Program supporting underutilized businesses shows progress

Travis County’s Historically Underutilized Business (HUB) program made remarkable progress in the last few years despite a few setbacks and political challenges, county officials say.  

The annual report for the program, which promotes equal procurement opportunities for minority- and women-owned businesses, showed increases in the percentage of county contracts awarded since 2018. 

Of the categories served – commodities, construction, professional services, etc. – commodities showed the smallest use of underutilized businesses then, HUB Director Sylvia Lopez told the Travis County Commissioners Court during a presentation of the annual report Nov. 28. 

“Moving the clock forward five years, we went from 5.9 percent utilization (of commodities) to 20.6 percent,” she said. “It feels so good to come before you and give you good news like that.”

County payments to HUB businesses in all categories went from $35.2 million in 2021 to $38.7 million in 2023, a 9.6 percent increase.  

Despite the progress, the program missed goals. Payments to HUB businesses as a percentage of county expenditures were down 12.5 percent as county expenditures rose in that period. 

While payments for commodities as a percentage of all commodities expenditures rose to 20.6 percent, as Lopez pointed out, the goal was 27.4 percent. Payments for construction were at 16.9 percent with a goal of 20.2 percent. Professional services were at 13.8 percent with a goal of 20.5 percent, and services were at 20.2 percent with a goal of 26.3 percent. 

Precinct 1 Commissioner Jeff Travillion praised the program, saying “it went from a volunteer program initially, to a program that is more process-, procedure- and policy-driven.” 

“What we have done is create an ecosystem and partnered with government entities that have minority purchasing programs to not only make a foundation, but build a runway for those companies that want to come in,” he said. 

The program has progressed despite a difficult political environment for diversity, equity and inclusion (DEI) programs, Travillion said. Earlier this year, Texas Gov. Greg Abbott signed a bill banning DEI offices and initiatives in higher education. DEI offices in state colleges will close in January 2024. 

“The improvements have been made during a time when the state of Texas has been trying to get rid of HUB programs and get rid of everything that is diversity, equity and inclusion-oriented,” Travillion said.

This adds a lot of pressure, he said.

“Let’s recognize that the programs are under attack by what we used to call the Confederate states,” he said. “So we have to keep our eyes on what they’re doing and how they’re seeking to destroy them.”

“They have to be run almost perfectly,” he said. “There’s very little margin for error.”

Travillion defended the principles behind the program. 

“When we have taxpayers who are business owners and have the capacity to do business with the county, they should have the opportunity to do so,” he said. “It should not always go to the largest, wealthiest company that has had access to the government forever when others have not.” 

Bills involving HUB programs have been introduced in the Texas Legislature in recent years but haven’t become law. Some of this proposed legislation posed threats to HUB programs, Samuel Guzman, chair of the board of Texas Association of Mexican American Chambers of Commerce, said during the Texas lawmaking session in 2019. 

“This legislative session has been replete with bills that have a negative frontal attack on the intent and purpose of the HUB program and serve to dilute and negate the reason this program was created in the first place,” he said. 

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