Doing Business with TVA

ETEBA Meeting

August 25, 2016

What is TVA?

A power company

and so much more…

Here to Serve

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“Power is really a secondary matter…TVA is primarily intended to change and improve the standards of living of the people of the Valley.”

- President Franklin D. Roosevelt

During a news conference at Warm Springs, GA

Nov. 23, 1934

We serve the people of the Valley

to make life better

Our Mission:

Serving the people of

the Tennessee Valley

to make life better.

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The Three E’s

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Energy Provide affordable electric power throughout

the Tennessee Valley Region

Environment Act as a steward of the Valley’s natural

resources

Economic Development Serve as a catalyst for sustainable

economic development

TVA Values

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•Safety •Integrity • Accountability

•Collaboration •Service

TVA Supply Chain Organization

• Provide material and services to

strategic business units at the lowest

total cost of ownership.

• Ensure reliable operations by

managing and optimizing:

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Our Purpose

• 320 employees

• Manage spend of over $3.5 Billion

annually for materials and services

• Over $600 Million in inventory

Our Team

o Sourcing o Procurement

o Freight o Inventory

o Material Distribution o TVA Fleet

Supplier Diversity

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• Committed to maintaining a competitive,

diverse supplier base that is reflective of

the TVA region.

• Supports the utilization of qualified

businesses that are small and/or diverse:

o Woman-Owned

o Minority-Owned

o Veteran-Owned

o Service-Disabled Veteran-Owned

o Located in Historically Underutilized Business

Zones (HUBZones)

Supplier Diversity

To source 27% of

our purchases

from small

businesses

To source 10.5%

of our purchases

from diverse

businesses

TVA is committed to partnering with diverse

suppliers as we continue to reduce Operations

and Maintenance costs and improve the overall

value we deliver to the people of the Valley

In Fiscal Year 2015,

TVA spent $946

million with small

businesses and $379

million with diverse

businesses

Our Goal: Our Track Record:

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Doing Business with TVA

How does TVA evaluate

suppliers?

• Generally based on qualifications,

resources, capabilities, prior

experience, financial strength, etc.

• Often dependent on the commodity,

service, or equipment needed

• Evaluation Factors:

— Technical

— Commercial

— Delivery time, lead times, service

levels, etc.

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What advice would you give a

business looking to grow?

• Distinguish yourself from the competition

• Be persistent and explain your relevance

• Have a targeted, unique solution that

addresses a need / issue

• Start small – build a fiercely loyal customer

base

Top Mistakes Businesses Should Avoid

• Trying to be all things to all

people

• Growing too fast

• Lack of industry knowledge

• Not understanding your

competitors

• Not diversifying your customer

base

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Challenge

• Focus on your niche

• Focus on the right infra-structure

and staffing

• Do your homework

• Research your competition

• Don’t let one customer sink the

ship

Response

Getting Started

Visit:

supplier.tva.gov

Network with TVA and our large prime suppliers,

understand requirements, build relationships and

seek subcontracting opportunities

• Complete TVA’s Online

Supplier Registration Form

• Research our upcoming

opportunities

• Review our subcontracting

partners and opportunities

list

Submit a capability

statement to:

vendor2@tva.gov

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TVA Subcontracting

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Subcontracting

A subcontracting plan

that covers the entire

contract period,

including option periods,

applies to a specific

contract and has goals

that are based on the

contractor’s planned

subcontracting in

support of the specific

TVA contract

Contracts that are $700,000 or more

($1.5M for construction) require a

subcontracting plan

Public Law 95-507 of the Small Business Act of 1953, passed in 1978 created the foundation for the Subcontracting Assistance Program

A subcontracting plan

(including goals) that

covers the contractor’s

fiscal year and that

applies to the entire

production of

commercial items.

Plans and goals are

negotiated with the

initial agency on a

company wide basis

Individual Plans Corporate Plans

Subcontracting Helpful Tips

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• Stay current on TVA projects

• Become familiar with TVA’s

buying habits of products and

services

• Know who our large prime

suppliers are and where they

are located

Subcontracting is a great way to get

TVA experience, and potentially

become a direct prime supplier

http://supplier.tva.gov/Documents/TVA_Subcontracting_Partners.pdf

TVA’s Supplier Connections Portal http://supplier.tva.gov

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Supplier Sourcing Database Registration

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Power Advocate Home Page

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Important Reminders

• Supply Chain requires all suppliers to have an appointment when visiting

an office area

• Send email to Supplier Connections if you need help identifying your

Supply Chain representative – supplierconnections@tva.gov

• Be sure to register on TVA’s Supplier Portal

• Contact Supplier Diversity if you are a small or diverse company for

additional guidance

- Althea Jones: arjones@tva.gov

- Amanda Chargualaf: acchargualaf@tva.gov

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