Tier II Reporting
As a prime contractor to the federal government, FirstEnergy is required to flow-down the Small Business Subcontracting Plan requirements located in Federal Acquisition Regulation (FAR) Clause 52.219-9 to its large Tier I suppliers (i.e., a large majority-owned company awarded a FirstEnergy contract). This regulation requires any large Tier I supplier receiving a FirstEnergy single (one-time) contract with a dollar value in excess of $550,000 (or $1,000,000 for construction) adopt a subcontracting plan that addresses subcontracting with small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business concerns, small disadvantaged business, and women-owned small business concerns (herein referred to as diverse businesses), as referenced in the FirstEnergy Service Company – General Terms and Conditions: Article - Compliance with Laws, Regulation, and Permits.
Subcontracting activity reports from Tier I suppliers that indicate payments made to such diverse business subcontractors or "Tier II suppliers" are due to Supply Chain’s Strategy & Planning group annually.
FirstEnergy hereby establishes a Tier II Reporting Policy that is intended to enhance, not replace, efforts to increase meaningful sourcing opportunities for small, minority, women-owned, veteran and service disabled veteran owned businesses (herein referred to as diverse businesses). We will look to our large Tier I suppliers to share similar values regarding utilization of small diverse businesses, especially when fulfilling FirstEnergy work requirements.
Reference: Tier II Policy, Reporting Guideline