Verizon’s Federal Small Business Program presented to Senator Byron Dorgan

1. Verizon’s Federal Small Business Programpresented to Senator Byron Dorgan _________________________________ Darryl H Dennis Director, Federal Small Business Program

2. Supplier Diversity is a Core Verizon Value and Integral to Our Success A Core Value “..as much as diversity is a business strategy with us, it’s also a moral commitment - an expression of who and what we fundamentally are.” -Ivan Seidenberg, CEO - May 14, 2002 The Business Case • Builds customer loyalty • Stimulates economic growth • Taps into innovation which we need for growth • Supports effort to associate Verizon brand = progress

3. Diversity Is Fully Integrated Into Sourcing Process • Our Business Units have pre-existing supplier diversity objectives. • Sourcing Process Leaders (SPLs) develop annual business plans for their Product Service Stream which include MWDVBE inclusion targets. • A percentage of compensation for upper management is tied to reaching our Supplier Diversity objective to support economic development of local communities (Diversity Performance Index - “DPI”) . • Results are measured on a quarterly basis.

4. The Strategic Sourcing Process • Verizon follows a strategic sourcing process that offers a level playing field to all suppliers. • Verizon views its suppliers as playing a vital role in marketplace success - - providing maximum economic value to customers through the offering of products and services that meet or exceed Verizon requirements. • We have a team of Supplier Diversity managers who interact with minority suppliers across the country. This team supports major national initiatives as well as the local communities. • We run a competitive bid process through our Sourcing Process Leaders (SPLs) and reserve the right to select suppliers who will participate in the procurement process. Verizon cannot and does not promise to transact business with all suppliers.

5. The Strategic Sourcing Process • Strategic sourcing process that offers a level playing field to all suppliers. • Suppliers play a vital role in marketplace success. • Supplier Diversity managers who interact with minority suppliers across the country. • Competitive bid process is run through our Sourcing Process Leaders (SPLs).

6. What Does Verizon Look For? • Proven track record and references • Financial stability • Minimum of 3 years in operation • Core competency in the supplier’s line of business • Quality processes (ISO 9000/TSO 9000 or equivalent) • Electronic Data Interchange (EDI) • E-Commerce functionality • Knowledge of telecommunications industry • Understanding & responsiveness to Request for Proposals (RFPs) • Third-party certification if an MWDVBE supplier

7. What Steps Should Suppliers Follow? Get certified through a third party organization Ensure that your product or service can be used at Verizon Assess compliance with our core requirements Register on the Verizon Supplier Diversity Website Review upcoming RFPs via the website Look into subcontracting or 2nd tier opportunities Contact Supplier Diversity with Verizon Registration number and company information

8. Our Award-winning External Website • Our external site enables • suppliers to: • Register with us • See details regarding RFPs • Contact us • Get third party certification information • Find out about upcoming events • Learn what is required of a Verizon supplier • The URL is: www.verizon.com/supplierdiversity