44% of SoCalGas Procurement Goes to DBE, M/WBE, DVBE, LGBT Firms

Southern California is a leader in small business diversity and outreach to disabled vets.

Source : SoCalGas

April 6, 2024

Author : Patty Allen

The Southern California Gas Company (SoCalGas) is America's largest gas distribution agency, delivering 21 million consumers clean and renewable energy. They are giving back to society by providing clean and safe gas and helping California's historically disadvantaged and small businesses. 

SoCalGas, in the press release, mentioned that they purchased 44% of all goods and services from 618 diverse suppliers. This contribution in FY 2023 has made SoCalGas surpass the California Public Utilities Commission's (CPUC) diverse spending goal for 31 years straight.

The CPUC program analyzes supplier diversity in procurement by utilities and covered organizations. GO 156 establishes voluntary procurement goals of 15% for minority business enterprises (MBE), 5% for women-owned business enterprises (WBE), 1.5% for disabled veteran business enterprises (DVBE), and 1.5% for LGBT business enterprises (LGBTBE) in 2023, and 1.5% for 2024 and later.

In its report, SoCalGas stated that it had spent $2.31 billion in total procurement, of which $1.02 billion was spent with diverse firms. MBE received $716 million, WBEs received $229 million, DVBEs received $74 million, and LGBT firms made $716 million.

SoCalGas has many unique programs through which it has been successful for three decades in helping small and diverse businesses. One such initiative is the Smaller Contractor Opportunity Realization Effort (SCORE). Through this program, they help businesses with income under $5 million opportunities to participate in bids. On winning contracts, they receive on-the-job training, mentoring, and skill development workshops.

"With so many diverse business enterprises in California, we are committed to expanding opportunity as we advance cleaner energy innovations. Our strong supplier diversity program increases competitiveness, enhances innovation, and supports our customers," explained Scott Drury, CEO of SoCalGas.

SoCalGas has invested $6 billion in the last several years with DBEs.

Category : Disabled Veteran Businesses Disadvantaged Business Enterprises LGBTQ Owned Businesses Local Business Enterprises Minority Business Enterprises Minority Women Business Enterprises Women Business Enterprises

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