2019 BUY THOSE THAT BUY US(TM) WHITE PAPER

Dallas/Fort Worth Supplier Minority Development Council

2019 BUY THOSE THAT BUY USTM

Meaningful Connections…Impactful Growth
The Buy Those That Buy UsTM initiative of the
Dallas/Fort Worth Minority Supplier
Development Council continues to expand the
dialogue and champion the utilization of
certified minority-owned businesses in the
supply chain of corporate America. The
commonsense name suggests that each of us
should spend our dollars tied to organizations

who value and encourage minority inclusion. Why not make a decision to
buy goods and products from those who believe what you believe? It is
done every day when we make choices to help preserve our planet –
paper straws instead of plastic, re-using towels in a hotel, recycling parts,
paper and plastics, reducing our carbon footprint through carpooling,
ridesharing or hybrid vehicles. Buy Those That Buy UsTM promotes
emphasis on spending that can help enhance our supply chain, increase
business performance, multiply minority job opportunities and build
economic wealth in diverse communities around our country.

Supplier Diversity Today

In a world where we are always looking for the next great thing, it is no
wonder people are asking “what’s next?” when it comes to Supplier
Diversity. Some programs have been in existence for more than 40 years
and the underlying question is what results and impact have the
programs had upon our businesses, communities, economy and
minority-owned business growth and sustainability?

Dallas/Fort Worth Supplier Minority Development Council

According to a 2018 study conducted by CVM Solutions, there are some
key positives we can highlight when talking about supplier diversity
programs. Here are a few of their findings:

*From CVM Solutions 2018 State of Supplier Diversity – Supplier Diversity

Programs

• 72 percent of respondents cite corporate social responsibility as
a key driver for their supplier diversity programs, followed by
customer requirements and alignment with corporate culture
and workforce

• The larger the company and the more mature the supplier
diversity program, the more likely the company was to measure
Tier 2 spend (62 percent)

• Diverse suppliers were primarily found through certification
agencies (72 percent) and other diverse suppliers (54 percent)

When asked “How effective would you say your supplier diversity
program is?” three-quarters of the respondents were satisfied with the
effectiveness of their supplier diversity program.

But the underlying question is, how do we define “effective?” While this
white paper “is designed to stimulate “The Conversation,” it also

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highlights several best practices that are delivering real minority business
inclusion results.

What Is An Effective Program?

Have we lived up to our ideals and the goals we first established related
to supplier diversity programs? Have we infused the supply chain with
capable and sustainable minority-owned businesses that can help
business performance now and into the future? Have we captured and
highlighted the best metrics to tell the story?

The answer is sometimes. We have experienced glimmers of true impact
when a minority-owned business is able to hire new people after winning
a sizable multi-year contract. A business is able to allocate dollars for
training existing personnel on new technologies that will enable the
company to better address future opportunities. A supplier provides a
cost-effective manner to tackle some portion of the supply chain needs
that reduces costs, adds innovation or simplifies processes. A minority-
owned business helps its corporate partner tackle a whole new market
segment with culturally related products/services.

Suppler diversity programs have helped create several multi-million-
dollar minority-owned companies, a Fortune 500 minority-owned
company and a $10 billion+ company. The underlying common factors in
each of these success equations is the ability of the company to scale,
maintain a sizeable multi-year contract and expand their footprint (inside
or outside their original industry). More importantly, the Buying Entity
continued to believe, support and utilize these successful companies as
they navigated the growing pains of scaling and growing to size.

Studies show that because of programs like supplier diversity initiatives
and affirmative action, minority-owned businesses saw tremendous
growth from 1960s to the 1990s. These programs created important
access points for minority entrepreneurs, allowing unprecedented
business opportunities in a diverse set of industries. The public sector was
the impetus for minority businesses changing their business strategies
toward industry diversification, scaling and growth and represented a
sizable portion of the revenue for companies earning more than $1
million annually. When a number of private companies followed the
public sector’s lead, minority-owned companies were able to diversify

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their portfolio even further, building stronger and more sustainable
firms.

Data compiled by The Business Journals in 2017 showed there are more
than 11 million minority-owned businesses in operation nationwide,
nearly double the number of 10 years ago. These businesses employed
more than 6.3 million people and generated more than $1.8 trillion in
revenue annually. Plus, in the spirit of BUY THOSE THAT BUY USTM, 85%
of minority business owners surveyed said wireless services and
applications like cloud services were critical to operational success and
growth, compared to 68% of non-minority business owners.

Diverse small businesses are the fastest growing segment of our
economy. Each year, there are more and more startups being created.
Where do they fit in the marketplace? Are they ready to do business with
corporate America or the government? Is there proper financing to
create growth and sustainability? Will GenZs (Millennials) actually wait to
go through the supplier diversity process or strike out on their own to
attack the marketplace using their familiarity with technology? Will the
next generation even seek business through the supply chain process?
What about those services not sourced through the supply chain? Will
there be more or less demand on supplier diversity professionals to
contribute to supply chain successes?

These are all questions worth examining as supplier diversity programs
position themselves within their organizations and externally to continue
to bring value and return on investment to the stakeholders involved.

A Look at Continuous Improvement

Despite the resounding commitment and perceived effectiveness of
supplier diversity programs, especially mature programs, a 2017 Hackett
Group study suggests successful supplier diversity programs include the
following:

• Develop supplier partnerships
• Mentor local suppliers
• Collaborate with suppliers on product innovation
• Share their experiences with other companies
• Use supplier diversity as a reputation-builder to help increase

market share and retain talent

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• Rely on social media to develop customer and brand awareness
• Actively educate internal stakeholders on the value of supplier

diversity
• Interact with local communities of suppliers and consumers to

better understand the market, establish relationships and share
supplier diversity goals
• Partner with corporate diversity groups, which manage
workforce diversity
• Working with third parties that can help companies connect with
diverse suppliers

A couple of examples can be taken a step further.

• Enabling Innovation – Collaboration is a key element in the
process of innovation. Close proximity between a supplier and
buyer is especially important in creating trust and high-
performing teams. Even more telling for one corporation was
when its operational footprint was near high concentrations of
people who could benefit from their products and services. This
increased the percentage of small and diverse suppliers and the
likelihood that collaborative innovation could occur.

• Community Impact -- Instead of simply assuming a company that
is owned by an underrepresented individual or group will
positively impact an underrepresented community, go a step
further and confirm that impact by adopting location-based
indicators, such as jobs supported by state and economic
contribution. These indicators can be measured by working with
third-party economic impact suppliers. By systematically
measuring these indicators, a company can prioritize contracting
resources and maximize the impact of their supplier inclusion
programs on underserved communities.

Continuous improvement requires us to ask:

1. How do we measure or determine effectiveness or success in
today’s environment? Is it just how much is spent, or can we
really capture the impact upon business performance and
communities?

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2. What’s next? What approach or emphasis should we be
addressing? Are global programs the next step or must we get
better in the U.S. first?

These questions can direct our emphasis with supplier diversity programs
and minority-business inclusion as they evolve into the future. Whatever
the answers are, collaboration, emphasis and engagement between
constituency groups will make the answers easier to discern.

What is BUY THOSE THAT BUY USTM?

BUY THOSE THAT BUY USTM ties directly into collaboration and sharing
best supplier diversity and minority business inclusion initiatives by
highlighting best practices that deliver real results. MBE leaders of the
Dallas/Fort Worth Minority Supplier Development Council first created
the BUY THOSE THAT BUY USTM initiative and presented it to the Board of
Directors for approval in 2007. The initiative was designed to encourage
people to intentionally buy products/services from companies that
believed in minority business inclusion. The Council leadership
understood that advocacy, recognition and sharing on behalf of minority
business inclusion was part of the core of core of the organization’s
existence.

The BTTBUTM 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 were certain 12 years ago that BUY THOSE THAT
BUY USTM was the right message,” said Margo J. Posey,
President and CEO of D/FW Minority Supplier
Development Council. “The message is even more
relevant today as we encourage people to use their
spending power to support businesses focused on full

inclusion of minority-owned businesses in our
Margo J. Posey, economic landscape.”

President/CEO

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BTTBU Recognition

• Buying Entity Partner honorees are acknowledged at the D/FW
MSDC Annual BTTBUTM Recognition Breakfast. Executive-level
leaders, supplier diversity professionals and procurement
personnel are invited to attend, along with the D/FW MSDC
Board of Directors.

• BTTBUTM logos of the honorees are displayed on the BTTBUTM
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.

• Honorees are included in marketing materials associated with
the Council events.

• BTTBUTM Buying Entity Partners with small business solutions are
invited to participate in the BTTBUTM 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.

Tied to Business Markets and Economic Impact
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 particular, BTTBUTM works for Buying
Entity partners looking to impact their business
performance and ties to the community
marketplace.

“Vistra Energy is especially excited about the Heather Herndon-
message of this initiative,” said Heather Herndon- Wright
Wright, co-chair of BTTBUTM and Director of Co-Chair of BTTBUTM
Supplier Diversity at Vistra Energy. “We believe in and Director of
the power of minority business inclusion to help Supplier Diversity,
make our communities better, and we encourage Vistra Energy

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businesses and consumers to vote with their dollars when making buying
decisions. We certainly do.”

The BUY THOSE THAT BUY USTM Process

The BUY THOSE THAT BUY USTM Council initiative focuses on results and
the processes that help achieve results in the minority business inclusion
arena.

The BUY THOSE THAT BUY USTM 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 MBE
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 quantifiable results
with certified D/FW MSDC MBEs.

2. The Best Practice was viewed as innovative, unique and/or
forward thinking.

3. The Best Practice could be replicated by other organizations.

The D/FW MSDC 2019 BTTBUTM 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.

Terri Quinton “If we are to see real economic progress in our
Co-Chair of communities and less divisiveness in our nation, we
BTTBUTM and CEO, must intentionally find ways to include all segments
Q2 Marketing and cultures,” said Terri Quinton, BTTBUTM co-chair
Group and CEO of Q2 Marketing Group and ADP-LLC. “We
must continue to work at improving our communities
through strong minority business inclusion efforts.”

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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. The three questions in the
survey were:

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.

Each Buying Entity that participated in the BTTBUTM 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.

“We are what we repeatedly do. Excellence, then, is not an act, but a
habit.” ―Aristotle

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2019 Best Practice Honorees

• AT&T
• Austin Commercial
• City of Dallas
• City of Fort Worth
• Dallas Area Rapid Transit (DART)
• Methodist Health System
• North Texas Tollway Authority (NTTA)
• Raytheon
• Toyota Motor North America
• UNT System
• Vistra Energy

HONORABLE MENTIONS
• JCPenney
• UT Southwestern Medical Center

AT&T

RESPONSE TO QUESTION 1 --
DOWNSTREAM IMPACT

In 2018, AT&T evaluated its Prime Supplier Program to improve Tier-2
spend. AT&T Supplier Diversity advocates conducted an assessment of
prime suppliers and developed a strategy to assist with improving Tier-2
performance.

This included conducting one-on-one meetings to review and assist the
prime company with submitting their required annual plan. Frequent
communication with the Prime allowed the team to position and
facilitate introductory meetings with diverse suppliers for potential
opportunities. In addition to evaluating Prime suppliers, AT&T Supplier
Diversity determined it was necessary to conduct refresher training
sessions with Sourcing Managers.

Sourcing Managers are an asset to the program by promoting the value
of submitting an annual plan and reporting spend during the contract
phase. By assisting AT&T Supplier Diversity with encouraging the Primes
to fully participate, the Sourcing Managers helped drive increased Tier-2
spend.

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This collaborative effort with the Supplier Diversity team, Sourcing
Managers and Prime Suppliers resulted in an increase of more than $600
Million in reported Tier-2 spend in 2018.

AUSTIN COMMERCIAL

RESPONSE TO QUESTION 1 -- DOWNSTREAM IMPACT

Austin Industries has incorporated a proactive mindset
when it comes to Multi-Tier inclusion. Austin has
implemented strong and specific bid package contract
language to its prime contractors that aids in maximizing inclusion at the
sub-tier level(s). Some of the language includes:

• Utilization of more than one MBE firm on any given scope of work
• Utilization of different MBE Female Businesses on any given

scope of work
• Designating a percentage cap on how much can be

subcontracted through material purchases with minority firms to
allow more “work-in-place” opportunities
• Designated minimum amount of MBE firms to be included in plan

In addition, Austin has also taken steps in its internal processes to modify
existing “sub-tier” tracking documents to allow for real time knowledge
of payments, percentage paid to date, amount remaining to be paid and
where the prime contractors are against their original inclusion
commitments. This allows Austin to identify any early potential issues
regarding commitments between primes and their MBE subcontractors
and leaves time for any specific strategic planning that may be needed in
order to maintain and uphold commitments.

CITY OF DALLAS

RESPONSE TO QUESTION 2 - SIGNIFICANT ACHIEVEMENT

The Office of Business Diversity has worked diligently with
the Bond Program Office to ensure not only that the M/WBE goals were
met, but also to include diverse teams on the bond program projects. This
includes a four-year consultant contract to manage various aspects of the
bond program, which include street projects, city facilities and park
infrastructure. We are pleased to announce that, in addition to each item
exceeding the M/WBE goal of 36.30%, 2 of the 3 teams are joint ventures;

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one of which is a 100% minority joint venture. Finally, through a joint
venture, we were able to introduce one new firm that has never done
business with the City of Dallas. These three items total $14.98M with an
overall M/WBE participation of $9.79M or 65.33%.

2017 Bond Program

• Program Manager Consultants
• Three contracts awarded: Horizontal, Vertical, Parks
• Total Value: $14.98M
• Total M/WBE participation: $9.79M or 65.33%
• 2 of the 3 teams are joint ventures
• One team is 100% minority joint venture

2018 - 41 M/WBE Primes totaling $57.2M

In addition, the Office of Business Diversity is using an innovative training
approach to show businesses that may be lacking capacity or competency
in one area that they can team with another business in order to
successfully participate on a City of Dallas project. The model is one in
which the subcontractor and prime join for a business agreement. The
subcontractor brings the skills and competency, and the prime brings the
human capital. The contract ecosystem is now created for optimal
performance. This is a known model, but the Office of Business Diversity
is delivering specialized training with attorneys, certified public
accountants and businesses who have had success with this model.

CITY OF FORT WORTH

RESPONSE TO QUESTION 2 - SIGNIFICANT
ACHIEVEMENT

Community organizational leaders met with the City Manager and
Economic Development Director to express their concerns about the low
participation of MBEs in the City of Fort Worth’s supply chain (specifically
African Americans). The Office of Business Diversity (“OBD”) developed a
strategy to target new MBEs.

The City hosted a Saturday morning event explicitly targeting members
of key organizations. Additionally, the OBD staff participated in D/FW
MSDC‘s Hard Hat event and was successful in meeting many new MBEs.

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The Staff was persistent in following up with each of the MBEs. As bid
opportunities became available, each MBE was contacted by staff and
asked to attend the pre-bid meetings.

The final result is that fourteen (14) “new” MBEs were awarded contracts
as first-time bidders, in Prime and subcontracting roles, with the City of
Fort Worth. Four of the fourteen MBEs were certified by the DFW MSDC.
Contracts awarded to MBEs included (7) African Americans, (6) Hispanics
and (1) Native American.

The total value of contracts awarded was approximately $7M. One MBE
firm was awarded an $800,000 contract as a prime to provide millwork,
an area where there had been no MBEs in this space. The Office of
Business Diversity continues to track each of these vendors to ensure that
they are still engaged and bidding on more work.

DALLAS AREA RAPID TRANSIT
(DART)

RESPONSE TO QUESTION 2 - SIGNIFICANT
ACHIEVEMENT

In 2018, DART had an RFP for the replacement of rail within our Central
Business District. The project had an M/WBE goal of 25% MBE and 7%
WBE participation. The lowest bid received was by a leading national rail
and construction firm while the non-successful firm was a Joint Venture
(JV) company that included an MBE as a JV member. When the Diversity
Department reviewed bid documents, it was determined that the lowest
bidder only had commitments of 2.7% MBE and 6.2% WBE participation.
Included with this information was documentation that supported their
claims on why the goal was unattainable. Diversity Department staff
investigated their claims and made a determination that they did not act
in good faith to meet the goal. Concerning to Diversity Department staff
were the letters of invitation to bid to potential M/WBE subcontractors.
The letters were dated December 4, 2018 and their deadline to respond
back was December 7, 2018. Requiring firms to provide sufficient pricing
in less than 3 days for a project of this magnitude does not show “good
faith”.

The Diversity Department proceeded to make a strong recommendation
to contracting officer not to award based on our findings. This was a

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controversial decision because (1) their price was lower than the second
bid and (2) the contractor is a large conglomerate firm with a long history
at DART. However, advocating for the inclusion of M/WBE firms within
our procurement processes is very important to DART. Because of this,
the contract was awarded to the second-place firm that had M/WBE
commitments of 40% MBE and 7% WBE (contract valued at $13.4
million).

METHODIST HEALTH SYSTEM

RESPONSE TO QUESTION 3 - ECONOMIC
IMPACT

Methodist Health System partnership with RAM Surgical has made it
possible for RAM Surgical to expand their business and manufacture a
much broader range of products - from isolation gowns to tongue
depressors.

The higher volume, multi-year guaranteed contractual business
commitment from Methodist has allowed RAM Surgical to gain a foothold
in the disposable medical supply market and become a viable competitor.
This strategyt benefits both parties. RAM has been able to consistently
deliver quality products at a very competitive price. As a result of this
growth, RAM has recently opened a distribution center in Duncanville.
This has added to the local tax base. RAM purchases gas, vehicle
maintenance and other business services in the southern sector.

In addition, RAM has added several full and part-time employees to
handle accounting, sales, warehouse and delivery functions in order to
support the increased order volume from five Methodist Hospital
campuses.

NORTH TEXAS TOLLWAY
AUTHORITY (NTTA)

RESPONSE TO QUESTION 1 -- DOWNSTREAM IMPACT

Relationships and Opportunities Advancing Diversity (ROAD) Program
seeks to promote and facilitate relationships between prime contractors
and consultants to foster opportunities for M/WBEs to participate in
large contracts with NTTA. It is a voluntary program which also equips
M/WBE firms to compete for larger projects.

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Benchmark Environmental Consultants and URS Corporation were
selected to participate in the ROAD program. Mentor firm URS and
protégé firm Benchmark Environmental Consultants achieved a big win
within a few short months. After their initial ROAD kick-off meeting, both
mentor and protégé met to discuss joint marketing strategies. Both firms
agreed to share potential opportunities in service areas that augmented
their strengths to pursue projects together.

Three months after their ROAD partnership started, one of Benchmark’s
existing clients, an international Fortune 500 telecommunications
company, asked them to bid on an environmental consulting project in
Italy. The project required a strong understanding of Italian regulations
and experience negotiating with Italian regulators. Benchmark had
previously conducted work in other countries, including Europe and Asia,
but they did not have the regulatory expertise required for this project.
URS did. Benchmark proposed that URS support the project as a
subcontractor, using local URS environmental staff from Milan. The
Benchmark/URS team submitted a proposal and won the contract
together.

NTTA’s ROAD Program was the conduit that helped facilitate the
relationship between the two organizations and created an environment
for the firms to team together on this international pursuit. It was a huge
win for Benchmark, URS and the ROAD program.

RAYTHEON

RESPONSE TO QUESTION 3 - ECONOMIC
IMPACT

As a key element of our Strategic Sourcing strategy, Raytheon establishes
aggressive small business goals for inclusion of MBEs and diverse
suppliers. Our sourcing process employs a collaborative cross-functional
team to maximize and leverage MBEs throughout the entire integrated
product lifecycle.

The team is comprised of the Supplier Diversity Office and
representatives from Supply Chain, Engineering, Quality, Programs and
Operations. Advocates lead, sponsor and attend customer matchmaking
and networking advocacy events on a local and national level.

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These events enable Raytheon to understand supplier capabilities and
develop strategies to actively integrate qualified MBEs and small
businesses into enterprise program opportunities. The Supplier Diversity
strategy resulted in more than 55% of Raytheon’s supply base being small
and diverse suppliers.

In 2018, Raytheon SAS spent over $402M with small and diverse suppliers
and over $41M with MBEs.

TOYOTA NORTH AMERCIA

RESPONSE TO QUESTION 2 - SIGNIFICANT
ACHIEVEMENT

Toyota works hard to include diverse businesses in their program,
particularly through education and mentorship to continuously improve
diverse supplier capabilities. Toyota concentrates on sustainability and
growth as a focus area for all suppliers, current and potential – diverse
and non-diverse.

Toyota collaborated with D/FW MSDC in 2018 to develop and implement
a specialized Inaugural Mentorship Program. This pilot year was kicked
off with four D/FW MSDC MBEs: Alpha Business Images, CVAL
Innovations, DSI Systems and Real. Toyota is implementing the initial
process utilizing Indirect Procurement Senior Managers, along with a
Toyota Executive for each Mentee. Mentees are responsible for
developing the criteria, planning, and structure based on their specific
needs and goals. The purpose is to allow a breadth of knowledge and
level of management to provide guidance, support and advice to this MBE
for a full year.

The D/FW MSDC program with Toyota is designed to set the groundwork
for creating a long-lasting mentorship program with additional
sponsoring Buying Entity partners and certified MBEs. The goal is to
ensure MBEs have access to as many resources as possible to successfully
grow, while enhancing the understanding and participation of Buying
Entity representatives in the goal of minority business inclusion.

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UNT System

RESPONSE TO QUESTION 2 - SIGNIFICANT
ACHIEVEMENT

The UNT System HUB Program initiated a new process for departments
obtaining informal quotes for purchases between $5,000 - $25,000.
Previously, the departments would use the State of Texas Centralized
Master Bidders List to identify HUB certified vendors. The efforts resulted
in up to 2 bids being received from HUB vendors. Now, the HUB Program
staff completes the informal bids through the use of the UNT HUB
internal network of vendors whom they have met.

The number of bid opportunities provided to women and minority
businesses has increased significantly. This has led to more awards to
M/WBEs from the UNT System.

UNT System spends more than $11.9 million with HUB-certified vendors
with commodities ranging from scientific equipment to promotional
items to athletic equipment.

VISTRA ENERGY

RESPONSE TO QUESTION 2 – SIGNIFICANT
ACHIEVEMENT

In 2018, Vistra Energy implemented their
Growth and Capacity Building initiative
designed to increase spend with existing suppliers (grow) and expand
capacity and sustainability through diversification. Vistra’s most
significant accomplishment was with Warfab, Inc., a Hispanic woman
owned fabrication company and one of the company’s long-time, top
mining suppliers supporting draglines in East Texas. Vistra was
decommissioning four of their five mines. Vistra recognized that the
decommissioning would have a dramatic negative result on Warfab’s
business and sustainability.

Vistra Energy targeted Warfab to deploy the Growth and Capacity
Building process. The company worked with the supplier to introduce
them to new areas to build their capacity and increase sustainability.
Vistra made introductions and helped the supplier develop relationships

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across the Utility Industry, with Vistra prime suppliers and with
companies OUTSIDE the Utility Industry.

The introductions resulted in Warfab increasing spend with Vistra’s
Central Texas mine managers at Kosse Mine by $3.78 million. In addition,
an introduction to the Vistra’s Power Generation business resulted in an
additional $90,000 at the Martin Lake Power Plant. Finally, Vistra Energy
sponsored Warfab’s atendance to the 2018 NMSDC Conference,
introducing them to several peer companies in the Utility Industry Group,
as well as the Oil & Gas Industry. To date, this has resulted in Warfab
being added to bid lists with several other companies and to continued
growth with Vistra Energy/Luminant despite the decommissioning of the
East Texas mines.

HONORABLE MENTIONS

JCPENNEY

RESPONSE TO QUESTION 2 - SIGNIFICANT ACHIEVEMENT

Despite the various industry challenges and leadership changes, the
JCPenney Supplier Diversity Program was able to make a strong impact in
the areas of education, development and exposure of diverse owned
businesses in 2018. Through the JCPenney Supplier Academy and
Readiness Program, JCPenney provided training and development
opportunities for more than 150 current and prospective vendors.

The annual Diverse Supplier Summit included workshops and panel
discussions designed to give suppliers the tools to better succeed and
sustain growth with JCPenney and in the retail industry. Prospective
suppliers also had the opportunity to showcase their product offerings
during a product expo and/or to participate in round table discussions
with members from the sourcing and procurement team. One current
supplier was able to expand its footprint in 2018 from a test in 45 stores
to 350 of the JCPenney stores and online shopping.

As an active member in NMSDC’s Retail Industry Group (RIG), JCPenney
assisted with the planning and execution of the first Retail Pitch
Competition held during the national minority conference in the Retail
Pavilion of the Expo Hall. The RIG Pitch competition awarded four MBE’s
with scholarships to educational programs, conference registration and
an Expo booth.

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Dallas/Fort Worth Supplier Minority Development Council

In addition, the company supported the Student Entrepreneurship
Program and mentored one of the students in developing and honing
their presentation/pitch as a part of the program.

UT Southwestern Medical Center

RESPONSE TO QUESTION 1 -- DOWNSTREAM
IMPACT

UT Southwestern Medical Center (UTSWMC) has developed a three-
pronged approach to expand its supply chain impact to increase minority
business inclusion.

First of all, UTSWMC has escalated its communication and elevated its
partnerships with awarded prime contractors. Secondly, it has aligned
the Supplier Diversity/Historically Underutilized Business Program (HUB)
and the Purchasing department; the UTSWMC HUB Program personnel
now report directly to the Purchasing Director.

Finally, UTSWMC has developed and implemented policies and
procedures to accurately evaluate and measure prime suppliers’ lower
tier participation. Due to these efforts, UTSWMC has transitioned from
compliance reporting to incorporation of the HUB Program into all of the
comprehensive procurement strategies.

One recent example of the impact of the new policy changes involved
UTSWMC’s William P. Clements University Hospital (CUH) project,
wherein UTSWMC conducted an audit of one of the larger prime
contractors and its HUB efforts. This audit enabled UTSWMC’s
collaboration with the prime supplier to review progress report
submissions. The audit process determined that the prime supplier was
inadvertently under-reporting its actual HUB Program participation. This
correction bolstered confidence of both parties in the newly-
implemented policies and procedures because the outcome was
mutually beneficial. As a result, UTSWMC’s minority business
inclusion/HUB Program participation increased from 19.3 % to 29.9% on
the CUH project for the beginning of FY19.

In summary, UTSWMC’s incorporation of the HUB Program into the
Purchasing Department has shown early success; this integration will
enable the HUB department to become a strategic partner in the
advancement of the North Texas Community.

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Dallas/Fort Worth Supplier Minority Development Council

2019 BTTBU Best Practice Winners

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Dallas/Fort Worth Supplier Minority Development Council

2019 BTTBU Best Practice Winners

The D/FW MSDC 2019 BTTBUTM CLASS

High achievement always takes place in the framework of high
expectation. --– Charles F. Kettering

The BUY THOSE THAT BUY USTM 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.

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Dallas/Fort Worth Supplier Minority Development Council

The BTTBUTM Class of 2019 composed of 41 Buying Entity Partners
reported an aggregate spend of $4,900,245,469 with certified D/FW
MSDC suppliers.

Alcon Laboratories, Inc. Lockheed Martin Aeronautics
American Airlines Manhattan Construction
AT&T Methodist Health System
Austin Commercial, LP Nokia of America
BNSF Railway Company North Texas Tollway Authority
Capgemini US LLC (NTTA)
City of Dallas ONCOR
City of Fort Worth Parkland Health & Hospital
Comerica Bank System
Dallas Area Rapid Transit PepsiCo Inc.
(DART) Prestige Maintenance USA
Dallas County Raytheon
Dallas County Community Shell Oil Company
College District Southwest Airlines Company
Dallas ISD Texas Instruments, Inc.
DexYP/Thryv The Beck Group
DFW International Airport Toyota North America
Ericsson Inc. Turner Construction Company
Federal Reserve Bank of Dallas UNT System
Fluor UT Southwestern Medical
Fujitsu Network Center
HEB Grocery Company LP Vistra Energy
JCPenney VRM Mortgage Service

The D/FW MSDC 2019 BTTBUTM Aggregate Profile

The 2019 BTTBUTM Aggregate Profile is based upon submissions by buying
entities of the BTTBUTM 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.

Minority inclusion spend with D/FW MSDC certified suppliers increased
slightly in 2019 reporting. There was bigger growth in spend with NMSDC
certified suppliers who were not certified in D/FW MSDC. However, those
companies headquartered in the region continued their concentration on
the utilization of regionally headquartered suppliers.

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Dallas/Fort Worth Supplier Minority Development Council

Tier 2 spend or spend through primes decreased slightly and may be due
to the mix of Buying Entities reporting in this iteration more than the lack
of actual Tier 2 spend. Not all companies capture this number.

Best practices that highlight elements that make a strong supplier
diversity program showed only minor changes. Perhaps the most relevant
is the decrease in written goals for primes, supplier diversity
professionals and buyers. What gets measured gets done, so we would
hope this trend is related more to the types of companies included in the
mix.

2019 2018 2017 Description

Number of Buying

Entities spend

reporting at time

35 36 33 print

Direct Spend with

$ 4,900,245,269.00 $ 4,523,953,296 $4,393,021,138 D/FW MSDC MBEs

Direct Spend with

$ 13,670,486,949.00 $ 10,531,279,083 $11,443,824,427 NMSDC MBEs

Indirect Spend with

$ 1,115,407,855.00 $ 1,448,166,028 $1,219,993,630 certified MBEs

Formal Supplier Diversity Program with Key Success Elements

Designated Supplier

97% 97% 97% Diversity Personnel

Active C-Level

86% 83% 94% Involvement

Senior Executive pay

46% 42% 45% impacted by results

Written numeric

71% 69% 71% goals in contracts

Written goals for

74% 78% 81% prime suppliers

Written supplier

91% 92% 97% diversity goals

Written goals for

80% 86% 87% buyers

Supplier Diversity is

part of business

89% 92% 94% culture

MBE Development

2019 BUY THOSE86T%HAT BUY USTM W8h3%ite Paper 94% PleraosvtidoencfeePeaadgybeeaac2rk3at

Provide mentoring

91% 86% 87% and/or training

Written goals for

74% 78% 81% prime suppliers

Written supplier

Dallas/9F1o%rt Worth Supplier9M2%inority Developm97e%ntdWCivroeiutrtnseictnyilggooaalslsfor

80% 86% 87% buyers

Supplier Diversity is

28091%9 29021%8 part of business
29041%7 Dcuelstucrrieption
Number of Buying
MBE Development
EPnrotivtiidees sfepeednbdack at
86% 83% 94% rleeapsotrotinncgeaat ytiemaer
35 36 33 pPrrionvtide mentoring
91% 86% 87% Danirde/cotrStpreanindinwgith
$ 4,900,245,269.00 $ 4,523,953,296 $4,393,021,138 DAc/FceWptMteSaDmCiMngBEs
Danirde/cotrSjpoeinntdvwenitthure
$ 13,670,486,949.00 $ 10,531,279,083 $11,443,824,427 NorMuSnDbCunMdBleEs
89% 97% 77% IcnodnitrreaccttSspend with
$ 1,115,407,855.00 $ 1,448,166,028 $1,219,993,630 certified MBEs

Formal Supplier Diversity Program with Key Success Elements

Designated Supplier

97% 97% 97% Diversity Personnel

Active C-Level

86% 83% 94% Involvement

Senior Executive pay

46% 42% 45% impacted by results

Written numeric

71% 69% 71% goals in contracts

Written goals for

74% 78% 81% prime suppliers

Written supplier

91% 92% 97% diversity goals

Written goals for

80% 86% 87% buyers

Supplier Diversity is

part of business

89% 92% 94% culture

MBE Development

Provide feedback at

86% 83% 94% least once a year

Provide mentoring

91% 86% 87% and/or training

(Note: 2019 results are based upon 2018 actuals; 2018 Aarneccdse/uoplrttstjoeaianrmet vinbeganstuerde
upon 2017 numbers and 2017 results are based upon 20o1r6unnbuumndbleers.)

89% 97% 77% contracts

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Dallas/Fort Worth Supplier Minority Development Council

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Dallas/Fort Worth Supplier Minority Development Council

BTTBUTM 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 the BTTBUTM initiative
and Senior Director, Supplier Diversity with Vistra Energy. “We not only
want to help grow firms, we also want them to have the economic well-
being to use products produced by buying entities – BUY THOSE THAT
BUY USTM!”

In 2009, the Council developed a fund to assist deserving MBEs in the
growth and development of their businesses. 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 $142,850 in cash
and over $25,000 of “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 that has been certified by the Council for at least two years. The
recipient must identify a critical need for its business that, if met, will
support the growth and development of the business. The cash award
may partially or fully fund this need.

Contributions may be made to the BTTBUTM 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 BTTBUTM 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 businesses 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).

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 utilization as demonstrated by more than
$25.2 billion in direct spend with minority-owned businesses.

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 http://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, 2019. 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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