Tier II Reporting

Policy Statement

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 $750,000 (or $1,500,000 for construction) to adopt a subcontracting plan that addresses subcontracting with small business, minority-owned 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 spend results from Tier I suppliers that indicate payments made to diverse business subcontractors or "Tier II suppliers" are to be reported monthly in Supply Chain’s PowerAdvocate system. 

FirstEnergy hereby establishes a Tier II Reporting Policy that is intended to enhance, not replace, efforts to increase meaningful sourcing opportunities for 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