Supplier Diversity Definitions

Minority-Owned Business Enterprise (MBE)

An independent business that performs a commercially useful function and is at least 51 percent owned and controlled by one or more minority persons of African American, Hispanic American, Asian-Pacific American, or Native American ethnicity.

Woman-Owned Business Enterprise (WBE)

An independent business that performs a commercially useful function and is at least 51 percent owned and controlled by one or more women.

Disabled-Owned Business Enterprise (DBE)

An independent business that performs a commercially useful function and is at least 51 percent owned and controlled by one or more disabled individuals pursuant to the federal Americans with Disabilities Act.

Veteran/Disabled Veteran Business Enterprise (VDBE)

An independent business that performs a commercially useful function and is at least 51 percent owned and controlled by one or more veterans/disabled veterans who have served in the active military and have been discharged under conditions other than dishonorable.

Small Business Enterprise (SBE)

An independent business that performs a commercially useful function; is not owned and controlled by individuals designated as minorities, women, veterans, or physically challenged; and has gross annual sales that do not exceed $2 million.

First-Tier Purchasing

A first tier supplier is a supplier that invoices the customer for goods and services rendered directly by that supplier.

Second-Tier Purchasing

Second-tier purchasing is a relative term in that it is a function of who is the customer. A second-tier supplier is a supplier that invoices the first-tier supplier for goods and services rendered.