Capital Projects and Diverse Supplier Inclusion
As Entergy continues to invest in infrastructure and grid modernization projects, we’ve had to take special steps to ensure local diverse suppliers (often smaller firms) have opportunities to participate. Due to the scale and scope of large capital projects, it’s often hard for smaller firms to compete. In order to fulfill our commitment to the communities we serve, we strengthened our second tier supplier program to maximize opportunities for local diverse firms.
We implemented a threefold process: 1) Communication during the request for proposal (RFP); 2) Evaluating the Prime contractor’s subcontracting plan and; 3) measuring results.
The RFP process includes:
- The prime contractor must submit a subcontracting plan listing the local and diverse subcontractors.
- The bid documents include a listing of potential diverse subcontractors and additional resources to identify potential subcontractors.
- Prime contractors are asked to demonstrate how they plan to achieve the prescribed target for diverse subcontracting.
- Entergy’s commitment to supplier diversity is reinforced during pre-bid meetings by our supply chain organization, project managers and other Entergy leaders.
The evaluation process includes:
- The prime contractors’ subcontracting plan is evaluated and weighted as part of the commercial evaluation.
- Responses not meeting our expectations are rejected and the prime contractor is required to revise and resubmit.
Post-bid practices include:
- Prime contractors must report results quarterly and during business review meetings.
- Supplier diversity results are included as a key performance measure that is reviewed by senior leadership.
- Prime contractors are asked to mentor local diverse suppliers as part of our capacity building initiative.
Our second tier spend by engineering, procurement and construction contractors increased over 500% from 2015 to 2016 and in April, Entergy was recognized by the Women's Business Enterprise National Council with the America's Top Corporations for Women's Business Enterprises award.
Our focus on diverse suppliers benefits all of our stakeholders and is an important component of our commitment to the communities we serve.