Con Edison of New York and Orange and Rockland Utilities continued to support the communities we serve by creating opportunities for minority- and women-owned businesses. In 2014, we bought more than $277 million in goods and services from minority- and women-owned businesses, exceeding our annual goals. Including fuel, expenditures with minority- and women- owned businesses totaled more than $286 million.
Supplier Diversity expenditures increased 12 percent for corporate materials and 18 percent for environmental- and professional-services contracts in 2014. To help achieve these results, the Supplier Diversity team worked closely with the utilities' supply chain procurement specialists to increase diversity among our vendors.
We increased by 90 percent the number of new vendors certified as minority- or women-owned. The companies we choose compete on the basis of cost, quality, and innovation. Two of these 55 new vendors, the Urban Group and Software Guidance & Assistance (SGA), won significantly large contracts. Through our $11-million, two-year staffing contract with SGA, we expect to save more than $1 million.
Other notable contracts we awarded to minority- and women-owned businesses in 2014 were:
- $18 million in contracts to a minority-owned business for information-technology staffing
- $8.4 million in contracts to a woman-owned business for truck purchases.
- $6.6 million contract to a woman-owned business for computer- and printer-maintenance services
- $4.1 million in contracts to a minority-owned business for roofing repair work
- $3.9 million in contracts to a minority-owned business for industrial maintenance, repair, and operations work.
- $1 million contract to a minority-owned business for civil and mechanical construction
We continued our support of diverse suppliers in nontraditional areas. We doubled our business with outside minority-owned pension-fund managers in 2014. Two minority-owned firms manage $1 billion of U.S. small-cap and U.S. large-cap equity funds for Con Edison.
For nearly 30 years, we've bought part of our corporate insurance program from two minority-owned brokers. In 2014, we retained one broker to handle our business–travel and employee-crime insurance, and another to handle our liability and property insurance.
DEVELOPING DIVERSE SUPPLIERS
To enhance our commitment to operational excellence, we work to recruit and develop opportunities for competitive minority- and women-owned businesses that can enhance our company's safety, reliability, sustainability, and resiliency.
We continued to partner with local community stakeholder groups as well as local and national business trade associations, including:
- New York and New Jersey Minority Supplier Development Council
- Women Presidents' Educational Organization
- New York City Department of Small Business Services' Corporate Alliance Program/Columbia University Construction Mentorship Program
- Regional Alliance Clearinghouse for Small Contractors
- Goldman Sachs 10,000 Small Businesses program and Procurement Technical Assistance Centers affiliated with LaGuardia College
- South Bronx Overall Economic Development Corporation
- Rockland County, New York
In 2014, we hosted and participated in outreach activities throughout our service territory. In addition to attending 60 external outreach events with stakeholder groups from the minority- and women-owned business community, we hosted 10 forums for our existing pool of active diverse vendors. At our forums, our own subject-matter experts discussed the importance of safety, ethics, quality performance, and sustainable business practices. We also hosted matchmakers for our majority construction primes and diverse suppliers, and cohosted an energy-efficiency expo.
To promote energy efficiency, the Supplier Diversity team works closely with the company's Energy Efficiency and Public Affairs groups. We encourage large energy customers to take advantage of incentives to upgrade their equipment and introduce these customers to leading minority- and women-owned businesses that provide energy-efficiency services. This effort has increased opportunities for diverse vendors (both large technology providers and small installers) and created jobs for community residents.
LEADERSHIP AND RECOGNITION
Con Edison continues to lead the utility industry in supplier diversity. Members of our Supplier Diversity team took on leadership roles locally, as vice president of the New Jersey Board of Public Utilities' Supplier Diversity Development Council, and nationally, as co-chair of the Edison Electric Institute's Supplier Diversity Industry Trends Group.
In recognition of our work on supplier diversity, the company received the following awards in 2014:
- Black Enterprise magazine's 40 Best Companies for Diversity
- National Minority Business Council's Supplier Diversity Award
- Women Presidents' Educational Organization Corporate Partners Award