LG-TEK Master Subcontract & Supplier Diversity Corporate Plan Fiscal Years 2021 – 2026
Lingual Information System Technologies, Inc. (dba LG-TEK) has undergone a transformation, as a growing business. LG-TEK is certified as an Economically Disadvantaged Woman-Owned Small Business (EDWOSB), as well as a Minority-Owned, and Veteran-Owned Small Business. The business environment in which the LG-TEK competes is increasingly competitive. If LG-TEK is going to succeed, then it must take full advantage of all resources available. LG-TEK, like any service provider, depends on its suppliers as they are a key resource helping LG-TEK to meet customer expectations. LG-TEK continues to perform broad market research and analysis of the American supplier community to identify and select the best suppliers. LG-TEK maintains a tight focus on core products and services to ensure that universal, affordable services continue to have the power to communicate, reach key audiences, and help bind America together. To achieve this, LG-TEK relies heavily on its small, minority-owned, and women-owned suppliers that are agile, responsive, and effective. These suppliers make up the majority of firms in the United States, and drive growth in the American economy. LG-TEK has established a Diversity Supplier Plan that lays the foundation for the program to ensure continued and optimized use of diverse companies.
Within LG-TEK, all employees who generate a requirement, approve a purchase, commit LG‑TEK funds, identify or select suppliers, or manage a supplier relationship are responsible for establishing and maintaining a strong, competitive supply base.
LG-TEK is committed to providing opportunities to small, minority-owned, and women-owned businesses and views Supplier Diversity as an important business imperative. We are focused on continuous improvement in this as in all areas of business. We must push business effectiveness and operational efficiency to the limit. Our goal is to make LG‑TEK a world class leader in Supplier Diversity. This Plan provides a clear path for reaching that goal.
Supplier Relations
The LG-TEK Supply Chain Management activities operate under eight Supplying Principles that represent the strategic elements that guide LG-TEK buying and material management activities. Each principle is central to obtaining the financial, operational, and public policy goals outlined in LG-TEK’s Transformation Plan.
The LG-TEK’s Supplier Relations Principle aims to establish and maintain a strong, competitive supplier base that reflects the diversity of the American Supplier community. LG-TEK is committed to having a world-class supply base. LG-TEK supplying professionals will seek out methods to optimize its supplier base in line with the specific characteristics of the market, the good or service being supplied, and the goals of LG-TEK.
Supplier Diversity
Supplier diversity is the proactive business process that seeks to provide suppliers with access to purchasing and business opportunities.
Supplier diversity is defined by:
- Supply Management (SM) policies and objectives
- The purchasing process
- Continuous improvement and monitoring
Supplier diversity objectives include:
- Process improvements that promote opportunities for all suppliers to provide value-added products and services
- Continued broad market research and analysis of the supplier community to identify and select the best suppliers
- Awareness and information sharing
Laws, regulations, and LG-TEK’s Supplying Principles and Practices help shape supplier diversity objectives which are aligned with LG-TEK and SM objectives.
The Master Subcontract & Supplier Diversity Corporate Plan is developed to ensure a continued focus on improving our supplier relationships with Small Business (SB), Small Disadvantaged Business (SDB), Women Owned Small Business (WOSB), Veteran (VOB), Service Disabled-Veteran Owned (SDVOSB), HUB-Zone, Historically Black Colleges and Universities (HBCU), and Minority Institutions (MI). The Plan outlines a variety of discretionary activities that align with processes and procedures identified in
LG-TEK’s Supplying Principles and Practices.
Management Involvement
To ensure a continuous focus, officers and executives representing broad functional areas are responsible for ensuring a strong, competitive supply base.
Portfolio managers meet regularly to review supply base considerations and progress in implementing process improvements.
The Chief Executive Officer, President and senior managers meet quarterly to review supply chain strategies to ensure LG-TEK is taking full advantage of the capabilities, competitive pricing, new processes and products, and innovations offered by SB/SDB/WOSB/VOB/SDVOSB/HUB-Zone/HBCU/MIs.
The Supplier Diversity team in SM carries out continual assessments of supplier diversity business process applications and provides related updates and briefings on best practices. The team also serves as liaison to the SB/SDB/WOSB/VOB/ SDVOSB/HUB-Zone/HBCU/MI community.
Communication & Outreach
LG-TEK works closely with trade and industry associations, government agencies, business development groups and purchasing organizations to exchange information on methods, initiatives, and processes to identify sources of supply. This enables supplying professionals, purchase card users, and other LG-TEK personnel to effectively identify potential suppliers to meet
LG-TEK needs.
When appropriate, LG-TEK will:
- Conduct supplier forums to share information on LG-TEK corporate business objectives.
- Conduct and participate in surveys and benchmarking studies for continuous improvement of Supplier Diversity processes.
- Establish and maintain Intranet and Internet sites with Supplier Diversity policy, procedures, points of contact, and other resource information for various sourcing teams, buyers, clients and suppliers.
- Attend and participate in business opportunity and trade fairs promoting SB/SDB/WOSB/VOB/SDVOSB/HUB-Zone/HBCU/MIs.
- Continue to foster the development of mutually beneficial business relationships between internal business partners and the supplier community.
- Publicize purchasing and business opportunities in print or electronic media when it will enhance competition.
- Provide internal and external stakeholders with timely updates on the positive contributions of Supplier Diversity processes.
- Make available a formal registration process for potential suppliers.
- Work in conjunction with Small Business Administration Regional/District Office for continuous outreach to Diversity Suppliers.
- Work with Economic Development offices of local governments in identifying and promoting SB/SDB/WOSB/VOB/SDVOSB/HUB-Zone/HBCU/MIs.
Sourcing Considerations
LG-TEK uses a series of sourcing processes to capture supply data and knowledge to build a dynamic supplier base, thereby ensuring continuous improvement of the entire supply chain.
Each category team develops, implements, and maintains a written strategy for each major spend category for which the team is responsible. A strategy ensures the use of systematic processes to achieve supply chain management targets that fully support business objectives.
Strategies are developed by a thorough understanding of the external supplier environment and internal business partner requirements. The team applies supply chain management business practices to both strategic sourcing and individual purchases and examines demand trends, the marketplace, and the supplier community to determine how to achieve best value.
The purchase team must specifically consider whether any considered sourcing strategy will impact LG-TEK’s commitment to establish a strong, competitive supplier base by putting SB/SDB/WOSB/VOB/SDVOSB/HUB-Zone/HBCU/MIs at a competitive disadvantage. Guided by the Principle of ‘Best Value’, the team will gather and analyze the pertinent data supporting the sourcing strategy and make a determination to justify the strategy as part of the purchase planning process.
Market Surveillance — We will continuously assess the marketplace for drivers of market segments, industry trends, impact of new technology, competitive dynamics, supplier characteristics, and suppliers (national or regional) in a market.
When appropriate, LG-TEK will:
Publicizing Opportunities—When it is determined that doing so will enhance competition, we will announce potential business opportunities in the most appropriate and effective media to identify new sources that will improve the quality of the supply base.
When appropriate, LG-TEK will:
Purchase Card Buys — Purchase card policies support the local business community and encourage economic development of all diverse groups. When operational needs cannot be satisfied through eBuy or other electronic ordering systems, area contracts and ordering agreements, which generally represent our lowest total cost of acquiring equipment, supplies and services, the purchase card serves as the primary means of buying and paying. Cardholders are encouraged to seek out and use SB/SDB/WOSB/VOB/SDVOSB/HUB-Zone/HBCU/MIs when making credit card buys to meet their day-to-day operational needs.
Cardholders must strive to obtain the best value for LG-TEK on each purchase. Best value is obtained by evaluating the price, quality, and any other factors necessary to meet the need. Obtaining best value is the objective of every LG-TEK supplying activity and the basis for award of LG-TEK contracts.
Subcontract Management
We promote supplier development and diversity with prime suppliers through our subcontracting policy, which specifically addresses subcontracting with SB/SDB/ WOSB/VOB/SDVOSB/HUB-Zone/HBCU/MIs. Supplier Diversity subcontracting requirements are imposed on each of our subcontractors through the provisions of the purchase contract. This includes FAR 52.219-8, Utilization of Small, Business Concerns, and FAR 52.219-9, Small Business Subcontracting Plan. As such, flow down provisions will be incorporated into LG-TEK’s subcontracts.
When appropriate, LG-TEK will:
Innovative Initiatives
LG-TEK relies on the creativity and innovation of the American entrepreneurial community to help meet its business and competitive objectives. The Unsolicited Proposal Program (UPP) provides companies and entrepreneurs the opportunity to submit new technologies or ideas to improve LG‑TEK operations. An unsolicited proposal is the offer to sell to LG‑TEK the rights to ideas, concepts, products, processes or technology. It is considered unsolicited because it is not submitted in response to a solicitation, request for proposal (RFP), or any other LG‑TEK-initiated solicitation or program.
LG‑TEK will focus on building an integrated supply chain, from the supplier’s supplier to the end customer, in a highly integrated and collaborative manner to maximize the efficiency and effectiveness of the flow of goods, services, and information. LG‑TEK will continue to explore the following innovations:
LG-TEK will continue to explore the following innovations:
Training & Development
All employees in Supply Management functions will annually participate in 2 hours of training related to supplier diversity.
When appropriate, LG-TEK in collaboration with suppliers, will:
- Conduct roundtable discussions to share information on LG-TEK corporate business objectives.
- Work together to develop better proposals.
- Conduct sessions aimed at innovation and improvement.
- Benchmark and leverage their best supply chain practices.
- Adopt mentor-protégé concepts to assist emerging Diverse Suppliers.
Performance Management
All employees that generate a requirement, approve a purchase, commit LG-TEK funds, identify or select suppliers, or manage a supplier relationship are responsible for establishing and maintaining a strong, competitive supply base.
Performance Indicators — LG-TEK strives for continuous improvement by establishing effort-based indicators in such areas as:
Nothing in this Plan requires or permits employees that generate a requirement, approve a purchase, commit LG-TEK funds, identify or select suppliers, or manage a supplier relationship to grant preferential treatment to any person on the basis of race or gender.
Tracking Progress
LG-TEK strives for continuous improvement by reviewing bi-annually the effort-based indicators and year-end results. LG-TEK will periodically reposition supply strategies to adopt leading practices identified in the supply chain management process.
Goals
The Supplier Diversity Corporate Plan expresses LG-TEK’s commitment to the SB/SDB/WOSB/ VOB/SDVOSB/HUB-Zone/ HBCU/MI community. Although exempt from mandatory compliance for participation with the Small Business Act, LG-TEK will establish annual goals that represent the maximum practicable opportunity for SB/SDB/WOSB/VOB/SDVOSB/HUB-Zone/CBU/ MIs to participate in the performance of contracts to further its business and competitive interests.
The goal for each SB/SDB/WOSB/ VOB/SDVOSB/HUB-Zone/HBCU/MI category is expressed as a percentage of the estimated total contract values for the fiscal year. Starting with fiscal year 2007, and each subsequent fiscal year through 2010, the goal will be assessed on the following factors:
Data Collection and Reporting
Suppliers are classified at the prime and subcontracting (2nd-tier) levels within a socio-economic category. LG-TEK will continue to collect and report results through tracking the following:
Purchase Card transactions are not counted toward goal achievements. However, data regarding these transactions help provide a comprehensive view on total LG‑TEK spend with SB/SDB/WOSB/ VOB/SDVOSB/HUB-Zone/HBCU/MIs. As use of the Purchase Card in overall supply chain business strategies increase, LG‑TEK will re-assess the factors in setting future goals.
LG‑TEK will maintain records showing procedures which comply with the terms of this plan, including source lists of SB/ SDB/WOSB/VOB/SDVOSB/HUB-Zone/HBCU/MIs; awards to businesses on the source lists; and, participation in educational programs, trade shows, and minority council support activities. The records shall also include:
LG‑TEK will cooperate in any survey or study as may be required, submit periodic reports in order to allow the Government to determine the extent of compliance by the offeror with the subcontracting plan, submit Standard Forms SF 294, Subcontracting Report for Individual Contracts and SF 295, Summary Subcontract Report, in accordance with the instructions on Forms 294 & 295. LG‑TEK reserves the right to designate as “confidential” or “proprietary” certain documents, reports, surveys or studies.
Indirect Costs
The initial subcontracting goals include a proportionate share of products or services whose costs are normally allocated as indirect or overhead expenses. Indirect and overhead costs are allocated proportionally across direct awards commitments of the same business size (e.g., SB, SDB and large businesses).
Recognition
It is in LG-TEK’s best interests to realize the importance of recognizing and rewarding both LG-TEK personnel and supplier contributions and accomplishments. Rewarding LG-TEK personnel and suppliers for outstanding performance motivates further quality and encourages everyone to strive for excellence in their products, service levels, and operations. Recognizing and rewarding suppliers also fosters strong and productive supplier relationships.
LG-TEK will celebrate successes by:
LG-TEK is committed to Supplier Diversity as an important business imperative. The Supplier Diversity Corporate Plan, a comprehensive overview of a variety of discretionary activities, positions LG-TEK to establish and maintain a strong competitive supply base.
Supplier Relations Principle
Suppliers are essential and valued business partners of LG-TEK, and LG-TEK is committed to treating its suppliers in an objective, fair and business-like manner. Relations between LG-TEK and its suppliers will be “strong, mutually beneficial, and based upon sound business practices, respect, and trust with both parties working toward a common goal.”
- Management Involvement
- Communication/Outreach
- Sourcing Considerations
- Subcontract Management
- Innovative Initiatives
- Training and Development
- Performance Management
- Tracking Progress
- Recognition
LG-TEK Results
As a result of these efforts and others, LG-TEK’s record of Supplier Diversity participation is a proud one that will only get better. Recent history of LG-TEK’s programs overall, including Foreign Language Training to several customers (100% Diversity Participation), Language Translation/Interpretation Services (100% Diversity Participation), Information Technology and Support Services (24% Diversity Participation), and Security Services (32.4%). Supplier Diversity participation has been extensive. LG-TEK continues to achieve excellent results towards the goals established for participation of Diverse Suppliers and maintains a continued commitment to our Diversity program for both our current and future programs.