Supplier Diversity: Second Tier/
Subcontracting Program

Workplace | Community | Partners/Suppliers

We are dedicated to using minority-owned (MBE), women-owned (WBE), lesbian, gay, bisexual, transgender-owned (LGBT) and small business suppliers in our purchasing and business relationships. In an effort to demonstrate our commitment, we have established a 2nd tier subcontracting program for our prime suppliers. 2nd tier subcontracting opportunities can be achieved two ways:

Directly - purchases that directly support our business needs. These purchases must be able to be directly traced back to a specific contract or purchase order with a diverse supplier.

Example: Print Company, a supplier to Aetna, purchases all their paper through a diverse supplier. The expense of this paper is considered a direct 2nd tier purchase.

Indirectly - purchases that support a supplier’s overall business strategy. These purchases are not made specifically in support of our business. We use an approved NMSDC calculation to get this amount.

Example: Our supplier, Allstar Event Planning, annually spends $100 million with diverse suppliers. Aetna represents 1% of Allstar’s business expense. The 2nd tier spend with Allstar Event Planning would be ($100 million X 1%) $1 million. Under the indirect method, spend cannot be traced back to a specific supplier in direct support of Aetna’s business.

Subcontracting Plan 

We may ask you to complete a subcontracting plan after you have been awarded Aetna's business. The subcontracting plan should include, but not be limited to:

  • The estimated percentage of total subcontracting dollars your company intends to spend annually with MBE/WBE/SBE/LGBT suppliers across your entire organization or in support of our business, whichever applies
  • Your corporate plan for taking specific steps to progressively increase your utilization of MBE/WBE/SBE/LGBT across your business and in direct support of Aetna business. The principal goods and services to be subcontracted with MBE/WBE/SBE/LGBTs
  • A statement agreeing to maintain all necessary documents and records that support your efforts to achieve the estimated MBE/WBE/SBE/LGBT subcontracting goals if your company is awarded the business 
    •  Identify the individual responsible for administering this subcontracting plan and submitting quarterly participation reports
    • Quarterly reports (direct, indirect, or both) are due four to six weeks after the close of each quarter.

For help with our Second Tier Subcontracting Plan or Reporting, contact Supplier Diversity at supplierdiversity@aetna.com or 860-273-1000.