PECO Energy Company Contract

Daniel Penn Associates Contracted by PECO Energy, an Exelon Company, to Improve Supplier Diversity Programs

Hartford, CT - May 2002

Daniel Penn Associates (DPA) announced the award of a management consulting contract with PECO Energy, the Philadelphia-based electric and natural gas utility to improve the effectiveness of its supplier diversity programs.

Administered through the Exelon Energy Delivery Support Services Group, supplier diversity has been long established at PECO Energy and its sister company, ComEd. However, changing economic models have caused the companies to consolidate its supplier bases. They are now looking to expand its mix of small and minority owned business (MBE) suppliers and improve the effectiveness of its minority spend reporting. PECO and ComEd are subsidiaries of Exelon Energy Delivery, an Exelon Company.

“Exelon Energy Delivery is focused on a new beginning. We believe the overall program to access and establish business partnerships with MWBE firms can be regenerated. The deliberate outreach will continue to help us in our goal to align the business with the customer communities we serve,” said Craig Adams, vice president, EED Support Services.

DPA will conduct a thorough analysis of PECO's current supplier diversity processes and recommend ways to improve and strengthen its programs. The processes DPA will examine include:

		Overall corporate strategies
		Forecasting
		Supplier outreach and recruitingEvaluating suppliers
		Request for Proposal (RFP) development
		Proposal evaluation and awarding
		Subcontracting
		Monitoring and reporting
		Training for commodity managers

With a hands-on, team approach, DPA will work closely with the Energy Delivery Support Services in Philadelphia and Chicago to conduct the initial assessment phase of the study. DPA will then provide a comprehensive program analysis and recommendations for improvement.

"Improving supplier diversity is a cost-effective, sound business practice that integrates minority spend considerations with core business processes," said Tony Rodriquez, DPA president. "Minority businesses play an important role in supplying companies with critical goods and services. They also provide a key resource in the quest for innovative products and ideas. By strengthening supplier diversity programs, companies are able to gain competitive advantage, infuse fresh thinking into their processes, and support their communities."

PECO Energy delivers electricity to 1.5 million and natural gas to 440,000 customers in southeastern Pennsylvania, while Chicago-based ComEd serves 3.4 million electric customers in northern Illinois. Exelon is a $15 billion energy services firm with utilities based in two of the nation’s five largest metropolitan areas, operates the nation’s largest fleet of nuclear power plants and one of the largest generation portfolios in the U.S., as well as a leading wholesale energy trading operation.

Daniel Penn Associates is a 24-year old, minority-owned management consulting firm serving national and international clients in public utilities, manufacturing, financial services, and government sectors. The firm focuses on helping clients improve operating performance and reduce costs.

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