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Supplier Diversity
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1 Purpose

Identify and develop successful business relationships with minority, women-owned and small business concerns to meet our business objectives and to foster economic growth within the communities in which these suppliers reside. Includes assuring compliance with Federal Government (SBA) obligations as a federal contractor.
2 Policy
Use qualified suppliers from all segments of the business community. The company advocates the development and use of small business enterprises, business concerns controlled by socially and economically disadvantaged individuals and women-owned businesses as contractors and subcontractors and for the purchase of goods and services.
3

 Goals
Provide maximum practical opportunities for minority, women-owned and small business enterprises to become and remain suppliers of Merck, resulting in increased expenditures with these suppliers.
4 Scope
All Merck locations in the United States and Puerto Rico, including wholly owned subsidiaries.
5 Definitions
  1. Small Business Enterprise (SBE): A business independently owned, operated and in accordance with the definitions and size standards established by the SBA, available at http://www.sba.gov/size. The most common size standards are as follows:
    1. 500 employees for most manufacturing and mining industries,
    2. 100 employees for all wholesale trade industries,
    3. $6 million for most retail and service industries,
    4. $28.5 million for most general & heavy construction industries,
    5. $12 million for all special trade contractors,
    6. $0.75 million for most agricultural industries.
    About one-fourth of industries have a size standard that is different from these levels. Contact a Size Specialist at your nearest SBA Office of Government Contracting, or the Office of Size Standards at (202) 205-6618 with questions.
  2. Minority Business Enterprise (MBE): An organization that is:
    1. at least 51 percent unconditionally owned by one or more individuals who are both socially and economically disadvantaged. In the case of a publicly owned business, at least 51 percent of its stock must be unconditionally owned by one or more socially and economically disadvantaged individuals such as African Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans and Subcontinent Asian Americans
    2. whose management and daily business operation is controlled by one or more such individuals.
  3. Small Disadvantaged Business Concern (SDB): A minority business enterprise (MBE) that is an SBC. A Small Disadvantaged Business must be SBA certified.
  4. Woman-Owned Business Enterprise (WBE): An organization that is at least 51 percent owned, controlled and administered by a woman or women who are U.S. citizens. (Note: Controlled is defined as exercising the power to make policy decisions. Operated is defined as actively involved in day-to-day management.)
  5. Small Women-Owned Business Concern (WOSB): A women-owned business enterprise (WBE) that is an SBC.
  6. Historically Underutilized Business Zone Small Business Concern (HUBZone): A qualified HUBZone small business concern is an organization that is a small business enterprise (SBE), is located in an historically underutilized business zone (HUBZone), is owned and controlled by one or more U.S. citizens and has at least 35 percent of employees residing in a HUBZone. A HUBZone is an area that is located in one or more of the following:
    1. A qualified census tract (as defined in section 42(d)(5)(C)(i)(1) of the Internal Revenue Code of 1986);
    2. A qualified non-metropolitan county that is: not located in a metropolitan statistical area (as defined in section 143(k)(2)(B) of the Internal Revenue Code of 1986), and a) in which the median household income is less than 80 percent of the non-metropolitan State median household income, or b) that based on the most recent data available from the Secretary of Labor, has an unemployment rate that is not less than 140 percent of the statewide average unemployment rate for the State in which the county is located;
    3. Is within the external boundaries of an Indian reservation.
  7. Veteran Business Enterprises (VBE)
    1. A veteran who has served in the active military, naval or air services and who was discharged or released under conditions other than dishonorable. Active duty service is defined as active duty in the United States Army, Air Force, Navy, Marine Corps, or Coast Guard for any length of time and at place home and abroad.
    2. To declare your firm as a veteran owned business, a veteran or group of veterans must have 51% ownership and control of the business.
  8. Disabled Veteran Business Enterprise (DVBE)
    1. Any veteran that was disabled during active duty service and received a rating letter qualifies for being classified as a Disabled Veteran Business Enterprise.
    2. A similar 51% ownership and control of the business is applied to businesses owned by service-disabled veterans.
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