Subcontracting

Subcontracting Policy Statement

As a prime contractor to the federal government, FirstEnergy is required to flow down the Small Business Subcontracting Plan requirements located in Federal Acquisition Regulation (FAR) Clause 52.219-9 to its large Tier I suppliers (i.e., a large majority-owned company awarded a FirstEnergy contract). This regulation requires any large Tier I supplier receiving a FirstEnergy single (one-time) contract with a dollar value in excess of $900,000 (or $2 million for construction) to adopt a subcontracting plan that addresses subcontracting with small, minority-owned, veteran-owned, service-disabled veteran-owned, HUBZone, disadvantaged businesses, and women-owned, businesses, herein referred to as diverse businesses, as referenced in the FirstEnergy Service Company – General Terms and Conditions: Article - Compliance with Laws, Regulation, and Permits.

Tier I suppliers that subcontract with diverse suppliers should report spend with their diverse supplier (Tier II supplier) by the 15th of each month per Tier II Reporting. 

The requirements stated on this webpage are subject to change. For the most current and authoritative requirements, please refer to the Federal Acquisition Regulation (FAR).