National Supplier Diversity Overview

Supplier Diversity is a critical component in our ability to maintain our standards for excellence essential to deliver clean water for life!

American Water is committed to strengthening the economy and improving our communities, and supplier diversity plays a critical role in how we do that. We provide access and opportunity to diverse suppliers to participate in procurement and contracting processes throughout American Water’s supply chain.

Overview

At American Water, we believe three things about supplier diversity:
1. It’s about access and opportunity.
2. It brings value to American Water and our communities.
3. It’s everybody’s job.

It’s about access and opportunity.

We are committed to strengthening the economy and improving our communities, and supplier diversity plays a critical role in how we do that. We know that small, minority-owned, women-owned and other diverse businesses play a vital role in the economic well-being of our communities. As a result, we strive to provide access and opportunity to qualified suppliers that can offer diverse resources and expertise.

It brings value to American Water and our communities.

Supplier diversity aligns with American Water’s vision of being an innovative policy and services leader for America’s economy, advances our widely acknowledged and respected diversity and inclusion practices, and enables us to deliver the best overall solutions to our constituents. Engaging a diverse pool of highly qualified suppliers better enables us to drive down costs through increased competition, deliver high-quality products and services to constituents, produce innovative and flexible solutions, provide enhanced customer service, streamline processes, and mitigate risk of supply chain disruptions.

It’s everybody’s job.

We know that supplier diversity success flows from intentional, deliberate and consistent effort by every person who influences a buying decision. That’s why supplier diversity practices are embedded in our existing procurement processes and guidelines. Our procurement and supplier diversity staff collaborates with departments and business lines to provide the maximum opportunity for diverse suppliers to participate in our procurement processes.

What is the difference between a tier 1 and tier 2 supplier?

Tier 1 supplier: a company (diverse or not) awarded a contract for work directly from American Water Works Service Company, Inc., its subsidiary and affiliated companies. Certified tier 1 suppliers ARE NOT required to report tier 2 diversity spend.

Tier 2 supplier: a company (diverse or not) who is awarded a contract by a tier 1/prime supplier. Asking our tier 1 suppliers to source inclusively via tier 2 diverse suppliers offers non-diverse companies opportunities to participate and amplifies the impact of the diversity program creating greater inclusion.

Tier 2 diverse suppliers – direct vs. indirect

Direct: payments made for subcontracting some or all of a purchase with a diverse supplier that can be traced to a specific PO

Indirect: payments made for subcontracting that cannot be tracked to a specific PO’s (landscaping, cafeteria services, benefits, etc.)

What’s your role as a potential supplier?

Help us understand your capabilities and the unique value proposition you offer.

National Supplier Diversity

For supplier diversity related inquires, contact the National Supplier Diversity team
Lawrence Wooten, Senior Manager, National Supplier Diversity Lawrence.Wooten@amwater.com
Sharon Manker, Supplier Diversity Coordinator, National Supplier Diversity Sharon.Manker@amwater.com

What is a Diverse Supplier?
Certifying & Resource Organizations
External Outreach
Supplier Diversity Portal & Resources
FAQs