This practice contains guidelines to be followed by Company activities in providing assistance intended to establish and develop long term supplier sources that are identified by the Company as having high potential and that have been certified by Purchasing and Supply Staff as minority business enterprises.

It is Company policy to include in its supplier/carrier selection business enterprises owned and operated by individuals who qualify as members of minority roupa. A minority group member is defined as American: Black, Hispanic, Indian (native American), Eskimo, or Aleut.

The Company will establish objectives and endeavor to place a fair proportion of its total outside business with minority enterprises judged to have potential for niveting Company standards. Company activities will assist these minorities turou, such means as consultation, personnel training, multi-year contracts, dication of bidding practices, obtaining equipment and inventory, and other Alures as provided in Company Policy Letter D-2.

TIAL CONTACT WITH MINORITY SUPPLIERS

tul contact between prospective minority suppliers and Company Purchasing
Traffic activities may be established in the same manner as with any
piler interested in doing business with the Company. The initial meeting
cli cupios. the specific commodities or services offered by the supplier in
kes to de bermine whether a deeper profile of its capabilities should be obtained.
and also be determined whether the supplier we ld require assistance
or to provisions of Company policy on doing business with minority enterprises.

If the supplier's status as a minority enterprise is t be a sourcing consideration 1.1 further discussions are intended, the supplier s. uld be informed that certification is a prerequisite to further business discussions or contacts. Further, the supplier should be advised to obtain certification from Purchasing and Supply Staff,

Company activities completing an initial contact will open a file on the minority supplier or carrier and maintain a chronological re.ord and history of all Subsequent contacts.

The following specific criteria, and other measurements of program intent, will guide Purchasing and Supply Staff in verifying a potential supplier's initial status as

a bona fide minority enterprise:

Minority equity investment should represent controlling interest in
the company.

Unincorporated minority companies should not contain charter
provisions which restrict increases in minority ownership.

Production machinery and equipment used in the business should
generally be owned rather than leased by the minority enterprise.
Qualified minority members must be directly responsibile and
actively control the daily conduct and management of operations.

A supplier's or carrier's minority status will be certised by Purchasing and Supply :: In the following manner:

The minority supplier submits completed Information and Certification
forms provided by the Company.

Following evaluation of the information on these forms, Minority Supplier
Development, Purchasing and Supply Staff may elect to interview the
supplier and, if deemed advisable, visit and review the plant operations
involved.

Barring discoveries requiring supplier submission of additional information, upplier's minority status is certified and supplier is notified

(b) any change in the minority participation or ownership of the

Generally, it is the Company's objective to assist a minority enterprise that can potentially meet the Company's normal standards for supplier qualification and Achieve a viable competitive status in its specific commodity or service market sector within 3 to 5 years. Assistance may be given to minority suppliers of products, materials, and service's including, but not limited to, dealers, distributors, and businesses engaged in financing, management research, testing, consulting, advertising, public relations, employe placement, real estate, legal engineering, and maintenance. The following type of assistance may be extended to a minority enterprise by Company activities authorized to exercise procurement responsibility: Consideration in all Company outsourcing actions as required

by Company Policy Letter D-1.

Assistance in procuring Company surplus machinery and equipment
under applicable Company procedures for dispo"al of assets.

Assistance in obtaining appropriate extensions of interstate operating
authorities by supporting supplier applications.

Offers of technical or administrative assistance to offset their
deficiencies in these areas.

Modification of established Company bidding practices and the negotia-
tion of prices without benefit of normal competition.

CHfurs of multi-year purchase agreements wher: essential
Plom i development.

Letter to the supplier.

Division sponsorship, concurred in by the affed Purchasing activity
...........zed by a Division General Manager
Carrerce in the sponsorship by the Office o ne General Counsel
and Pazonasing and Supply Staff is a prerequis. (See Attachment I)

Sponsorship may be offered if the Company's interest in the development of the supplier's commodity or service requires more closel, coordinated assistance. At the request of the sponsoring Division coordinator.ther Company operating activities may be requested to assist a sponsored supp er. Generally, assistance. from Corporate Staifs will be requested by Purchasing nd Supply Staff.

Sponsorship should limit assistance to advice and cotation. It must not extend to ect na,,ement of the supplier business activities.

The following specific criteria, and other measurements of program intent, will guide Purchasing and Supply Staff in verifying a potential supplier's initial status as

a bona fide minority enterprise:

Minority equity investment should represent controlling interest in
the company.

Unincorporated minority companies should not contain charter
provisions which restrict increases in minority ownership.

Production machinery and equipment used in the business should
generally be owned rather than leased by the minority enterprise.
Qualified minority members must be directly responsibile and
actively control the daily conduct and management of operations.

A supplier's or carrier's minority status will be certised by Purchasing and Supply $. in the following manner:

The minority supplier submits completed Information and Certification
forms provided by the Company.

Following evaluation of the information on these forms, Minority Supplier
Development, Purchasing and Supply Staff may elect to interview the
supplier and, if deemed advisable, visit and review the plant operations
involved.

Durring discoveries requiring supplier submission of additional information, ::.. -pplier's minority status is certified and the supplier is notified

(a) certification is limited to the supply of cen nudities or
services specified in the information forms submitted,

and

(b) any change in the minority participation or ownership of the
enterprise certified may require recertification.

Generally, it is the Company's objective to assist a minority enterprise that can potentially meet the Company's normal standards for supplier qualification and .chieve a viable competitive status in its specific commodity or service market sector within 3 to 5 years, Assistance may be given to minority suppliers of products, materials, and service's including, but not limited to, dealers, distributors, and businesses engaged in financing, management research, testing, consulting, advertising, public relations, employe placement, real estate, legal engineering, and maintenance. The following type of assistance may be extended to a minority enterprise by Company activities authorized to exercis: procurement responsibility:

Assistance in procuring Company surplus machinery and equipment
under applicable Company procedures for dispoчal of assets.

Assistance in obtaining appropriate extensions of interstate operating
authorities by supporting supplier applications.

Offers of technical or administrative assistance to offset their
deficiencies in these areas.

Modification of established Company bidding practices and the negotia-
tion of prices without benefit of normal competition.

Curs of multi-year purchase agreements wher: essential
pain.. i development.

etter to the supplier.

živi non sponsorship, concurred in by the affectd Purchasing activity
- fyr.....l.zed by a Division General Manager
Capurrence in the sponsorship by the Office o ne General Counsel
und Pizchasing and Supply Steff is 1 prerequis.. (See Attachment I)

Sponsorship may be offered if the Company's interest in the development of the supplier's commodity or service requires more closely coordinated assistance. At the request of the sponsoring Division coordinator. ther Company operating activities may be requested to assist a sponsored supp er. Generally, assistance. trum Corporate Staffs will be requested by Purchasing nd Supply Staff,

Sponsorship should limit assistance to advice and com Itation. It must not extend lo di ect management of the supplier business activities.