The procurement of goods and services is a vital function within PJM and plays a key role in maintaining the organization’s competitive cost structure. In order to develop and maintain strategic relationships with its suppliers effectively, PJM believes it is important to communicate to new and existing suppliers the guiding principles that are the foundation of its organization.

The mission of the Procurement team is to support approved PJM business strategies by working collaboratively to facilitate and improve the partnership between our internal customers and PJM’s suppliers to achieve the lowest total cost of ownership for all procured materials and services.

Procurement Guiding Principles
Procurement is guided by PJM's Code of Conduct, and dedicates itself to:

• Conducting all activities in a fair, ethical and professional manner
• Creating and maintaining an open, fair and competitive atmosphere that demands excellence
• Challenging its suppliers to provide the highest quality products and services in a timely manner, at competitive prices

It is PJM’s intent to enter into strategic relationships with those suppliers who share PJM’s values and beliefs. PJM is receptive to new suppliers who demonstrate that they will add value to PJM products and services and will support its cost-management strategies.

Procurement Responsibilities
The Procurement team at PJM negotiates all contracts with suppliers of materials and services on a company-wide basis. It strives to rationalize PJM’s supply base by retaining only the highest performers. In addition, Procurement provides guidance and assistance, internally and externally, in the overall acquisition process.

Procurement Authority
Procurement fulfills all the acquisition needs of PJM. As authorized agents of the company, the Procurement team works with internal customers and the various sources of supply to develop specifications, research availability, analyze the comparative value of available products and services, and negotiate contracts.

Note that only PJM agents and corporate officers are authorized to make a procurement commitment.

Supplier Selection
The Procurement team at PJM evaluates both current and prospective suppliers based on areas such as technology, quality standards, financial strength, and total overall benefit to PJM. Procurement encourages both current and prospective suppliers to be proactive in evaluating and implementing cost improvements that will be mutually beneficial to both parties. In addition, an expectation of the company’s supply base is that it is designed for and capable of strong customer support, as well as being a resource for new materials, technologies and methodologies.