"Medcalf, Jennifer" <Jennifer.Medcalf@ENRON.com <mailto:Jennifer.Medcalf@ENRON.com>> on 10/12/2001 03:12:28 PM
To:	<bhatch@enron.com <mailto:bhatch@enron.com>>
cc:	"Riley, Cathy" <Cathy.Riley@ENRON.com <mailto:Cathy.Riley@ENRON.com>> 
Subject:	GSA contract


Bill,
It was a pleasure to talk to you today.  I am glad to hear that you are
well.

Just to reiterate our earlier conversation of today.

Currently, under the GSA small business plan submitted by Enron, the
requirements state that the commodity delivered outside of the Enron
delivery is to go 100% to small business concerns.  Of that 100%, 10%
needs to go through a small disadvantaged concern and 5% through a
women-owned.  If A'lones chooses not to get certified for a small
disadvantaged business (SDB), Enron will need find a SDB provider as
well as a women-owned.

Under the current situation, there are limited numbers of SDB's or
women-owned businesses who are currently electricity providers; however
the Enron supplier diversity program is working to create these
opportunities and should be rolling out a program 1/2002.  Since the GSA
contract's small business plan requirements are cumulative for years 4 &
5, it doesn't make a difference when we utilize the suppliers as long as
the percentages are met and within the appropriate timeframe.  Year 4
just started this month.

What is at risk here for A'lones is at least 10% of the contract and
potentially 15%.  If they choose not to get certified it will be our
responsibility to fulfill our contractual obligations to GSA and find
candidates to meet that 15% before the end of year 5.

I will be very happy to work with the A'lones group. I know that they
have been working with us for a period of time but they do have to
understood what is at risk if they do not get certified.  Also, lack of
certification could jeopardize any potential additional business with
Enron.  I do know that the A'lones has been told this.

I believe that we can work an arrangement with A'lones where we can
initiate the contract if everything has been completed and also have a
statement in there that A'lones will do there certification within a
specific time period.  Once again as an accumulative contract this
arrangement would work.

If you have any questions on this, please feel free to give me a call.

Jennifer S. Medcalf
Senior Director, Business & Diversity Development
Global Strategic Sourcing
Enron Corp.
(713) 646-8235