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SUPPLIER DIVERSITY PROGRAM

Frequently Asked Questions

  1. What is the Supplier Diversity Program?
  2. What is your Web site address and e-mail address?
  3. Are there federal regulations that minority, women and small veteran owned firms need to be aware of in order to do business with Novation?
  4. Does Novation do online purchasing?
  5. How can members find minority, women and small veteran owned businesses?
  6. How can minority, women and small veteran owned businesses participate in Novation's Mentoring Initiative?
  7. Does Novation have a set-aside program for minority, women and small veteran owned businesses?
  8. Does Novation have a set-aside program for socially disadvantaged individuals?
  9. How do businesses become certified with Novation as minority, women and small veteran owned?
  10. Can 8(a) firms do business with Novation?
  11. Does Novation utilize the Federal Government's Standard Industrial Classification (SIC) code?
  12. Does Novation utilize the North American Industry Classification System (NAICS)?

1. What is the Supplier Diversity Program?
Novation's Supplier Diversity Program is a program that is committed to the inclusion of approved minority, women and small veteran (veteran, disabled veteran, service-disabled) business enterprises (MWVBEs) as an integral part of the Novation supply chain management process. The members we serve are committed to economic development in their communities and through the program we will provide an avenue to assist them in developing and using these businesses in their communities where appropriate. Novation has established the program as part of its commitment to supporting MWVBEs that meet high quality standards. The program is intended to enhance Novation's overall mission to provide quality health care to the members we serve.
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2. What is your Web site address and e-mail address?
Novation's public Web site address is www.novationco.com. The Web site contains an area devoted to the Supplier Diversity Program.

E-mails can be sent directly to the program team at supplierdiversity@novationco.com.
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3. Are there federal regulations that MWVBEs need to be aware of in order to do business with Novation?
Novation has developed its own business definition and statement of business classification in conjunction with federal regulations for MWVBEs. This statement of business classification must be signed by these businesses in order to be eligible to participate in the Supplier Diversity Program. MWVBEs must:

  • Provide Novation with a valid certification from one or more of the following agencies:
    • SBA - 8A
    • U.S. Department of Transportation
    • National Minority Supplier Development Council
    • Women's Business Enterprise National Council
    • Any State/Municipality Certification
    • Any State or National Veteran Certificate
    • DD Form 214
    • Other certifications as deemed acceptable by Novation
  • Agree in writing with Novation's definition of a MWVBE supplier or distributor and provide a statement of business classification. (see Agreement of Business Definition and Statement of Business Classification)
  • Meet all Novation business requirements such as purchase reporting, payment of fees, participation in Novation's contract process and, if awarded an agreement, signing a formal contract with Novation.
  • Provide Novation with updated certificates as required.
  • Allow a physical audit of certified minority, woman or small veteran-owned operation.

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4. Does Novation do online purchasing?
In May 2000, Neoforma signed an exclusive 10-year amended agreement to provide e-commerce procurement solutions through Novation. This offering, called Marketplace@Novation®, will allow electronic procurement of Novation's portfolio and the other health care products available to VHA and UHC members.
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5. How can members find MWVBEs?
VHA and UHC members have direct access to Novation active and approved MWVBEs via Marketplace@Novation.
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6. How can MWVBEs participate in Novation's Mentoring Initiative?
To participate in Novation's mentoring initiative, MWVBEs must complete Novation's business definition and statement of business classification and provide a valid copy of their certification as minority, woman or veteran-owned. Novation will also require information on the supplier's products and services and research the possibilities of linking these businesses with current Novation contracted non-program suppliers and distributors. Further definition and parameters around Novation's mentoring initiative will be available in 2005.
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7. Does Novation have a set-aside program for MWVBEs?
Novation may not conduct set-aside bids for these businesses. Based on this, the bid document must be the same for all bidders. Policies and procedures have been created with input from Novation's Supplier Diversity Council, which include the negotiation of program agreements. This will allow certain VHA and UHC members an option of a MWVBE supplier or distributor. In these instances, Novation will clearly communicate to the members the reasons why the contract was not awarded through a general bid process.
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8. Does Novation have a set-aside program for socially disadvantaged individuals?
The Supplier Diversity Program currently includes only MWVBEs.
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9. How do businesses become certified with Novation as MWVBEs?
Novation does not certify businesses.
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10. Can 8(a) firms do business with Novation?
Yes, Novation accepts valid SBA - 8A certifications.
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11. Does Novation utilize the Federal Government's Standard Industrial Classification (SIC) code?
Yes, Novation tracks these codes in its database.
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12. Does Novation utilize the North American Industry Classification System (NAICS)?
Yes, Novation tracks these codes in its database.
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