Doing Business with Gov’t. Contractors FirstEnergy Corp. July 22, 2004 Doing Business with Gov’t. Contractors FirstEnergy Corp. July 22, 2004

F FirstEnergy’s Diversity Sourcing Program Powered by Diversity F IRST E NERGY C orp. A registered public utility holding company 5th Largest Investor-Owned Electric Utility 4.4 million retail customers 14,700 miles of transmission lines

F FirstEnergy’s Diversity Sourcing Program Powered by Diversity FirstEnergy’s Diversity Sourcing Program

F Powered by Diversity Supplier Diversity at F IRST E NERGY n Key drivers include: –Provides opportunities in a competitive environment –Service, quality and competitive prices continue to drive the program –compliance with federal, state, and advocacy group requirements n Eligibility: –Small Business –Small Disadvantaged Business –Woman-Owned Business –HUBZone Business Concern –Veteran Owned Small Business –Service Disabled Veteran-Owned Small Business

F FirstEnergy’s Diversity Sourcing Program Powered by Diversity FirstEnergy’s Supplier Diversity Program Components are: n Annual Sourcing Opportunity Commitments n A Commitment to Data Accuracy n Outreach Activities n Communications (Internal & External) n Training

F FirstEnergy’s Diversity Sourcing Program Powered by Diversity FirstEnergy’s Diversity Sourcing Program Outreach, Communications & Training n Demonstrating FirstEnergy’s Outreach Leadership: –National Minority Supplier Diversity Council (NMSDC) –MSDC of PA-NJ-DE –Northern Ohio Minority Business Council (NOMBC) –Edison Electric Institute Minority Committee (EEI) –NJ Board of Public Utilities SDDC Council –Women’s Business Enterprise National Council n Communicating through: – –FE Web-site & Supply Chain Intra-Net –Employee Update Newsletter –How to do Business brochure

F FirstEnergy’s Diversity Sourcing Program Powered by Diversity What FirstEnergy Buys: n Corporate Services –IT, Telecommunications, Facilities, Logistics, Office Supplies, Office Equipment, Consulting Services, Staffing n Energy Delivery –Distribution hardware, transformers, engineering, fleet services, fuels, meters, high voltage line construction, street lighting, vegetation mgmt., wire & cable n Fossil Generation –Boiler parts, coal handling, motors, pumps, chemicals, gases n Nuclear Generation n Supply Chain Support Services –Procurement Card, Transportation, Travel, Diversity, Investment Recovery

F FirstEnergy’s Diversity Sourcing Program Powered by Diversity How F IRST E NERGY buys: n Variety of methods –RFP –RFx –Straight Bid –Reverse Auction –Negotiated Agreements n Moved from traditional purchasing structure to a Strategic Sourcing environment n Supplier Diversity - extension of corporate commitment at every level of the company

F FirstEnergy’s Diversity Sourcing Program Powered by Diversity How to register as a supplier: n Vendor –Complete the FE Supplier Network Supplier Registration form –Identify your products or services - at least two sets of documents/brochures –Certifications n FirstEnergy –Access database –copy may go to Buyer, Requisitioner, or file n Opportunity

F FirstEnergy’s Diversity Sourcing Program Powered by Diversity Our wish list: n Know our business - more importantly know yours n Be patient - but diligent n Develop relationships and ask for help n Expect to have to earn our business n Be e-enabled n Be professional - you typically have one opportunity n Know your bottom line n Be prepared to WIN n Ask for the sale!