1. 1
Supplier Diversity Overview –
“Doing Business with PG&E”
Salvador Enriquez
Supplier Diversity Expert
August 21, 2015
2. 2
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 President
PG&E Corporation
3. 3
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
4. 4
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
5. 5
What is a Diverse Supplier?
MBEs
WBEs
DVBEs
LGTBEs
6. 6
6
6
PG&E Supplier Diversity:
5-Year Performance Trend
$268.4M
54.4%
*Not Adjusted
In 2014, PG&E spent over $2.1B with CPUC-
certified diverse suppliers.
$1,134
$1,611
$2,052
$2,317
$2,112
32.7%
36.6%
38.8%
42.1%
40.9%
2010 2011 2012 2013 2014
%
Millions
Total DBE % DBE
7. 7
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 Consulting
Financial Services
Forms and Stationary
HR / Staffing Services
Legal
Marketing
Office Supplies
Staff Augmentation
Travel
Electric
Ops
Electrical Construction
Transmission &
Distribution Transformers
Vegetation Management
Civil Construction
MRO Materials
Engineering Services
Diablo
Canyon
Power Plant
(DCPP)
DCPP Nuclear
Procurement
DCPP Warehousing
and Logistics
IT /
Telecom
Computer Hardware and
Software
Telecom Equipment
IT Consulting
IT Security
Gas Ops
Hydro-Testing
Pipeline Construction
Civil Construction
Engineering Services
Data Integrity
MRO Materials
Gas Line Inspection
Supplier
Quality
Product Inspections
Field Material Problem
Reporting
Management of Vendor
Quality Programs
Customer
Care
Consultant Services for
Energy Efficiency
Programs:
•Customer Operations
•Integrated Demand-Side
Management
•Smart Meter
Shared
Services
Transportation Services
Environmental (Permits,
Licensing, Remediation)
Facilities Management
Corporate Security
PG&E Categories of Spend
8. 8
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
9. 9
Organizational and Operational Infrastructure
Resumes of Managers, Superintendents and Foremen
Adequate Office and Management Support (Org Chart)
Overview of Yard Facilities, Shop, Warehouse, and Tooling to Support Field Operations
Insurance Policies and Bonding
PG&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
Licenses
Active California State Contractors License for applicable classification in accordance with the
requirements of the Contractor’s State License Board
Union Status
Signatory, 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.)
11. 11
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 Spend
Over $2.1B
Prime Supplier Program Other Direct
12. 12
PG&E SD Key Initiatives
Emerging
Technologies
20+
CBOs 100+
Events
DS
Safe
DS
Green
DS
Global
SWOT
Analysis
UCLA
MDE
Mentors
ATMI
Smart
Grid
Business
Plan
ISO
Certs
Supplier
Development
Technical
Assistance
Program
Outreach
Events
13. 13
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
14. 14
Three-Tier
Technical Assistance Program
Resources for DBEs
Signature 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
15. 15
Preparing DBEs to compete in
Emerging Technology
University 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
16. 16
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
17. 17
Supplier Diversity Resources
● PG&E Gas Operations Supplier Diversity Contact: Salvador Enriquez
(415) 973-8800 supplierdiversityteam@pge.com
● PG&E Prime Supplier Program Contact Bob LeFave
(415) 973-8000 supplierdiversityteam@pge.com
● 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
infor@nglcc.org
(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
