Companies that wish to compete for high-end governmental contracts must be able to attract and secure the services of MWDVBEs for contracting purposes. This is due to their needing to meet contracting criteria involving the ability to show a commitment to MWDVBE supplier diversity outreach. The goal is to get companies to partner with qualified MWDVBEs in government contracts.

An MWDVBE is a Minority- Woman- or Disabled Veteran-owned Business Enterprise that is at least 51% owned, controlled, and operated by men or women who can be categorized in terms of at least one of the following: African Americans, Hispanic Americans, Asian Americans, Native Americans, Non-minority women, or Service Disabled Veterans.

One of the most challenging areas for companies that seek government contracts is to conduct outreach that effectively attracts MWDVBEs. The following tips will help you in this area.

1. GOALS.

Setting quantifiable goals for making purchases from minority-owned businesses (MBEs) and women-owned business (WBEs) is critical to the success of any supplier diversity program. Goals set the necessary performance standards. Goals are established by customer requirements, bench marking and using historical best performance.

2. ACCOUNTABILITY.

Managers and individual buyers need to be held accountable for reaching MBE and WBE goals. The best companies include this in buyer performance appraisals along with cost savings, product/service quality, and reduced procurement lead time.

3. PRE-SOURCING.

Correctly matching MBE and WBE suppliers with procurement opportunities needs to be an ongoing and proactive process. Forecasting purchasing requirements helps save time, reduce risks, and also helps ensure diversity. Pre-sourcing is part of effective supply chain management and helps ensure MBE and WBE suppliers get a fair opportunity to compete.

4. ADVISORY GROUP.

The supplier diversity program must be integrated into the main mission of the buying organization. Establishing a cross-functional advisory committee provides valuable feedback on how to improve the program, obtain resources, and get “buy ins.”

5. AWARDS PROGRAM.

Successful supplier diversity programs are no accident. Persons who put in the extra effort should be recognized to reward them and encourage others.

6. TIER 2.

The supplier diversity program must also include Tier 2 or subcontractors. Tier 1 suppliers invoice the buying organization.Tier 2 suppliers invoice the Tier 1 suppliers.

7. EXCLUDABLES.

The list of items excluded from MBE and WBE goals should be kept to a minimum. Examples of items typically excluded from the base are payroll, taxes, and intra-company transfers. It helps if there is a set of industry standards in this area.

8. CAPACITY BUILDING.

Finding qualified MWDVBEs may require developing a strategic plan to develop the capacity of organizations with potential to become good resources. The best programs include ongoing education.

9. CERTIFICATION.

Only MBE/WBE firms that have been certified by an accredited third-party agency should be used. Use of certified suppliers helps prevent the use of “front” companies.

10. OUTREACH.

A pro-active program is needed for outreach to minority- and women-owned businesses. This involves attending trade fairs, having a web site, advertising, etc. Having an Internet presence is crucial. An internal supplier diversity intranet is also a best practice.

Based in part on an article from February 2001by Richard J. Hernández, CPCM, www. E -MBE.net