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INTEGRATINGSUPPLYCHAINMANAGEMENTANDSUPPLIERDIVERSITYEnsureoperationalefficiencyandreliableservicetocustomerssuppliersandallstakeholdersthroughtransparentequitableandresponsibleprocurementpracticesthatinvolveinformandreflectthecommunityweserve.StrategiesInitiativesInFY2014weinitiatedanaggressivetransformationofWSSCssupplychainwhichisdesignedtodrivedownWSSCscostofdoingbusiness.ActivitiesincludedlaunchingStrategicSourcingTeamsSSTtoincorporatestrategicsourcingbestpracticesandnegotiationsmanagementintoourprocurementprocesstherebyimprovingourprocurementefficienciesidentifyingsupplychainrisksimprovingourcontractadministrationandmonitoringcostreductionandcostavoidanceintheprocurementofgoodsandserviceswithinoursupplychain.ThroughJune2014ourreturnoninvestmentROIofthetransformationstandsatbetterthan400.AswebegintoseeresultsofourstrategicsourcingeffortsweexpectanevengreaterROI.OnthesupplierdiversityfrontWSSCsspendingMBEpaymentswithminoritybusinessenterprisesuppliersincreasedbyover8inFY2014.AwardsaleadindicatoralsoincreasedinFY2014.Whilewedidnotmeetouraspirationalspendgoalof26withMBEswecontinuetoexpandourmarketplacebyattractingnewfirmstodobusinesswithusandweanticipategreaterspendtoMBEsinFY2015.INTEGRATINGSUPPLYCHAINMANAGEMENTSUPPLIERDIVERSITYFY12FY13FY14RESULTSProcurementandSLMBEImproveMinorityBusinessEnterpriseMBEPaymentsPercentage.ImproveMinorityBusinessEnterpriseMBEAwardsPercentage.Improveprocurementprocesscycletimeandenhanceprocurementpractices.IncreasenewregistrantsinWSSCsCentralizedBiddersRegistrationSystemCBR.IncreasenewMinorityBusinessEnterpriseSLMBEregistrants.InFY2014theCommissionspent99.9million20intotalcontractpaymentswithMWBEfirmsascomparedto92.1million20inFY2013.TheFY2014levelofspendingwas7.8millionmorethanFY2013.InFY2014theCommissionawarded42.3millionmoretoMWBEsthaninFY2013whichamountedto228.5million23asopposedto186.3million25inFY2013.WSSCstotalcontractawarddollarsof974.3millionincreasedby228milliondollarsincomparisontothecontractawards746.3millioninFY2013.InFY2014wecontinuedtoenhanceourprocurementpracticesbyinitiatingoursupplychaintransformationincludingstrategicsourcingandcontractmanagementtraining.Weconducted21educationoutreachsessionsforsuppliersincludingoursignatureHowtoDoBusinessWithWSSCevents.InFY2014weexceededourtargetof336newregistrantsby511registrants.Thisrepresents252ofouroriginaltarget.InFY2014wemissedourtargetof200newSLMBEregistrantsby117or58.TotalSLMBEregistrantsinourCBRattheendofFY2014were733.ENSURINGSECURITYANDSAFETYProtectourpeopleourbusinessandourcommunitythroughproactiveplanningemergencypreparednessandutilizationofeffectiveriskmanagement.StrategiesInitiativesTheoperationalresiliencyofourenterpriseiscriticaltoprovidingqualityuninterruptedservicetoourcustomers.InFY2014wecompletedourCommission-wideVulnerabilityAssessmentVAandalsocompletedmajormilestonesinourbusinesscontinuityplanninginitiative.BothoftheseinitiativeswerelaunchedinFY2013forensuringcontinuityofoperationsandprotectingourfacilitiesanddistributionsystemfromnaturalandman-madedisasters.FromanemployeeperspectivewecontinuedtofocusondriveraccountabilityandemployeesafetyinFY2014.WSSCsOSHAreportableaccidentsareconsistentlybelowthenationalaverageforthewaterandwastewaterindustry.AsaresultWSSCwaspresentedwiththe2014AWWAWendellR.LaDueSafetyAwardforoutstandingperformanceforourstateoftheartsafetyprogram.Thisawardrecognizesdistinguishedwaterutilitysafetyprograms.EmployeeandPublicSafetyImproveemployeehealthandsafety.OSHAreportableinjuriesdecreasedbymorethan12fromFY2013to2014.SinceFY2010OSHAreportableinjurieshavedecreasedalmost23.ENSURINGSECURITYANDSAFETYFY12FY13FY14RESULTSMBESpendingTransformationROICumulativeFY2012TotalWSSCSpend365.7millionMBESpend102.3millionFY2013TotalWSSCSpend465.1millionMBESpend92.1millionFY2014TotalWSSCSpend491.4millionMBESpend99.9million14501SweitzerLaneLaurelMaryland20707ThenumberusedhereisbasedontheauditedvalidatedFY2014SLMBELegislativeReport.PerformanceMeasurementSystemdatamaydifferslightlyduetotheutilizationofunauditedsourcedata.CostReductions5.1millionInvestment1.2million