Second Tier Purchasing

Second Tier purchasing is a relative term in that it is a function of who is the customer. From a customer’s perspective, a first tier supplier is a supplier that invoices the customer for goods and services rendered directly by the supplier. A Second Tier supplier is a supplier that invoices the first tier supplier for goods and services rendered.

Direct Spend Second Tier Purchasing refers to Second Tier supplier products and services which can be identified in support of customer requirements.

Indirect Spend Second Tier refers to products and services which can not be identified in support of a specific customer requirement.

Second Tier purchasing is beneficial in that it maximizes opportunities for small, small disadvantaged, veteran-owned small business, service disabled veteran-owned small business, and women owned businesses to participate as suppliers of goods and services.  The emphasis on second tier suppliers compliments the other initiatives to create a more diverse vendor base from which to select the most competent and able supplier.  Small and disadvantaged vendors are still encouraged to pursue opportunities with the University as first tier suppliers.