Tier2/Subcontracting Expenditures Report

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Tier2/Subcontracting Expenditures Reporting

It is the policy of Verizon Wireless, consistent with other equal employment opportunity responsibilities, to provide the maximum practicable opportunity to minority-, women-, persons with disabilities, Vietnam era-, and service disabled veteran-owned business enterprises (M/W/DV BEs). Their participation in our business reflects our commitment as a corporate citizen to support the economic development of the communities that we serve.

Purpose of Tier2/Subcontracting Strategy and Reporting

The Verizon Wireless Tier 2/Subcontracting strategy M/W/DV BE's exists to ensure that a "Good Faith Effort" is made to maximize opportunities for these Enterprises to participate as suppliers of products and services to Verizon Wireless through its Prime suppliers. For the purposes of this document, the term "Prime" supplier means: a supplier or contractor (not classified as an M/W/DV BE) with a direct legal relationship to Verizon Wireless. A Tier 2/Subcontractor is an M/W/DV BE supplier or contractor who has been hired by the Prime supplier to perform a portion of the contracted work in support of Verizon Wireless business.

Prime Suppliers meeting participation criteria may be asked to provide a Tier2 Subcontracting Plan in advance of or upon award of a contract.

Prime Suppliers meeting participation criteria will be required to provide a quarterly report on a calendar quarter basis reflecting the utilization of M/W/DV BE's in the fulfillment of their Verizon Wireless contract

The Tier 2/Subcontracting program serves as an enhancement to, and not as a replacement for, existing efforts aimed at increasing "direct" (Tier 1) opportunities for M/W/DV BEs.

Participation Criteria

The Verizon Wireless Tier 2/Subcontracting Plan applies to firms who are Prime Suppliers in the following categories:

   - Construction contracts exceeding $500K.

   - Purchases/Contracts exceeding $1M for products or services.

   - Purchases/Contracts that offer M/W/DV BE subcontracting opportunities regardless of      value, where appropriate.

An M/W/DV BE subcontracting plan may be required from Prime suppliers of Verizon Wireless for all contracts in the first two categories above.

An M/W/DV BE subcontracting plan may be required from Prime suppliers as determined by Verizon Wireless for lower value (e.g. $500K) purchases/contracts that afford subcontracting opportunities.

Potential Prime suppliers will be informed of Verizon Wireless' Tier 2/Subcontracting Plan requirements in advance of awarding business.

Verizon Wireless will inform potential Prime suppliers that their M/W/DV BE Subcontracting Plan will be one of many relevant evaluation factors to be considered by Verizon Wireless in awarding contracts for products and services.

Tier 2/Subcontracting Utilization Reports quarterly and thirty days after each quarter ends (ex: first quarter reports are due on April 30). Reports are submitted via e-mail at: vzwprimesuppliers@verizonwireless.com

Utilization of Minority-, Women-, Persons with Disabilities, Disabled Veteran-, Vietnam Veteran- owned Business Enterprises

The Prime supplier should agree to make a "Good Faith Effort" to carry out Verizon Wireless' policy in the award of contracts to M/W/DV BEs, to the fullest extent, consistent with the efficient performance of a contract agreement for the provision of products and services to Verizon Wireless. The five legally defined "Good Faith Effort" steps are:

1. Contact was made with the awarding department to identify M/W/DVBEs.
2. Contact was made with other state and federal agencies and with local organizations to identify M/W/DVBEs.
3. Advertising was published in trade papers and papers focusing on M/W/DVBEs, unless time limits imposed by the awarding department do not permit that advertising.
4. Invitations to bid were submitted to potential M/W/DVBE contractors.
5. Available M/W/DVBEs were considered.
6. The Prime Supplier shall provide Verizon Wireless with the M/W/DV BE Tier 2/Subcontracting Utilization Report, on a calendar quarterly basis.

Contract Cancellation Clause if Prime Supplier does not comply:

In any contract agreement, the Prime supplier shall agree that: falsification or misrepresentation of, or failure to report a disqualifying change in, the M/W/DV BE status utilized by the Prime supplier may lead to termination of this agreement. A Prime supplier's failure to comply in good faith with any M/W/DV BE utilization goals established by Verizon Wireless, or failure to cooperate in any investigation conducted by Verizon Wireless or by Verizon Wireless agent will constitute a material breach of contract.

In the event of any such breach, Verizon Wireless may cancel contract agreement upon written notice to Prime supplier. At that time, the Prime supplier waives all claims related to such cancellation.