Mentor-Protégé Program matches large, established companies with small, emerging HUB companies in order to facilitate the protégé company's development and growth for increased business capacity. Since its implementation, the program has had 18 mentor-protégé teams and 8 have graduated. For the 2004 fiscal year, nine construction contracts were awarded for a total dollar value of over $9 million to construction related protégé firms.

The Bonding and Technical Assistance Program assists small and emerging HUB subcontractors to qualify for work on construction projects. The program has helped more than 300 firms in the Houston area, with over $106.5 million paid to HUB firms on two M. D. Anderson Cancer Center construction projects.

"The HUB staff will continue to focus on these important initiatives. As the HUB Program continues to evolve, we will identify new approaches to assist minority and woman owned firms to work on projects in all areas of the state," said Dyess.

The UT System has 15 campuses, including nine academic and six health institutions, and an annual operating budget of $8.5 billion (FY 2005). Student enrollment is projected to exceed 185,000 students in the 2004 academic year. The UT System confers one-third of the state's undergraduate degrees and educates three-fourths of the state's health care professionals annually. With more than 87,000 employees, the UT System is one of the largest employers in the state.

UT System HUB homepage: http://www.utsystem.edu/fpc/HUB.htm

UT System Office of Facilities Planning and Construction homepage: http://www.utsystem.edu/fpc/