Supplier Diversity at Microsoft


April 9, 2009


preferred vendor (n.)
The Preferred level is the basic level where the majority of MSVP vendors are grouped. To be at this level, you must meet the basic criteria:
  • Specific criteria for the category of goods or service being purchased.
  • Maintain a high level of performance (that is, quality of goods and service).
  • Sign a Microsoft® Vendor Program Agreement or MSVP compliant contract.
  • Agree to 2%/10 net 60 payment terms.
  • Agree to abide by the Microsoft Vendor Program Administrative Guidelines.
  • Agree to Microsoft-wide negotiated rates.
  • Submit all invoices through MS Invoice.
  • Accept payment by direct deposit.
  • Agree to report on Minority, Women, Veteran and Service-Disabled Veteran-owned Business Enterprise (MWVBE), Small Disadvantaged Businesses and HUBZone small business subcontracting semi-annually.
  • Agree to target 23% of subcontracting spend, where applicable, to small business enterprises, including 5 percent to Minority (including Small Disadvantaged Businesses), 5 percent to Women, 3 percent to Service-Disabled Veteran, and 3 percent to Veteran-owned businesses, and 3 percent to HUBZone small businesses.
  • Be trained on Microsoft brand strategies as well as in the use of general Microsoft procurement processes such as MS Invoice, MS Inquire, and others.
This level makes up 80 percent of the Microsoft vendor base.

 premier vendor (n.)
Premier vendors must meet all criteria for preferred vendors, plus they must have recommended by Category Managers (CMs) and/or Vendor Account Managers (VAMs). In addition, a premier vendor must meet three out of the following four criteria:
  1. Minimum annual spend of $5 million.
  2. Annual Vendor Performance Management Review and Scorecard.
  3. Strategically critical to Microsoft and meets at least one of the following criteria:
    • Replacing the vendor would be difficult and would significantly impact Microsoft's business.
    • Vendor is critical to the production/shipping/marketing of a Microsoft product.
    • Vendor is critical to helping Microsoft improve its brand/image.
    • Vendor provides a service that directly touches Microsoft customers and/or partners.
    • Vendor provides key products/services to our IT infrastructure.
    • Represents a strategic alliance with Microsoft.
    • Offers preferred pricing to Microsoft
Premier vendors are the featured vendor by category in the e-procurement system accessed by Microsoft employees, and in some cases may be the sole supplier in a category (conversely, note that there may be categories of goods or services for which there is no vendor at the MSVP Premier vendor level). This entire level will include no more than top 20 percent of the Microsoft vendor base.

 Program Administrative Guidelines (n.)
This adjunct to the Microsoft Vendor Program Agreement outlines the requirements Microsoft Vendor Program vendors are expected to follow, including travel policy, vendor code of conduct, pre-placement policy, and Statement of Work (SOW).

 Recognized Certifying Bodies (n.)
These organizations certify enterprises as businesses that are owned, managed, and controlled by minorities, women, or veterans; and HUBZone business concerns. The following list includes some, but not all, major certifying agencies:
  • National Minority Supplier Development Council (NMSDC)
  • Women's Business Enterprise National Council (WBENC)
  • California Public Utilities Commission's (CPUC) Minority/Women Business Enterprise (M/WBE) Clearinghouse
  • U.S. Department of Veteran Affairs (VA) Center for Veteran Enterprise (CVE),
  • United States Small Business Administration (SBA)
States and local governments may also have certifying agencies.