PRIME/TIER 1 SUPPLIER DIVERSITY STRATEGY
These suppliers sell directly to American Water Works Service Company, Inc., its subsidiary or affiliated companies fulfilling their product or service orders — providing maximum diversity credit. We provide expertise in the form of partner vetting, executive support, mentoring and resource alignment support.
- Minority Business Enterprise (MBE)
- Women Business Enterprise (WBE)
- Veteran Business Enterprise (VBE)
- Service-Disabled Veteran Business Enterprise (SDVBE)
- Disabled Veteran Business Enterprise (DVBE)
- Lesbian, Gay, Bisexual, Transgender Business Enterprise (LGBTBE)
- Disability Owned Business Enterprise (DOBE)
- Disadvantaged Business Enterprise (DBE)
- Historically Underutilized Business (HUB)
If a company holds a current diverse certification, the company is required to submit a copy of your certificate(s) or approval letter(s) to update their vendor profile. The document should include the certifying agency, certification #, and next expiration date (mm/dd/yyyy). Email the certificate or letter of certification to firstname.lastname@example.org. Certified suppliers are not required to submit Sub/Supplier/Tier 2 spend unless otherwise stated in your contract.
Sub/Supplier/Tier 2 Supplier Diversity Strategy
In accordance with the Supplier Diversity Subcontracting Plan Questionnaire and the current fully executed contract on file, Tier 1 prime suppliers are required to submit quarterly Tier 2 diversity spend reporting is required through the Supplier Diversity Portal found at Supplierio quarterly.
Direct and Indirect expenditures with Minority Business Enterprise (MBE), Women Business Enterprise (WBE), Veteran Business Enterprise (VBE), Service-Disabled Veteran Business Enterprise (SDVBE), Disabled Veteran Business Enterprise (DVBE), Lesbian, Gay, Bisexual, Transgender Business Enterprise (LGBTBE), Disability Owned Business Enterprise (DOBE), Disadvantaged Business Enterprise (DBE) or Historically Underutilized Business (HUB) as subcontractors, distributors, value added resellers are counted towards the contractual supplier diversity goal. Please report in the reporting system. Please note that small business Tier 2 spend is also tracked in the diversity reporting system but does not count toward the diversity spend goal targets.
Please note that small business Tier 2 spend is also tracked in the diversity reporting system but does not count toward the diversity spend goal targets.
- The Indirect method is used when the large Tier I Supplier cannot directly relate payments made to a subcontractor for specific work performed for American Water. For example – “overhead” items such as paper, computing expenses, or office maintenance incurred by your company. Also included would be any and all materials and services purchased from small diverse businesses that are used in the direct production of the Tier I suppliers’ products or service. These “indirect expenditures” should be proportionately allocated and reported as outlined in the example below.
- The Direct method is used when a large Tier I Supplier can directly relate payments made for subcontracting a portion of an American Water contract/Purchase Order to a small diverse subcontractor. For example – the Tier I Supplier provides general construction services to American Water and the Tier I Supplier subcontracts earthmoving and painting to small diverse businesses. In this instance, 100% of the painting and earthmoving expenditures/payment to the small diverse business should be reported to American Water.
How this can be done?
- If Tier 1 prime supplier has the ability to track diverse spend by AW business unit (State)
- Report spend by individual state
- If the Tier 1 prime supplier cannot track diverse spend at business unit (State) level, but can track contract value at business unit (State)level. Allocate percentage of total diverse spend to individual state operations.
- Prime tracks contract with NJAW and INAW w separately
- NJAW contract value is $2,500 (50% of Total)
- INAW contract value is $2,500 (50% of Total)
- Total contract value for all AW Operations $5,000
- Total diverse spend is $1,000
- Allocate 50% of diverse total spend to each state operations
Here are the reporting schedule due dates:
|Quarter||Month||Report Due Date|
|First Quarter||January – March||April 30th|
|Second Quarter||April – June||July 30th|
|Third Quarter||July – September||October 30th|
|Fourth Quarter||October – December||January 30th|
Prime/Tier I suppliers should report Sub/Supplier/Tier II Supplier spend at https://unifiedtier2.com/amwater.html.
Learn more and register for access by visiting the Supplier Portal.