An annual forum hosted by the A&M System provides free
information and training for operators of small, minority and women-owned
businesses interested in seeking contracts with A&M universities and
agencies.
(College Station)—Texas A&M International University in Laredo topped the 2006 list of state agencies spending more than $5 million annually that buy a high percentage of goods and services from companies certified as Historically Underutilized Businesses (HUBs). Of total expenditures, the university spent 64 percent with HUB vendors.
Other A&M System members ranking in the top 25 were Texas A&M University-Kingsville, ranking eighth with 36.6 percent in expenditures with HUB vendors; Tarleton State University, ranking ninth with 35.6 percent; Texas A&M Health Science Center, ranking fifteenth with 30 percent; Texas A&M University at Galveston, ranking twenty-second with 26.6 percent; and Texas Cooperative Extension, ranking twenty-fourth with 26.5 percent.
“These HUB milestones exhibited across the A&M System demonstrate our commitment to providing equal access and equal opportunity for minority and women-owned businesses,” said System Chancellor Michael D. McKinney. “We are equally committed to promoting educational opportunity for all Texans, as we strive to make the demographics of the student population on our campuses more reflective of the population of our great state.”
Other System members making noteworthy gains in 2006 HUB expenditures but not included in the Top 25 list are: Texas Engineering Experiment Station, with 27.7 percent; Texas Engineering Extension Service, with 23.2 percent; Texas Transportation Institute, with 22 percent; Texas A&M University, with 21.9 percent; and Texas A&M University-Corpus Christi with 21.9 percent.
The Texas Procurement and Building Commission annually ranks more than 120 state agencies based on the percentage of their expenditures spent with HUB vendors. For its Top 25 list, the commission ranks agencies spending more than $5 million annually.
| A&M System members ranking in the state’s top 25 agencies in HUB expenditures* | ||
|---|---|---|
| 1 | Texas A&M International University | 64.0% |
| 8 | Texas A&M University – Kingsville | 36.6% |
| 9 | Tarleton State University | 35.6% |
| 15 | Texas A&M Health Science Center | 30.0% |
| 22 | Texas A&M University at Galveston | 26.6% |
| 24 | Texas Cooperative Extension | 26.5% |
| *chart ranked state agencies in Texas spending more than $5 million in fiscal year 2006, with the highest percentages spent with HUB vendors. | ||
HUB expenditures across the A&M System as a whole have shown a dramatic 220 percent increase over the past five years. During fiscal year 2006, the A&M System spent more than $106 million out of total of more than $473 million, or 22.5 percent, with HUB vendors. This rate exceeds the 12.7 percent HUB participation rate across the University of Texas System, the 13.7 percent overall average by state agencies and the 15.4 percent average by institutions of higher education.
During fiscal year 2006, the A&M System did business with 1,194 HUB vendors. HUB expenditures across the A&M System among African American owned businesses was higher than it’s ever been, totaling more than $10 million and reflecting 2.18 percent of the total. This figure reflects an impressive 541 percent increase over the last 5 years.
“Our success is due in part to the strong commitment of our System leadership and CEOs to making sure that staff members are dedicated to identifying and doing business with HUB vendors,” said Jim Fletcher, vice chancellor for administration for the A&M System.
Expenditures with HUBs from the A&M System Offices reached a new high in fiscal year 2006.
Of $80.5 million in total expenditures, more than $17.5, or 21.8 percent, was purchased from HUB vendors. This percentage reflects a steady increase in HUB expenditures by System Offices over the past six years. Last year, of $154.5 million in total expenditures, $25.5 million, or 16.5 percent, was purchased from HUB vendors.
A high percentage of A&M System Offices expenditures is typically
spent on major construction and related real estate projects for System
universities and agencies. In fiscal year 2006, major construction projects
accounted for 94 percent of total expenditures. The other six percent was
spent on commodities and other services. 