What is Subcontracting?
Subcontracting is a general term used when your company either outsources a part of your contract with PG&E to another firm or when your company purchases products or services that will be used in fulfilling your contract with PG&E. For example, if your company purchases a connector from a minority-owned business and then uses it to manufacture widgets sold to PG&E, you are subcontracting. In this example, if the connector is 10 percent of the price of the widget, your subcontracting spend would qualify for 10 percent of minority-owned business credit. Only purchases directly connected to the products or services sold to PG&E can be reported. We call this “contract specific” subcontracting.
