Purchasing and Contracts

Supplier Inclusion Definitions

Minority-Owned Business Enterprise (MBE)

An independent business that performs a commercially useful function and is at least 51 percent owned and controlled by one or more minority persons of African American, Hispanic American, Asian-Pacific American, or Native American ethnicity.

Woman-Owned Business Enterprise (WBE)

An independent business that performs a commercially useful function and is at least 51 percent owned and controlled by one or more women.

Disabled-Owned Business Enterprise (DBE)

An independent business that performs a commercially useful function and is at least 51 percent owned and controlled by one or more disabled individuals pursuant to the federal Americans with Disabilities Act.

Veteran/Disabled Veteran Business Enterprise (VDBE)

An independent business that performs a commercially useful function and is at least 51 percent owned and controlled by one or more veterans/disabled veterans who have served in the active military and have been discharged under conditions other than dishonorable.

Small Business Enterprise (SBE)

An independent business that performs a commercially useful function; is not owned and controlled by individuals designated as minorities, women, veterans, or physically challenged; and has gross annual sales that do not exceed $2 million.

Second-Tier Purchasing

Second-tier purchasing is a relative term in that it is a function of who is the customer. From a customer’s perspective, a first-tier supplier is a supplier that invoices the customer for goods and services rendered directly by the supplier. A second-tier supplier is a supplier that invoices the first-tier supplier for goods and services rendered.

• Direct-spend second-tier purchasing refers to second-tier supplier products and services that can be identified in support of customer requirements.
• Indirect-spend second-tier purchasing refers to products and services that cannot be identified in support of a specific customer requirement.

Second-tier purchasing maximizes opportunities for small, small disadvantaged, veteran-owned small, service-disabled veteran-owned small, and woman-owned businesses to participate as suppliers of goods and services. The emphasis on second-tier suppliers complements the other initiatives to create a more diverse vendor base from which to select the most competent and able supplier. Small and disadvantaged vendors are still encouraged to pursue opportunities with the university as first-tier suppliers.