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MICHELS CORPORATION - STATEMENT OF QUALIFICATIONS <br />subcontractors prior to executing any subcontracts or professional services agreements. The <br />subcontractors complete a qualification questionnaire that gathers a wide variety of information, <br />including general contact information, company status (e.g. entity type, DBE/SDVOB/MBE/WBE <br />status, etc.), safety statistics, insurance information, data demonstrating financial stability, <br />description of equipment fleet, applicable work license numbers, description of quality <br />assurance processes, and trade references. Our Power and Pipeline Divisions also use <br />ISNetworld to prequalify their subcontractors. <br />10 Purchasing and Supplier Diversity <br />10.1 Purchasing Department <br />Michels' purchasing department is comprised of 40 full-time employees dedicated to <br />strategically sourcing and procuring equipment, material and tooling. To effectively manage <br />average annual spends of more than $600 million, Michels leverages a vast network of national <br />accounts with suppliers to maximize purchasing power and, when possible, source from <br />suppliers located near the project site to minimize transportation cost and risk. For questions <br />regarding our purchasing experience and capabilities, please contact Director of Supply Chain <br />Kevin Schaefer at 920.583.1460 or kschaeLe gLmichels.us. <br />10.2 Local Spends and Supplier Diversity <br />Our core values and commitment to corporate social responsibility, it is Michels' policy to <br />provide SB/DBE/SDVOB/MBE/WBE/LBGTQ firms the maximum practicable opportunity to <br />participate in the projects we undertake. Michels has achieved based on specific projects 8%- <br />40% use of diversified minority businesses. To implement this policy we contact federal, state <br />and/or local offices of SB/DBE/SDVOB/MBE/WBE/LBGTQ business affairs, search local <br />SB/DBE/SDVOB/MBE/WBE/LBGTQ databases, utilize resources made available by the project <br />owner(s) and stakeholders, engage local recruiting specialists, and/or utilize our internal vendor <br />databases to engage qualified firms. Our SB/DBE/SDVOB/MBE/WBE/LBGTQ spends in 2017 <br />and 2018 averages $54 million. <br />We continually grow our SB/DBE/SDVOB/MBE/WBE/LBGTQ databases by attending regular <br />networking events and through our partnerships with organizations such as Minority Supplier <br />Development Council, Wisconsin Procurement Institute and other PTAC's and the Society of <br />American Military Engineers. Through these and other partnership, Michels participate in <br />several supplier diversity symposium nationally throughout year to enhance awareness of and <br />increase business opportunities for SB/DBE/SDVOB/MBE/WBE/LBGTQ firms. <br />In addition to promoting supplier diversity, Michels also makes a concerted effort to engage <br />local vendors whenever possible. Not only does this benefit the project by minimizing <br />transportation costs and risks, but it shows that we are committed to adding value to the <br />communities in which we work and have projects. <br />38 <br />