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Supplier Diversity at Microsoft
About Microsoft > Procurement > Supplier Diversity

Microsoft Vendor U.S. Subcontracting Spend (Tier 2) Reporting

Procurement

Microsoft is committed to helping small and diverse businesses succeed and grow. We purposefully contract as much business as practical to small and diverse organizations, with the goal of contracting at least 23 percent to small businesses. In addition, we have established the following small business diversity subcontracting goals:

Type of small business Target percentage of Microsoft subcontracts
HUBZone Three percent
Minority-owned Five percent
Service-disabled veteran-owned Three percent
Veteran-owned Three percent
Woman-owned Five percent


Microsoft vendors are obligated to provide the maximum practical opportunity for the above diverse business concerns to participate in supporting Microsoft contracts.

Required Quarterly Reports

Vendors must report the amount of money spent on behalf of Microsoft (Tier 2 direct) with minority-owned, woman-owned, or veteran-owned business enterprises (MWVBE), small disadvantaged businesses, and HUBZone small businesses. When direct subcontracting to diverse businesses is not practical, vendors will allocate and report their overall diverse subcontractor costs (Tier 2 indirect). The costs should be prorated, based on percentage of revenue method.

Quarterly Tier 2 reports are not required if the vendor qualifies as a small business as defined under the current Small Business Administration Table of Size Standards.

Please use the Microsoft Tier 2 report template when preparing your reports. Microsoft must receive your report by the last business day of the month that follows the end of each quarter, as illustrated in the following table.

Microsoft Fiscal Year

Quarter Months Report Due
First quarter July–September October 31
Second quarter October–December January 31
Third quarter January–March April 30
Fourth quarter April–June July 31


Quarterly Tier 2 Reporting Links


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