Second tier/subcontracting program

We are dedicated to increasing the utilization of minority business enterprise (MBE), woman-owned business enterprise (WBE), small business enterprise (SBE), and gay/lesbian/transgender (GLBT) suppliers in our purchasing and contractual business. We accomplish this, in part, by requiring these suppliers to take part in Aetna’s Second Tier/Subcontracting Program. Second-tier/subcontracting opportunities can be achieved in two ways: 

Direct - Purchases that directly support Aetna's specific business needs. Must be able to directly trace supplier’s payments to a specific contract or purchase order with an MBE, WBE, SBE, or GLBT supplier.

Example: Print Company, a supplier of Aetna, purchases all of its paper through a minority-owned paper supplier. The expense of this paper is considered a direct second tier purchase.


Indirect - Purchases that support a supplier’s overall business strategy. Spending is not made specifically in support of Aetna’s business. This amount is obtained by using a calculation approved by the National Minority Supplier Development Council.

Example: Aetna’s supplier, Allstar Event Planning, annually spends $100 million with minority- and women-owned suppliers. Aetna represents 1 percent of Allstar’s business. The second-tier spend with Allstar Event Planning would be ($100 million x 1%), or $1 million. Under the indirect method, spend cannot be traced back to a specific minority or women-owned supplier.

Aetna’s subcontracting plan 

If your company is awarded the business, you may be required to complete a subcontracting plan. The supplier subcontracting plan should include, but not be limited to:

• The estimated percentage of total subcontracting dollars your company intends to spend directly with MBE/WBE/SBE/GLBT firms annually across your entire business or in support of our business, whichever applies.
  
• The corporate plan for taking specific steps to progressively increase your utilization of MBE/WBE/SBE/GLBT across your business and in direct support of Aetna’s business. The principal goods and services to be subcontracted to MBE/WBE/SBE/GLBTs.
  
• A statement agreeing to maintain, if awarded the business, all necessary documents and records to support your efforts to achieve the estimated MBE/WBE/SBE/GLBT subcontracting goals. Identify the individual responsible for administering this subcontracting plan and submitting quarterly participation reports. Quarterly reports (direct, indirect, or both) are due by the end of the first week following the close of each quarter.

For help with Aetna’s Second Tier Subcontracting Plan or Reporting, please speak with your Aetna Procurement or Supplier Diversity contact at supplierdiversity@aetna.com or 860-273-1000.