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Supplier Diversity Overview – “Doing Business with PG&E”Salvador Enriquez Supplier Diversity ExpertAugust 21, 2015
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PG&E’s Supplier Diversity Commitment
“I’m convinced the work we do on supplier diversity is so integral to PG&E’s success – and so important for our customers. In fact, I’m convinced it’s never been more important because it aligns directly with two of the most critical priorities we’re focused on right now. The first is, improving our operations to be as safe, reliable and affordable as they can be. And the second is, investing in and helping to revitalize California’s economy. Increasing our business with diverse suppliers helps us achieve both.”
Tony F. Earley, Jr.CEO and PresidentPG&E Corporation
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Company Facts Fortune 200 company Located in San Francisco, CA $15.6B in operating revenues Over 22,000 employees
Services to 16M Customers 70,000 sq. miles with diverse
topography Over 50% of PG&E’s electric supply
comes from non-greenhouse gas emitting facilities
PG&E – Company Overview
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History of Supplier Diversity
1969
The Beginning• Nixon signs
Executive Order 11458
1980s
Government Compliance• Governments begin
reporting
1970s
The Right Thing to Do• MBDA founded• NMSDC founded• SBA launches loans for
MBEs
1990s
Value Proposition• WBENC founded• Corporate Programs
begin to grow
2000s
Recognition• NGLCC Founded• Increased recognition
of strategic importance
2010s
Return on Investment• Focus on
quantifying the value proposition
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What is a Diverse Supplier?
MBEs
WBEs
DVBEs
LGTBEs
66
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PG&E Supplier Diversity:5-Year Performance Trend
$268.4M54.4%
*Not Adjusted
In 2014, PG&E spent over $2.1B with CPUC-certified diverse suppliers.
2010 2011 2012 2013 2014
$1,133,827,842
$1,610,731,821
$2,051,818,801
$2,317,040,088 $2,111,625,260
32.7%
36.6%38.8%
42.1% 40.9%
Total DBE % DBE
%
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Portfolio Spend Area Highlights Portfolio Spend Area Highlights Portfolio Spend Area Highlights
Generation Portfolio
Materials and Services to generate:•Hydro Power •Fossil Power •Renewable Power
Corporate Services
Business ConsultingFinancial ServicesForms and StationaryHR / Staffing ServicesLegalMarketingOffice SuppliesStaff AugmentationTravel
Electric Ops
Electrical ConstructionTransmission & Distribution TransformersVegetation ManagementCivil ConstructionMRO MaterialsEngineering Services
Diablo Canyon
Power Plant (DCPP)
DCPP Nuclear ProcurementDCPP Warehousing and Logistics
IT / Telecom
Computer Hardware and SoftwareTelecom EquipmentIT ConsultingIT Security
Gas Ops
Hydro-TestingPipeline ConstructionCivil ConstructionEngineering ServicesData IntegrityMRO MaterialsGas Line Inspection
Supplier Quality
Product InspectionsField Material Problem ReportingManagement of Vendor Quality Programs
Customer Care
Consultant Services for Energy Efficiency Programs:•Customer Operations•Integrated Demand-Side Management•Smart Meter
Shared Services
Transportation ServicesEnvironmental (Permits, Licensing, Remediation)Facilities Management Corporate Security
PG&E Categories of Spend
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Construction Experience Viable firm – operating for at least two years Demonstrated similar project experience in Gas Pipeline, Transmission and
distribution construction Demonstrated knowledge of PG&E, industry, environmental, and safety standards Demonstrated adherence to construction schedules Firm’s supervisors must have at least five years of journeyman experience Ability to provide five current references from satisfied customers
Safety Records – PICS Registration Review Safety Program and Personnel OSHA 300 Logs – 2 Years Experience Modification Rating – 2 Years (Below 1.0)
Financial Financial records maintained in accordance with Generally Accepted Accounting
Principles (GAAP) for last 2 years Evidence that company has a good credit rating and is financially stable A U.S. Federal Taxpayer ID number or country equivalent taxpayer identification Ability to collect and pay appropriate sales tax and other taxes to proper agencies Ability to utilize Electronic Data Interchange (EDI) for receiving/confirming orders and
invoicing
Qualification Requirements for New Suppliers – Core Business
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Organizational and Operational InfrastructureResumes of Managers, Superintendents and ForemenAdequate Office and Management Support (Org Chart)Overview of Yard Facilities, Shop, Warehouse, and Tooling to Support Field Operations
Insurance Policies and BondingPG&E’s minimum insurance requirements vary depending upon size of contact and risk level of
work performed. The following is an example of the requirements for a large construction job:• $1 Million Employer’s Liability• $10 Million General Liability• $2 Million Business Auto• $1 Million Pollution (if work involves contact with hazardous waste)• Worker’s Compensation Insurance• Documentation from a bonding firm showing bonding capacity of $500,000 single and
$2,000,000 aggregate
LicensesActive California State Contractors License for applicable classification in accordance with the
requirements of the Contractor’s State License Board
Union StatusSignatory, in good standing, with the applicable Labor Unions and evidence that all dues and
benefits are paid in accordance with Union requirements
Qualification Requirements for New Suppliers (cont.)
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Contract Opportunity Announcements
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PG&E Prime Supplier Program
Prime Suppliers are key contributors to PG&E’s supplier diversity goal achievement and to expanding opportunities for diverse businesses.
Over 40% accomplished through our prime suppliers
2014 PG&E Supplier Diversity SpendOver $2.1B
Prime Supplier Program Other Direct
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PG&E SD Key Initiatives
EmergingTechnologies
20+ CBOs 100+
Events
DSSafe
DSGreen
DSGlobal
SWOTAnalysis
UCLAMDE
Mentors
ATMI
SmartGrid
BusinessPlan
ISOCerts
Supplier Development
TechnicalAssistance
Program
Outreach Events
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Supplier Development Program Each year, 5-10 suppliers are
identified for our robust Track One supplier development.
Selection based on opportunity assessment by Cross-Functional Development Team.
Customized Business Development Plan created for each supplier designating actions and owners.
Supplier has access to executive mentorship and technical assistance scholarships.
Our Supplier Development
Program Helps Us Reach New Heights in
Supplier Diversity
14Three-Tier Technical Assistance ProgramResources for DBEsSignature Initiatives• Diverse Suppliers are Safe• Diverse Suppliers Go Green• Diverse Suppliers Go Global• Diverse Supplier are CyberSecure
Trade Missions to Industry Tradeshows• Distributech, American Gas Association, HydroVision, PowerGen
Technical Assistance Partnerships and Scholarships• UCLA and University of Washington MDE Programs• ISO 9001/14001 Certification Training• SBA Workshop Partnerships• Access to Capital Training• Small Business Development Training / Scholarships
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Preparing DBEs to compete in Emerging TechnologyUniversity of California Advanced Technology Management Institute• Helping entrepreneurs compete in a world of constant innovation
Emerging Technologies Coordinating Council’s TRIO* Symposium• Educating on CA’s incentive/rebate and emerging technology programs
DistribuTECH Conference and Exhibition• Utility industry’s leading smart grid conference covering automation and
control, renewable energy integration and advanced metering, etc.
PG&E Pacific Energy Center Programs• Hosting a series of free engagement and educational workshops on Smart
Grip technologies, process and markets
*TRIO = Technology Research Incubation Outreach
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More information available To learn more about
PG&E’s Supplier Diversity Program, please visit us at
www.pge.com/supplierdiversity/
…where you will find:• 2014 Annual Report• Diverse Business Events Calendar• “Powered by Diversity” Newsletters• “Diverse Suppliers Go Green”
materials• Additional information & resources
17Supplier Diversity Resources● PG&E Gas Operations Supplier Diversity Contact: Salvador Enriquez
(415) 973-8800 [email protected]
● PG&E Prime Supplier Program Contact Bob LeFave(415) 973-8000 [email protected]
● California Public Utilities Commission (CPUC) Supplier Clearinghouse
www.thesupplierclearinghouse.com(800) 359-7998
● National Minority Supplier Development Council (NMSDC)
www.nmsdc.org(212) 944-2430
● Women’s Business Enterprise National Council (WBENC) www.wbenc.org(202) 872-5515
● Department of General Services (DGS) – DVBE Certification
www.pd.dgs.ca.gov(916) 375-4940
● Lesbian, Gay, Bisexual and Transgender (LGBT) – Certification
[email protected](202) 234-9181
● Local Chambers of Commerce: • California Hispanic Chamber of Commerce• Asian Business Association• Black Business Association• Latin Business Association• National Association of Women Business Owners• National Center of American Indian
Development
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Questions???
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Thank You!
