The American Red Cross Tier 2 Program exists to maximize opportunities for minority-owned, woman-owned, or veteran-owned business enterprises (WDMBEs) to participate as suppliers of products and services to the Red Cross. The Tier 2 Program serves as an enhancement to, and not as a replacement for, existing efforts aimed at increasing meaningful opportunities for WDMBE.
Tier 2 Tracking:
Tier 2 purchasing is a relative term in that it is a function of who is the customer. From the Red Cross perspective, a Tier 1 supplier is a supplier that invoices the Red Cross for goods and services rendered directly by that supplier (Tier 1). A Tier 2 supplier (referencing the customer) is a supplier that invoices the Tier 1 supplier for goods and services rendered.
Tier 1 suppliers must report the amount of money spent on behalf of the Red Cross (Tier 2 direct) with WDMBEs. When direct subcontracting to diverse businesses is not practical, suppliers will allocate and report their overall diverse subcontractor costs (Tier 2 indirect).
DIRECT SPEND:
Purchases that directly support Red Cross business needs. These purchases must be able to be directly traced back to a specific contract or purchase order associated with a diverse supplier.
INDIRECT SPEND:
Spend contracted with diverse suppliers which has been prorated based on supplier sales and/or percentage of a supplier's total revenue. Use this tracking method when you cannot trace WDMBEs expenditures to a specific Red Cross requirement.
Note: The Red Cross utilizes a National Minority Supplier Development Council (NMSDC) approved calculation to get this amount. The Red Cross has partnered with, supplier.io, to host our online Tier 2 tracking system called, TierTracker®. This system supports and enables our prime suppliers to report Tier 2 spend via a single web portal. TierTracker® provides an extremely efficient method of capturing, analyzing, and consolidating diverse spend via a single, user-friendly web portal.
Tier 2 Fiscal Year Tracking Schedule:
The Red Cross must receive your report by the 15th business day of the month that follows the end of each quarter. For example:
- First Quarter is July – September. The report is due October 15.
- Second Quarter is October – December. The report is due January 15.
- Third Quarter is January – March. The report is due April 15.
- Fourth Quarter is April – June. The report is due July 15.