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Recognizing the leading Buying Entities in minority-owned business inclusion in the North Texas area.

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Published by D/FW MSDC, 2018-07-22 14:10:02

2018 BTTBU(tm) White Paper

Recognizing the leading Buying Entities in minority-owned business inclusion in the North Texas area.

2018


































Meaningful Connections

...Impactful Growth











45th Anniversary
Signature Sponsor

CELEBRATING











































D/FW MSDC.

Dallas/Fort Worth Supplier Minority Development Council












TM
2017 BUY THOSE THAT BUY US
Meaningful Connections…Impactful Growth

The Dallas/Fort Worth Minority Supplier
th
Development Council is celebrating its 45
anniversary. Part of the celebration includes the
recognition of 45 Buying Entity partners
(corporations and public-sector agencies) as BUY
TM
THOSE THAT BUY US Honorees.
But before we take a look at the 45 honorees, let
us take a look back at what was happening 45 years ago. Like all
generations and times, there was good and bad to be experienced in
1973. The nation was involved in the Viet Nam War, the Watergate
scandal, an oil crisis, Native American frustrations at Wounded Knee and
an abortion rights debate. It was also when the first cellular phone call
was made; movies like The Way We Were and American Graffiti were
released; and superhorse, Secretariat, won the Triple Crown. President
Nixon established the Office of Minority Business Enterprise (OMBE) via
a 1969 executive order. And, in 1973, the OMBE took further steps to
increase minority business utilization by developing the first network of
minority business development organizations (now the MBDA) and
funding the National Minority Supplier Development Council to assist in
their efforts.

Locally, the $700 million Dallas-Fort
Worth Airport was dedicated, the
Supreme Court allowed Southwest
Airlines to operate intrastate from Love
Field, Lyndon Baines Johnson died and a

Dallas/Fort Worth Supplier Minority Development Council

white police officer shot and killed 12-year-old Santos Rodriguez,
sparking a protest and riot in downtown Dallas by the Mexican-American
community.

It was during this time of unrest paralleled with extraordinary economic
growth, that nine committed North Texas corporate and community
leaders sought to redefine the economic fabric of the Metroplex. These
original thinkers understood the importance of including all segments of
the population to ensure a strong, vibrant and stable business climate in
the region. They pledged to “actively purchase goods and services from
minority-owned businesses.” They championed the message that
minority business utilization was “MORE THAN the right thing to do. It
was just plain good business sense.”
The leaders formed the Dallas Regional Minority Purchasing Council,
chaired by Lew Zale of Zale Corporation. The first corporate members
included Sun Oil, A.W. Cullum and Co., Vought Aeronautics, Sears and
Roebuck, Texas Power & Light, Southwestern Bell, Republic National
Bank, Texas Instruments, Trailways and Zale Corporation.
Today, 45 years later, the Council continues to be supported by strong
original thinkers committed to the mission of facilitating business
connections and inclusion between corporations and public-sector
agencies and certified minority-owned businesses. The BUY THOSE THAT
TM
BUY US initiative is dedicated to those who understand minority
inclusion and who are committed to carrying on the vision of the original
leaders.

Is Supplier Diversity Still Important?

The simple answer is YES. Studies have shown that diverse suppliers face
numerous challenges in doing business with corporate America, in
particular:
• unconscious bias amongst decision-makers;
• a narrow focus on cost over other value;
• restrictive criteria for suppliers;
• inflexible and non-scalable policies;
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2018 BUY THOSE THAT BUY US White Paper Page 2

Dallas/Fort Worth Supplier Minority Development Council

• a tendency for big business to be more comfortable working
with similarly-sized entities.

Supplier diversity programs were designed to help alleviate these
challenges and the disparity in purchasing from minority businesses.
Buying entities began to understand the advantages of engaging diverse
suppliers. To do so created a more competitive supply chain, cost-saving
measures, multiple channels to procure goods/services, contract
advantages with the federal government and supply chain flexibility. In
addition, supplier diversity demonstrated a buying entity’s commitment
to social responsibility to the community.

What are some of the additional advantages to supplier diversity
programs?

Bottomline Impact
A study performed in 2016 by the
Hackett Group, found “companies
who participate in a long-term
supplier diversity program can
generate a 133% greater ROI than
those firms who look no further
than the suppliers they
traditionally rely upon.” The report further indicated that for every $1
million spent in procurement operating costs, a supplier diversity
program delivered $3.6 million to the organization’s bottom line. The
Hackett Group study also indicated that those with supplier diversity
programs lowered their overall buying operations cost by 20% and
needed fewer people in the procurement department.

Importance to CEOs
When 100 top CEOs around the globe were interviewed by the Harvard
Business Journal (HBJ) about what they thought about diversity and
inclusion, there were several common threads:

• Diversity helps a company increase its touch with an
increasingly diverse customer base.

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Dallas/Fort Worth Supplier Minority Development Council

• Diverse CEOs, who had experienced obstacles, sought to
remove those barriers for others.
• A diverse culture was important, but an inclusive one that
allowed people to bring their authentic selves to the table
was viewed as most desirable.
• The most common obstacle to inclusivity was viewed as the

lack of access to networks and "behind-closed-doors”
conversations.

These same CEOs provided their own list of best practices to impact
workforce and supplier diversity. Their suggestions included:
• To make it personal, both for them and their leadership
• To measure results
• To hold their leadership accountable at all levels
• To recruit diversity
• To educate and train (understanding other cultures doesn’t
just happen)
• To make the Chief Diversity Officer position count

Impacting in the Marketplace
Several other leading CEOs took diversity and inclusion one step further.
They understood that diverse suppliers could provide access,
understanding and impact in a changing consumer base. Organizations
implementing supplier diversity programs were more likely to penetrate
new markets and gain new customers.
However, it wasn’t enough to just employ a diverse-owned company. To
achieve actual economic impact in the community, it was important for
ALL suppliers (diverse and non-diverse) to have substantial inclusion in
their own workforce. These CEOs understood that to have real reach the
consumer base, one had to ensure that suppliers touched the varied
demographics by employing diverse employees. So, more than supplier
diversity, these CEOs were interested in supplier inclusion – a supplier
base and supply chain that reflected diversity throughout the entire
supply chain. True economic impact occurred when not only owners, but
also the employees of diverse companies represented diversity.
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Dallas/Fort Worth Supplier Minority Development Council

Delivering Innovation
Varied backgrounds and life experiences drive fresh ideas and solutions
and can result in less homogenous thinking. Thus, large companies want
to encourage innovative solutions and offerings, and diverse companies
bring fresh ideas to the mix. These smaller and diverse firms often need
to be nimble and innovative to survive.
However, interviews with minority-owned businesses saw some
reluctance to provide innovative solutions to large corporations for fear
of losing their innovation to a bigger supplier or the corporation itself. In
addition, request for proposals of products/services left little room to
deliver innovative winning solutions. The personnel managing a request
were less likely to be interested in innovation than ensuring the
requirements of the request were met. Therefore, the challenge for both
buying entities and diverse suppliers is fostering a safe environment to
exchange creative ideas and equitably finance and bring them to the
market.

Supplier Diversity Does Matter
Supplier diversity is still a very important part of a buying entity’s overall
performance. Supplier diversity professionals and their executive
leaders, who understand the value of an inclusive supplier network, can
provide a competitive advantage in achieving their organization’s goals in
the total market. Recognizing the importance and utilizing diverse
suppliers can mean better overall corporate performance.

TM
What is BUY THOSE THAT BUY US ?
TM
BUY THOSE THAT BUY US ties directly into sharing how supplier
diversity programs are still very important. Much like the ebonics-
sounding name would imply, part of the reason MBE leaders of the
Dallas/Fort Worth Minority Supplier Development Council first created
TM
the BUY THOSE THAT BUY US initiative was to encourage people to
intentionally buy products/services from companies that believed in
minority supplier utilization. In order to know who to buy from, it was
incumbent upon the Council to identify and recognize supplier diversity
initiatives that achieved real results. The Council leadership understood
TM
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Dallas/Fort Worth Supplier Minority Development Council

that advocacy, recognition and sharing on behalf of minority business
inclusion was part of the core of why the organization existed.

TM
The BTTBU initiative was created with three core objectives:
1. To recognize those leading corporations and public-sector
agencies that have developed supplier diversity programs that
deliver real minority business inclusion and utilization
2. To highlight best practices that deliver quantifiable impact
3. To encourage people to buy (for business and personal use) from
those that support minority business inclusion

“We know BUY THOSE THAT BUY US is the right
TM
message for our organization,” said Margo J. Posey,
President of the Dallas/Fort Worth Minority Supplier
Development Council (D/FW MSDC). “We have been
delivering on the message since we first introduced it
in 2007. We are happy the initiative has been copied
now by other organizations nationwide with taglines
like Act Intentionally, Support Those That Support Us,
Margo J. Posey
President/CEO Buy Diverse, etc. It underscores the relevance of the
D/FW MSDC message. But it also champions the work that our
buying entity members do to help create more economic parity in our
communities.”

Looking for a way to spend your dollars? Here is a quick look at the 2018
TM
Honorees and BTTBU purchasing options:

















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Dallas/Fort Worth Supplier Minority Development Council































































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Dallas/Fort Worth Supplier Minority Development Council

Buying Entity Partner honorees are acknowledged at
the D/FW MSDC Annual BTTBU Recognition
TM
Breakfast. Executive-level leaders, supplier diversity
professionals and procurement personnel are invited
to attend, along with the D/FW MSDC Board of
Directors. BTTBU TM logos of the honorees are
displayed on the BTTBU TM Wall of Honor located in
the Council’s Board Room and included on the Council’s website. A
banner of recognition is on display at each of the D/FW MSDC events
throughout the year. A press release is issued to the local media, and
honorees are included in marketing materials associated with the Council
events.

TM
BTTBU Buying Entity Partners with small business solutions are invited
TM
to participate in the BTTBU Business Solutions Pavilion at the D/FW
MSDC ACCESS Business Expo. The Council encourages ACCESS attendees
(MBEs, Council Staff and Buying Entity Partners) to buy business and
personal solutions from these participating companies.

A Council Focused on Continuous Improvement

The Dallas/Fort Worth Minority Supplier Development Council recognizes
the importance of supplier diversity professionals and programs in
bringing about more inclusion and utilization of MBEs. For the past 45
years, the Council has continued to stay focused on delivering quality
programs and activities for its constituents, while advocating for minority
business inclusion. But, the Council also understands that it must
continually look for methods to improve on the process and deliver
results.

In 2015, D/FW MSDC took a strategic step to ensuring that the next few
years would be focused on key imperatives to continuously improve. John
J. Lozano, Council Chairman of the Board of Directors and Director of
Supply Chain at Raytheon, managed the process that examined the
strategic direction of the Council. The result was the development of 14
strategic imperatives that touched the various stakeholder groups of the
Council – buying entities, MBEs, board of directors and staff.

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Dallas/Fort Worth Supplier Minority Development Council

“We recognized we could not do an effective job
of implementing action plans for all 14 strategic
imperatives at once,” said Lozano. “Instead, we
prioritized our focus on five, which this year was
expanded to six. Working groups chaired by our
executive level board members are executing
action plans to address these six imperatives. Our
board is “all in” in supporting and working to
John Lozano
Chairman. D/FW MSDC make this Council work for everyone.”
Director Supply Chain
Raytheon

Chair



















TM
The BUY THOSE THAT BUY US Process
TM
The BUY THOSE THAT BUY US Council initiative impacts Strategic
Imperatives 1 and 4. It focuses on results and the processes that help
achieve results in the supplier diversity field.


TM
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Dallas/Fort Worth Supplier Minority Development Council


TM
The BUY THOSE THAT BUY US process requires each Buying Entity
Partner to complete and submit electronically a scorecard outlining their
minority business spending results. In addition, they are asked to provide
narrative on at least one of three essay questions summarizing a best
practice that helped them achieve their spending results.
An MBE panel composed of former MBE Input Committee chairs and
members of the Board of Directors review the narratives and determine
the “Best-in-Class” practices.
Key factors used in evaluating and scoring best practices were the
following:

1. The Best Practice contained examples of results with certified
MBEs.
2. The Best Practice was viewed as innovative, unique and/or
forward thinking.
3. The Best Practice could be replicated by other organizations.

TM
The D/FW MSDC 2018 BTTBU Best Practices
Each year, the challenge in reviewing best practices is making sure
responses include actual examples of results. In addition, the panel works
hard to include new questions relevant to supplier diversity thought
leadership.

“As the MBE panel reviewed the best practices
submitted, the team chose those that encouraged both
buying entities and MBEs to be better at what they do
in terms of minority inclusion,” said Terri Quinton, Co-
TM
Chair of BTTBU and President of Q2 Marketing Group
LLC. “If we are to see real economic progress in our
communities and less divisiveness in our nation, we
must intentionally find ways to include all segments
Terri Quinton and cultures. And, we must continue to work at doing
MBE Co-Chair of so.”
D/FW MSDC
BTTBU ,
TM
President, The three questions in the survey were:
Q2 Marketing
Group LLC
TM
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Dallas/Fort Worth Supplier Minority Development Council

1. DOWNSTREAM IMPACT – Not every certified MBE has the capacity
to work with large companies. However, expansion of the supply
chain opportunities through prime suppliers offers the opportunity
for more business inclusion and economic growth. Explain how your
company has worked with your prime suppliers (MBE and non-MBE)
to increase their minority business spending and involvement in
supplier diversity goals and objectives. Provide a specific example
with quantifiable results of the impact of your efforts with primes.
2. SIGNIFICANT ACHIEVEMENT IN CREATING MINORITY BUSINESS
INCLUSION. Describe a significant achievement of your organization
related to minority business supplier diversity. Cite the area and/or
issue you addressed and how your accomplishment helped achieve
success in the area. Examples might include a new MBE brought into
your supply chain and/or increased business in new areas going to
existing MBE(s). Provide at least one MBE example positively
impacted by this achievement.
3. ECONOMIC IMPACT – Describe how the efforts of your organization
and your utilization of certified MBEs is impacting our North Texas
community, i.e. job creation/retention, innovative new business
opportunities, increased educational support, economic growth
and/or tax base increases, economic development in a sector of the
community, etc. Provide specific examples.
TM
Each Buying Entity that participated in the BTTBU Best Practices section
was asked to answer one of the three questions. Each Buying Entity
Partner was also required to cite an example of results utilizing the best
practice.





Here are our 2018 Best Practice Honorees:
American Airlines A company gets
AT&T better at the things
BNSF Railway it practices. – Jason
City of Fort Worth Fried
DFW International Airport
Dallas ISD
Fujitsu Network Communications
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Dallas/Fort Worth Supplier Minority Development Council

Lockheed Martin Toyota Motor North America
Methodist Health System UNT System
Oncor Vistra Energy
Raytheon

HONORABLE MENTIONS
Alcon (a division of Novartis)
Parkland Health & Hospital System


American Airlines -- In response to
Questions #2 and #3 on Significant
Achievement and economic impact

In 2017, American increased spend by 20% with small and diverse
businesses. We attribute a good portion of the increase to Corporate Real
Estate projects. American is having a big impact on the North Texas
region not only in Tier I but Tier II opportunities with the building of our
new headquarters campus. The Real Estate team has a written MBE
participation goal within each of our construction contracts. For the
headquarters project, the MBE goal equates to $100 million over the life
of the project. DFW MSDC members represent 20% of American’s total
Tier I minority spend and at least 11 members have been given Tier II
opportunities. This is a significant economic development impact,
including business opportunities and job creation, not only for the
suppliers selected, but also the overall MBE supplier community in North
Texas. As part of the activities to generate opportunities with suppliers,
our Prime General Contractors held informational sessions about bid
opportunities for the new headquarters campus and worked with the
different councils to identify potential suppliers. In early 2017, we
revamped the Supplier Diversity portal allowing suppliers to register,
create a profile and connect with our Commodity Managers. We trained
the Commodity Managers to use our Supplier Diversity portal to look for
suppliers that have reached out to American about business
opportunities. Through all these efforts, American has extended its reach
to communicate new opportunities to all diverse suppliers.

Dallas/Fort Worth Supplier Minority Development Council

In addition, American Airlines has a long-standing contract with an MBE
construction company for peripheral projects for its headquarters
campus, including the Dallas/Fort Worth Reservation Center. As a result
of one of these projects, the MBE recently won the National
Distinguished Building Award from the TEXO Construction Association.

AT&T – in response to Question #2 on Significant
Achievement
For more than ten years, AT&T has utilized a non-diverse
owned company to perform a number of procurement
administrative functions that involved interaction with
thousands of suppliers, data enrichment activities,
diverse supplier validation, collection of diversity subcontracting results,
collection of certificates of insurance and production of financial
assessments.

In 2017, the Supplier Diversity organization initiated a contract change
and selected a diverse supplier to perform administrative services for
AT&T. In addition to the services previously performed, the new
company will collect very robust supplier data and will perform a detailed
Economic Impact Study of AT&T’s diverse spend. This data, along with
additional internal data, process and organizational changes will allow
AT&T to transform Supplier Diversity into a data driven program that
provides deep value to AT&T and measurable economic contribution to
communities throughout the country. The new diverse supplier will be
central to AT&T’s continued transformation of its Supplier Diversity
program into the future.

BNSF Railway – in response to
Question #2 on Significant
Achievement

The information technology (IT) space is saturated with many qualified
suppliers creating a challenge to increase the utilization of minority
owned service providers. BNSF continues to have an effective MBE
partner in this area. Not only do they provide ongoing project support,
they also present solutions for evaluation and potential implementation.
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Dallas/Fort Worth Supplier Minority Development Council

In 2017, we onboarded a new MBE IT supplier to design and implement
an automated solution for one of our repair shops. Smaller projects can
provide an excellent opportunity for a supplier to prove their cost-
effective value to a company. We consider ongoing and increased
utilization of MBE's in the competitive IT space to be a significant
accomplishment.
City of Fort Worth – in response to Question #1
and 2 on Downstream Impact and Significant
Achievement

The City is mindful that not every certified MBE can work with large
companies. Therefore, it established the following two programs
especially for these businesses:

• M/WBE Prime Program
o Solicitations for construction up to $100,000
o Architectural & Engineering and other professional
services up to $150,000
o Primes cannot subcontract more than 49% to non-
M/WBEs
o Allows allocations up to 20% of weighted selection
criteria for M/WBEs on bids
• Joint Venture Program

A joint venture award of $73 million to prime contractor to change out
all the City’s water meters to smart meters included two MBEs whose
participation totaled $10 million. The diversity office and the prime
hosted a series of outreach sessions over a 6-month period targeting
small MBEs. Five MBEs bid on the project and two were selected to joint
venture with the prime.
In addition, the Office of Business Diversity hosted several construction
outreach events and attended D/FW DMSDC’s HARD HAT Construction
Expo in order to find and include MBEs in upcoming bid opportunities.
The result was 14 first-time bidder MBEs were awarded contracts with
the City. The total value of the contracts was $6.6 million. In addition, one

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Dallas/Fort Worth Supplier Minority Development Council

certified MBE was awarded an $800,000 contract to provide millwork,
where there had been no MBE to offer this service in the past.

DFW International Airport – in response to
Question 3 on Economic Impact

DFW International Airport’s Concession
Forum was held two times during 2017 at the Airport and in Fort
Worth to attract more Fort Worth businesses. The forum provided
an opportunity to discuss upcoming concession opportunities,
networking, and meet with the Airport team and Prime
Concessionaires. Businesses were also given the opportunity to
sign up for one-on-one sessions with DFW leaders and learn about
tenant finish- out projects. There were over 480 participants. In
addition, the Airport’s Contracting Opportunity Forum designed to
provide an overview of upcoming solicitations in support of the
Infrastructure and Design Division attracted over 500 consultants,
contractors and suppliers.

Industry Area Annual Goal % Achievement
Goods & Services – SBE 20% 28%
Construction (under $1M) – SBE 20% 25%
Construction – MBE 25% 47%
A & E – MWBE 35% 44%
Construction/ A&E – DBE 28% 29%*
Concessions - ACDBE 34% 37%**
TRIP N/A 48%
*DBE percentage is comprised of only grant-funded projects.
**Overall: 41% achievement is comprised of 37% ACDBE participation and 4% MWBE participation at the owner/equity level.
(The reported numbers reflect dollars paid during the time of report publication.)

Dallas ISD – in response to Question 2 on
Significant Achievements
Background checks have historically been a
barrier to M/WBE contractors competing
for Dallas ISD projects. The district addressed this barrier by
implementing new background check standards in place November 1,
2017. The implementation of new background check standards was the
result of feedback received from the M/WBE Advisory Board. The district
listened to the frustrations expressed by the general construction
community regarding the difficulties experienced when trying to staff
projects with eligible employees. The impact of the limited pool of
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Dallas/Fort Worth Supplier Minority Development Council

qualified M/WBE contractors eligible to work on district projects caused
a lack of competition and capacity building for M/WBE companies.

Dallas ISD Executive Leadership supported the M/WBE Department’s
recommendation to revise background check standards. With input from
Construction Services, Procurement, Human Capital Management and
Legal, the district developed new background check standards.
Additionally, the district will waive background checks for new school
construction, as well as vacant construction sites for existing schools.

There has been an increase in the number of Primes and Subcontractors
competing for District projects since the new standards were
implemented. The feedback from the community has been extremely
positive with more inquiries on how to do business with the District.

Fujitsu Network Communications – in response to
Questions #1 and #2 on Downstream Impact and
Significant Achievement
Fujitsu Network Communications understands that
our customers’ customers consist of consumers; large businesses;
nonprofit organizations; government agencies; and small-to-medium
businesses. For the economic ecosystem to be self-sustaining, all of its
parts need to be healthy. We understand that the utilization of diverse
suppliers across its supply chain contributes to the health of our
customers’ overall economic ecosystem. Our leadership’s commitment
to inclusion is founded on this premise.

We leverage the inclusion of local minority- and women-owned
businesses to extend opportunities to local communities. MWBEs’ direct
access and commitment to talent development ensures that this key
element of economic prosperity is in place.

Most of our alliances with MWBEs are focused on supply chain and
network integration services. We’ve leveraged MWBEs to deliver multi-
OEM technology integration services; RF network migrations to Dense
Wave Division Multiplexing infrastructures; procurement analytics
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engines; fiber to the home technology deployment; GPON; and advanced
supply chain services. These relationships account for over $200 million
as a direct result of MWBE participation.

We also require our suppliers to be inclusive of M/WBEs in the solutions
they provide to us through subcontracting opportunities such as
engineering; infrastructure installation; fiber characterization; and
software development. These subcontracting opportunities enable
MWBEs to develop relationships with these subcontractor companies, in
turn, allowing them to continue to expand their business beyond their
relationships with us.

Lastly, we are also assisting with quality standards development and
training in network commissioning. These higher skilled labor services will
allow local talent to increase their wage capacity in future. We encourage
MWBEs to form mutually beneficial business partnerships, collaborate
and support one another. This has fostered cross-region partnerships and
expansion of opportunities.

While these may be baby steps in our model, we are developing the types
of MWBEs that can be utilized by others. We are helping them grow the
skills, capacity and scalability to mature into large MWBEs with their own
diverse and highly technical workforces.

Lockheed Martin -- in response to
Question #2 Significant Achievement
The Supplier Diversity team at Lockheed Martin is in partnership with
several of its internal functional organizations, such as: Engineering,
Production Operations, Manufacturing, Facilities, etc., collaborating on
ways to strategically meet/exceed small socioeconomic business goals
and initiatives. The team jointly meets frequently with businesses via
internal one-on-one meetings, allowing them to market their
products/services, and we engage in site visits with small businesses
whose core capabilities fit within various areas of Lockheed Martin’s
supply chain. Valuable information is shared with socioeconomic
businesses to ensure they understand Lockheed Martin’s processes and
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Dallas/Fort Worth Supplier Minority Development Council

procedures that can possibly lead to subcontracting opportunities.
Recently, Engineering introduced to the Supplier Diversity team and
Subcontract Management an MBE whose core capabilities fit within an
area of need on one of our major platforms. Subcontracting
opportunities for this platform have historically been awarded to larger
prime contractors. However, in a strategic move, the solicitation for BTP
unique cables was redirected from larger prime contractors and awarded
to the MBE. Subcontracting with this MBE proved to be cost effective for
Lockheed Martin, which resulted in a 22% savings to the program. This
original ‘source directed’ commodity to larger prime contractors has now
been redirected to a qualified MBE. The MBE is also receiving additional
RFQs to compete for opportunities on other platforms.

In addition, to ensure MBEs are strategically positioned to be more
competitive in the aerospace industry, Lockheed Martin executed an
outreach strategy to expand our small business industry base, specifically
in the targeted socio-economic categories: Minority Business Enterprise,
Woman Owned, certified HUBZone, and Service Disabled Veteran. This
strategy was established for each of these focused areas, along with an
initiative to leverage affiliations and associations, target areas with
challenges and opportunities and establish measurements for continued
success indicators.

For greater utilization of MBEs, Lockheed Martin and its principal
partners (Northrop Grumman and BAE Systems) on the F-35 Program
have teamed with D/FW MSDC to facilitate a focused industry day event.
At this focused event, valuable insight on the F-35 Program will be shared
with prospective partners that share the role in protecting our nation.
Information on the program’s procurement process will be discussed as
we explore subcontracting opportunities, both near-term and future
term with attendees.

Methodist Health System – in response
to Question #1 – Downstream Impact


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American Airlines












AT&T









BNSF Railway











City of Fort Worth




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Dallas ISD










DFW International Airport










Fujitsu Network

Communications











Lockheed Martin




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Methodist Health System









Oncor








Raytheon












Toyota





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UNT System










Vistra Energy











Alcon (a division
of Novartis)








Parkland Health &
Hospital System




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Methodist Health System paired an MBE General Contractor with a Prime
Contractor to build two Methodist Hospital facilities. This joint venture
not only led to several additional MBE contractors working as subs on the
project, but directly lead to positioning the MBE General Contractor as
the Prime for the next project on their own.
The Methodist Minority Participation Program for Construction was
created with one overriding goal: “to invest in the community by
providing purpose-driven opportunities for small and Minority
Businesses." The mission of the MBE Prime was to enhance their
healthcare skills through continued education and training while
systematically passing those skills on to other small and MBE companies
serving as subcontractors on the project. The MBE not only enhanced
their own company skillsets in the areas of Project Management and Lean
Construction, they also conducted training sessions with the additional
32 minority companies that participated in the project.

This collaboration process has contributed to enhancing the skillsets of
smaller MBE firms and enabling 32 MBE contractors to become Prime
Contractors in their own right. In addition, both projects were completed
at an average cost of $20 million and a combined average of 46% minority
participation.

Oncor – in response to Questions #2 on Significant
Achievement
Field inspection services for transmission construction
projects have been a manual and cumbersome process
in the utility industry.
Oncor recognized the innovative technology solution of an MBE supplier.
The result was a significant and positive impact
on the process resulting in efficiencies and improvements for
inspections services on the transmission side of the business.
The ability to provide real-time documentation for inspections,
high resolution construction photos, project dashboards, interactive
project maps, automated work order and workforce management,
improvement of standards compliance and installation reporting

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Dallas/Fort Worth Supplier Minority Development Council

are just some of the benefits to Oncor with the utilization of this
company. Since the initial opportunity, additional areas have been
identified across Oncor where the technology and tools of the MBE are
making a positive impact on process improvements and cost savings.

Raytheon – in response to Question #1 and
#3 on Downstream Impact and Economic
Impact
Raytheon is continually seeking innovative solutions that can be utilized
in providing our products/services, as well as streamlining processes in
our organization. We invite MBEs to visit with us at our facilities to learn
more about what we do and how we do it. We have had two significant
success stories from this process.

Recognizing an opportunity to leverage additional small business
utilization, Raytheon utilized their Mentor Protégé agreement for small
business as a strategic supplier for custom test equipment. We
established a relationship for them to partner with one of Raytheon’s
primary OEM sources for COTS Test Equipment. With delivery ratings
consistently maintained at 99%, the supplier is able to significantly
mitigate risk with regard to schedule slippage due to outstanding receipt
of material. Creating this “we win – you win” partnership with a large
OEM provides a platform for the smaller supplier to increase penetration
of Raytheon business and also increase penetration into Raytheon
facilities with an underutilized OEM.

Raytheon establishes aggressive small business goals for inclusion of
MBEs and other diverse businesses (DBs) on an annual basis. The
Raytheon Space & Airborne Systems (SAS) Supplier Diversity Office
actively partners with all functions that impact the sourcing decision
process, including Supply Chain, Facilities and Engineering to ensure
maximum practicable opportunities are created for MBEs. Through early
collaborative engagement with the Strategic Sourcing team, at the front
end of the business, strategic sourcing leads are able to identify potential
opportunities on key pursuits and proposal activities.

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Dallas/Fort Worth Supplier Minority Development Council

For example, Raytheon SAS was able to complete Corporate Wide
Agreements with one of our strategic MBEs to drive upwards of $15M of
spend in FY2017. Additionally, we maintained and grew our relationship
with another MBE and spent $952K with them in FY2017. Overall,
Raytheon SAS spent over $63.3M with MBEs and over $306M with small
and diverse businesses in FY2017.

Toyota Motor North America – in response
to Questions #1 and #2 on Downstream
Impact and Significant Achievement
Toyota works hard to include diverse businesses in our program,
particularly in non-traditional purchasing categories. Toyota recognizes
that economic inclusion extends far beyond the Tier 1 level into the sub-
tiers. For our recent projects we have partnered with our construction
management companies in Plano, Georgetown and York to ensure
inclusion at all levels. We are proud to report that the new headquarters
in Plano, TX, as well as our engineering building in Georgetown, KY have
both exceeded the targets; Plano (~34%) and Georgetown (~27%) also
achieved over 25% in sub-tier spend. Additionally, we were able to
achieve 100% minority spend with our new Research & Development
Supplier Center and Powertrain buildings in Saline, MI. Toyota, for the
first time, sourced the construction project management to minority
companies.

Toyota actively reinforces our values of a diverse supply chain by
communicating downstream this value to our Tier I suppliers. Toyota
provides support and encouragement through initiatives in our core
business, as well as opportunity through networking. These strategic
initiatives are Toyota’s Tier II diversity targets set annually for Tier I’s to
achieve. Toyota’s Tier I Suppliers participate in an annual performance
evaluation process which includes Supplier Diversity as a weighted input
to their overall performance rating. Results in this area can impact a Tier
I Supplier’s ability to be considered for future business or to receive
recognition for exceptional performance in any other category. If
unachieved, Toyota provides education and guidance on increasing MBE

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2018 BUY THOSE THAT BUY US White Paper Page 25

Dallas/Fort Worth Supplier Minority Development Council

spend to those suppliers who have not yet exceeded the targets
established.

In addition, Toyota hosts two annual events bringing MBEs directly to our
Tier I suppliers. Opportunity Exchange, which is an event to introduce
~250 Toyota Tier I Suppliers to diverse companies is in its 29th year.
Attendance has increased by over 350% to over of 1,600 attendees
annually.


UNT System – in response to Questions
#1 and #3 on Downstream Impact and
Economic Impact
UNT System HUB Program recently instituted a process with which the
buying entities within UNT System can delegate the responsibility of
gathering quotes to the UNT System HUB Area. This allows the HUB Area
to solicit quotes exclusively for MBE vendors. This process, which has
been executed more than 320 times in the last Fiscal Year, ensures that
MBEs are afforded a greater opportunity to respond to and win business
with the UNT System. This new process has been well received
throughout the UNT System and has significantly increased the number
of quotes from MBE vendors.

Once an MBE vendor is awarded a bid, the HUB staff follows-up with the
vendor and the UNT System department to ensure quality service was
provided and there was satisfaction on both sides. This extra step has
allowed us to use success stories to encourage other departments to give
it a try. This new process was recently shared with HUB Coordinators
throughout the State at a training workshop. Many other state agencies
and institutions of higher education are interested in replicating this best
practice within their HUB Program.

Another best practice involves prime contractors. They are required to
commit to a specific MBE utilization goal as part of the contractual
agreement for each project. If they deviate from this goal, they are
required to justify that deviation and the process can delay payment for
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Dallas/Fort Worth Supplier Minority Development Council

4 to 6 weeks. Each MBE utilization plan, and the justification required to
deviate from any commitment, is carefully reviewed by the HUB Area
before approval.

We recently established a Mentor/Protégé agreement between a large
furniture vendor and a small North Texas MBE. That partnership has led
to significant awards to the MBE vendor. The UNT System HUB Team
recently partnered with our Facilities staff to pre-qualify furniture
vendors as part of a strategic sourcing initiative. Through our efforts, over
70% of the vendors are MBEs.

Vistra Energy – in response to Question #3 on
Economic Impact

Vistra Energy believes in tracking, measuring and
reporting our spend with MBE's to keep us
accountable and to demonstrate our commitment to the community. As
such, we recently commissioned an individual Economic Impact Study in
addition to leading and participating in the NMSDC Utility Industry Group
Economic Impact Study.
We are proud to announce that the Vistra Energy family of companies
including Luminant and TXU Energy collectively impact the Texas
Minority Business Enterprise (MBE) economy through the creation of 466
jobs resulting in $99, 522,950 of Total Output.

This breaks down into 241 jobs and $40,239,795 of Total Output through
our minority male-owned businesses and 225 jobs and $59,238,155 Total
Output through our businesses owned by women of color.

We are very proud of our direct impact on the Texas economy through
our MBE Suppliers and look forward to continuing to increase both job
creation and dollars spent through them.

HONORABLE MENTIONS

Alcon (a division of Novartis) in response Question #1 on Downstream
Impact -- Each Novartis procurement team has a supplier diversity
champion to help drive 1st and 2nd tier MBE opportunity. Novartis
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Dallas/Fort Worth Supplier Minority Development Council

invited Managed Service Providers (MSP’s) to the annual supplier
diversity on-campus events to meet with MBE’s for inclusion in our supply
chain for 2nd tier opportunity. The Alcon division used 14 MBE’s with 5%
of total contingent labor spend.

We had two success stories as well. One MBE supplier was brought on
board to be a supplier of comprehensive Environment, Health and Safety
Services (EHS) two years ago through the procurement process, as well
as supplier diversity networking efforts. Prior to that, the firm only
supplied services in Quality Assurance. Alcon had a need to conduct
global audits of their EHS program. The MBE competed against larger
firms and won. They completed the projects six months ahead of
schedule and significantly under-budget and our Corporate Head won an
award for utilizing this firm.

Success story 2: Novartis selected an M/WBE for supplier diversity online
training. Once they became a preferred supplier, their innovation and
expertise were promoted within HR and D&I teams, which resulted in
their RFP inclusion. They were then awarded the new online sexual
harassment training for all US Novartis employees. The training program
was innovative in the delivery method and content and featured an easy
to use intuitive navigation and an interactive style, resulting in a high
level of workplace compliance and employee development.

Parkland Health & Hospital System – in response to Question #2 on
Significant Achievement – Parkland has a contract for Med-Surg
distribution that came up for renewal. There are 3 major suppliers in the
marketplace capable of delivering on the volume required by Parkland to
meet our patients’ needs. In November 2017, Parkland, in coordination
with Parkland’s group purchasing organization, released a solicitation for
medical surgical distribution services to these distribution suppliers.
While subcontracting opportunities exist on the manufacturing portion
of the RFP, there was limited opportunity on the distribution services. To
increase the inclusion and participation of M/WBEs on the distribution
services, Parkland’s Supplier Diversity in collaboration with D/FW MSDC

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Dallas/Fort Worth Supplier Minority Development Council

organized a reverse expo Med-Surg Distribution vendor fair. The event
was hosted on 11/9/2017 at DFWMSDC facility and the outreach activity
to create awareness was coordinated by Parkland using D/FW MSDC
resources. This reverse expo resulted in 2 MBEs providing outsourced
supply chain services, logistics and Med-Surg disposables. Another
exhibitor submitted a plan to utilize an MBE to provide administrative
services. These pending awards represent up to 13% of the $120 million
overall contract.
TM
The D/FW MSDC 2018 BTTBU CLASS OF 45
“Total commitment is alignment of one’s motives,
resources, priorities and goals to fulfill a specific
mission.”
TM
The BUY THOSE THAT BUY US initiative also honors
all those Buying Entity Partners that shared their
annual minority spend results. The information is
confidential and only presented here in aggregate
form.

TM
The BTTBU Class of 2018 composed of 45 Buying Entity Partners
reported an aggregate spend of $4,523,953,296 with certified
NMSDC and D/FW MSDC MBEs.

Alcon (a division of Novartis) Dallas ISD
American Airlines DART
Arlington ISD DexYP, LLC
AT&T DFW International Airport
Atmos Energy Ericsson Inc.
Austin Commercial, LP Federal Reserve Bank
BNSF Railway Company Fluor
Capgemini US LLC Fujitsu Network
City of Dallas Communications
City of Fort Worth HEB Grocery Company LP
Comerica Hensel Phelps
CVS Health JCPenney
Dallas County JPS Health Network
Dallas County Community Lockheed Martin Aeronautics
College District Methodist Health System
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Dallas/Fort Worth Supplier Minority Development Council

Nokia Texas Rangers
ONCOR Toyota Motor North America
Parkland Health & Hospital Trinity River Vision Authority
PepsiCo Inc. Turner Construction
Prestige Maintenance USA UNT System
Raytheon Vendor Resource Management
Shell Oil Company Vistra Energy
Southwest Airlines Company Vizient, Inc.
Texas Instruments, Inc.


TM
The D/FW MSDC 2018 BTTBU Aggregate Profile
TM
The 2018 BTTBU Aggregate Profile is based upon submissions by buying
entities of the BTTBU TM numerical results. We salute those who
responded to this portion of the survey. It allows us to look at trends
related to year-over-year spending with MBEs both in the Metroplex and
nationally. Results for 2018 remained relatively flat compared to
previous years and an increase in Tier 2 spend.


2018 2017 2016 Description
Direct Spend with
$ 4,523,953,296 $4,393,021,138 $3,156,641,299 D/FW MSDC MBEs
Direct Spend with
$ 10,531,279,083 $11,443,824,427 $11,222,249,332 NMSDC MBEs
Indirect Spend with
$ 1,448,166,028 $1,219,993,630 $329,552,897 certified MBEs
Formal Supplier Diversity Program with Key Success Elements
Designated Supplier
97% 97% 97% Diversity Personnel
Active C-Level
83% 94% 82% Involvement
Senior Executive pay
42% 45% 47% impacted by results




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2018 BUY THOSE THAT BUY US White Paper Page 30

Dallas/Fort Worth Supplier Minority Development Council

2018 2017 2016 Description
Written numeric
69% 71% 68% goals in contracts
Written goals for
78% 81% 82% prime suppliers
Written supplier
92% 97% 97% diversity goals
Written goals for
86% 87% 91% buyers
Supplier Diversity is
part of business
92% 94% 94% culture
2017 2016 Description
MBE Development
Provide feedback at
83% 94% 88% least once a year
Provide mentoring
86% 87% 88% and/or training
Accept teaming
and/or joint venture
or unbundle
97% 77% 85% contracts

There were declines in nearly every category. This could be attributed to
inclusion of more buying entities that have less experience with supplier
diversity and/or tracking results. The major upswing in this area is related
to unbundling, teaming and joint ventures. There appears to be a more
acceptable way to develop and grow MBE firms.

However, if what gets measured, gets done, then supplier diversity
programs have some areas for improvement. These include tying results
to pay and ensuring written goals for suppliers, primes, buyers and in
contracts.
Outlined in the tables above is the aggregate quantitative profile of the 2018
TM
BTTBU 45. (Note: 2018 results are based upon 2017 numbers; 2017 results are
based upon 2016 numbers and 2016 results are based upon 2015 numbers.)



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2018 BUY THOSE THAT BUY US White Paper Page 31

Dallas/Fort Worth Supplier Minority Development Council






























































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Dallas/Fort Worth Supplier Minority Development Council









TM
BTTBU BUILDING CAPACITY FUND

“Growing the capacity of certified minority
business suppliers is a core initiative of the
Dallas/Fort Worth Minority Supplier Development
Council, said Heather Herndon-Wright, Co-Chair of
TM
the BTTBU initiative and Senior Director Supplier
Diversity with Vistra Energy. “We not only want to
help grow firms, but we want them to have the Heather Herndon-
Wright
economic well-being to use products produced by Co-Chair of BTTBU
TM
TM
buying entities – BUY THOSE THAT BUY US !”
and Director of
Supplier Diversity,
In 2009, the Council developed a fund to assist
Vistra Energy
deserving MBEs in the growth and development of
their business. At the September Quarterly Buyers Appreciation
Luncheon each year, awards of up to $5,000 are granted to MBEs. To
date, the fund has awarded over $121,850 in cash and over $25,000 “in-
kind” training to D/FW MSDC MBEs to grow their businesses. These
awards have been used to obtain licenses in an industry, OSHA training,
purchase key pieces of equipment and more.
To qualify as a recipient, the company must be a D/FW MSDC certified
MBE who has been certified by the Council for at least two years. The
recipient must identify a critical need for their business that, if met, will
support the growth and development of the business. The cash award
may partially or fully fund this need.
TM
Contributions may be made to the BTTBU Building Capacity Fund at any
time throughout the year by Buying Entity Partners and MBEs. We
welcome and encourage your contribution. Checks may be made payable

to D/FW MSDC in the name of the BTTBU TM Building Capacity Fund.
For more information visit www.dfwmsdc.com

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Dallas/Fort Worth Supplier Minority Development Council










About the Dallas/Fort Worth
Minority Supplier Development Council

























The Dallas/Fort Worth Minority Supplier Development Council,
established in 1973, is a non-profit business organization that certifies,
connects and develops minority-owned business and is a sourcing
resource for corporate and public sector buying entities. The mission of
the Council is to encourage and facilitate procurement and business
opportunities between Buying Entity Partners (corporations and public-
sector agencies) and Certified Minority Business Enterprises (MBEs).

The Dallas/Fort Worth Minority Supplier Development Council prescript
has not wavered in our 45-year history. We certify, connect and develop
minority businesses; we advocate for supply-chain inclusion and
increased opportunities for certified minority businesses. D/FW MSDC
Buying Entity Partners are committed to minority business inclusion and
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2018 BUY THOSE THAT BUY US White Paper Page 34

Dallas/Fort Worth Supplier Minority Development Council

utilization as demonstrated by more than $22.9 billion in direct spend
with minority-owned businesses. Equally important is the reported spend
of over $24 million dollars between D/FW MSDC certified minority
suppliers.

We operate in an economic climate of contradictions, uncertainty, hope
and change. The Council remains steadfast to our mission, in the growth
of minority business revenue in North Texas, in building minority business
capacity and in recognizing our Buying Entity Partners that are leaders in
this space.

Connecting buyers to suppliers and opportunities to minority-solution
providers is core to minority businesses increasing capacity and building
strong, vibrant economic communities that benefit everyone.

In 2011 and 2015, the Dallas/Fort Worth Minority Supplier Development
Council was recognized by the National Minority Supplier Development
Council (NMSDC) as the Council of the Year. This selection, from the 23
U.S. Councils and 6 International Councils, was based upon achieving real
minority business revenue results, serving the needs of our stakeholders
and influence in the communities we serve.

For more information visit www.dfwmsdc.com


\\

This document and its content are published by the Dallas/Fort Worth Minority
Supplier Diversity Council. All rights reserved. © Dallas/Fort Worth Minority
Supplier Development Council, 2017. Any redistribution or reproduction of part
or all of the contents in any form are prohibited without written permission from
D/FW MSDC.







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Dallas/Fort Worth Supplier Minority Development Council






























































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2018 BUY THOSE THAT BUY US White Paper Page 36

CELEBRATING











































D/FW MSDC.

Gear Up for 2019!


2019 BUY THOSE THAT BUY US TM
“Leadership is about impact...
impact involves getting results...”
--Robin S. Sharma
















WHEN: Best Practice responses (Part 1) are due the
Council the first quarter of each year and are based
upon prior year’s results. Scorecard data (Part 2) are
due in March of each year.

















Meaningful Connections
...Impactful Growth


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