Southern Maryland Electric Cooperative
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Supplier Diversity

Supplier Diversity Program

Southern Maryland Electric Cooperative, Inc. (SMECO) has a Supplier Diversity Program to:
  • Achieve the goal stated in the July 15, 2009, Memorandum of Understanding (MOU) with the Maryland Public
    Service Commission (PSC):

“to voluntarily pursue a target goal of 25% of eligible procurements from minority-, women-, and service disabled veteran-owned businesses, and not-for-profit entities organized to promote the interests of physically or mentally disabled individuals.”

In July 2014, SMECO reported 4.3% for calendar year 2013.

  • Comply with Federal Acquisition Regulations (FAR)

In 2009, SMECO acquired U.S. Navy electric utility facilities in a utility privatization contract. FAR requires a Small Business Subcontracting Plan to be administered. Currently, SMECO is exceeding its goals.

SMECO procured nearly $14 million of goods and services from small and diverse suppliers in 2013.

SMECO has partnered with CVM Solutions, Inc., to provide an online supplier management service. This partnership is providing the Supplier Diversity Program with accurate and validated supplier data for the requirements of Federal Small Business Subcontracting Plan Reporting and the Supplier Diversity Annual Report. Functions and capabilities include:

  • Suppliers having access to update corporate information, points of contact, etc., and attaching informational brochures;
  • SMECO being able to extract a Supplemental Bidders’ List from registered suppliers;
  • SMECO being able to inform registered suppliers of upcoming procurement opportunities;
  • Matchmaking, via e-mail, for large prime contractors or other utilities to connect to SMECO’s registered suppliers, including small and diverse suppliers.

In addition, if you exceed $550,000 in a calendar year, SMECO or CVM Solutions will contact you to begin quarterly Tier 2 Reporting (Use of Subcontractors) via an online website. This is a new requirement being enforced through all procurement contracts and purchase orders.

A Partner within the Business Community

SMECO is proud to serve as community partner to a variety of statewide and regional organizations, such as:

  • Maryland Utility Forum on Supplier Diversity;
  • Local and regional Chambers of Commerce;
  • Supporter of the Tri-County Council for Southern Maryland Minority Business Opportunities Task Force (MBOT) and the developed Smart Business Tool and Directory smartbiztool.tccsmd.org.
  • Member of the Women Presidents’ Education Organization, a regional chapter of Women’s Business Enterprise National Council, which certifies women-owned businesses.

Certification

SMECO encourages all small and diverse suppliers to obtain the eligible federal and state recognized supplier certifications. There are many organizations that may be able to assist a small and diverse business with its business certification. These include:

In addition, the local chambers of commerce, Maryland Procurement & Technical Assistance Program (www.mdptap.org), and other business alliances can assist in identifying appropriate third parties who can certify a supplier as an eligible small or diverse business.

SMECO’s Expectations of the Supplier

  • Register as a SMECO supplier;
  • Get certified as a small and/or diverse supplier;
  • Get acquainted with the North American Industry Classification System (NAICS);
  • Be competitive;
  • Take advantage of teaming, partnering, and subcontracting opportunities;
  • Join and access available organizations and resources;
  • Provide feedback to SMECO to develop a positive exchange of ideas or information to solve current issues and introduce new initiatives.

Under SMECO’s MOU with the PSC, Certain Procurements are exempt:

  • Standard Offer Service Procurement;
  • Power supply related procurements (power purchases, transmission fees, etc.);
  • Utilities (electricity, telecommunications, water, sewer, etc.);
  • Compensation to directors, employees, etc. (payroll, benefits, director fees, etc.);
  • All tax payments;
  • Capital Credits;
  • Permits;
  • Freight charges and business travel expenses;
  • Claims;
  • Philanthropic contributions.