Last updated: February 12, 2020
The Automobile Club of Southern California’s Supplier Diversity Program
At the Automobile Club of Southern California, diversity is reflected in our employees, members, and suppliers. We are committed to driving diversity in our growing supplier base and offering equal access to purchasing opportunities while building value-added business relationships. Our Supplier Diversity Program recognizes and supports minority, women-owned, and disabled veteran-owned business enterprises that provide quality, value-driven products and services.
Who we are
The Automobile Club of Southern California is an affiliate of the American Automobile Association. We provide travel services, emergency road services, and insurance services in Southern California and numerous states including Alabama, Arkansas, Hawai‘i, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Mississippi, Missouri, New Hampshire, New Mexico, New York, Ohio, Pennsylvania, Texas, Vermont, and Virginia.
To be eligible to participate in our Supplier Diversity Program, a company must present certification as a minority-owned, women-owned, or disabled veteran-owned business.
- Minority Business Enterprise (MBE) – “Minority business enterprise” means a business enterprise, physically located in the United States or its trust territories that is at least 51 percent owned by a minority group or groups. Or, in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more minority groups, and whose management and daily business operations are controlled by one or more of those individuals. “Minority” includes African Americans, Hispanic Americans, Native Americans, and Asian Pacific Americans who provide proof of United States citizenship or legal resident alien status.
- Women Business Enterprise (WBE) – “Women business enterprise” means a business enterprise physically located in the United States or its trust territories that is at least 51 percent owned by a woman or women, or, in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more women, and whose management and daily business operations are controlled by one or more of those individuals who provide proof of United States citizenship or legal resident alien status.
- Disabled Veteran Business Enterprise (DVBE) – The law defines a disabled veteran as a United States military, naval or air service veteran with a service-related disability of at least 10 percent. DVBE is a sole proprietorship or partnership of at least 51 percent owned by, stock owned, and/or at least in which a joint venture’s management, control, and earnings are held by one or more disabled veterans. Its home office is located in the United States and is not a branch or subsidiary of a foreign corporation, firm, or business, and is certified by the California State Department of General Services.
Several organizations assist companies with the certification process to become a diverse supplier. If you meet the criteria above and are interested in becoming certified, you can find additional information through:
- California Department of General Services
- National Minority Supplier Development Council, Inc.
- Southern California Minority Supplier Development Council
- Women’s Business Enterprise Council West
- Women’s Business Enterprise National Council
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Disclosure of certain travel supplier contract standard terms
Below is a summary of certain American Automobile Association (AAA) standard contract terms which generally apply to California travel suppliers working with Automobile Club of Southern California. This is not a comprehensive list of all applicable contract terms. The full, final contract must be reviewed for complete details.
Travel Supplier Contract
- This contract has Financial Stability Requirements to obtain and maintain “Preferred Travel Supplier” status. For Preferred Travel Suppliers, AAA club and AAA travel agencies will promote such Supplier to their clients on an equal or more favorable basis than they promote any other like travel supplier.
- Supplier must provide security for funds (Letter of Credit as described below) or submit to financial review.
a. An initial, quarterly and annual confidential financial review must be conducted by an independent third party. Supplier must pay for travel costs of the annual review: Up to $10,000 for the first year and $5,000 each subsequent year. Financial statements, federal tax returns and accounts receivable and payable aging reports will be reviewed, and banking/financial institutions contacted.
b. A Financial Risk Assessment rating is assessed based on the stability of Supplier and its ability to meet financial commitments. If such rating falls to the “unacceptable” level, Supplier will have 21 days to provide security acceptable to AAA, which may include a Letter of Credit to cover 100% of average funds held by the Supplier for future services or travel, with a certain minimum dollar amount of security based on the value of sales. Supply must also escrow 100% of consumer/club funds in advance of travel. AAA shall recalculate the required security amount on an annual basis. Should Supplier fail to provide acceptable security, AAA has the right to immediately terminate the Contract.
c. At any time during the term of the Contract that the financial stability of Supplier comes into question, AAA has the right to demand adequate assurances from Supplier regarding both its financial viability to conduct business and provide complete protection of funds of AAA members or customers that have booked travel with Supplier through AAA.
a. Expiration: The Contract will terminate at the expiration of the term, unless terminated earlier under the provisions of the Contract.
b. Breach: A party must remedy a breach of contract within 30 days of written notice by the other party. The nonbreaching party has the right to terminate with an additional 90 days’ written notice if the other party fails to cure within such 30 day period.
c. Service Level or Benefit Decrease: Supplier may be terminated immediately upon written notice if AAA determines that either the service level provided by the Supplier or the benefits provided by Supplier for members are decreased to an extent that AAA in its sole discretion determines that Supplier no longer qualifies as an Preferred Travel Supplier under the Contract.
d. Bankruptcy: Contract may be terminated upon the election of, and in the sole discretion of, AAA upon occurrence of any of the following with relation to Supplier: (1) a petition filed in bankruptcy, (2) insolvency, (3) a general assignment is made for the benefit of creditors, (4) Supplier’s failure to comply with “Preferred Travel Supplier” financial stability provisions, or (5) any change in the status of insurance provided pursuant to the Contract.
e. Brand Reputation: AAA determines, in its sole discretion, that an action taken by Supplier (1) is likely to cause damage to the AAA brand, or (2) Supplier has taken a position publicly that conflicts with a stated position of AAA or any AAA club. AAA may immediately terminate the Contract within a maximum of 24 hours of notice if Supplier fails to cure to AAA’s satisfaction.
a. Participating Hotels: All hotels who pay a fee for a sponsored listing (Participating Hotels) receive preferential listings in the online sort order of hotels.
b. AAA/CAA Lodging Partners (hotels that contract with AAA or Canadian Automobile Association (CAA) as a preferred provider): AAA will follow the business rules below and apply a popularity index for sorting within the AAA/CAA Lodging Partner properties.
c. Ranking Order/Business Rules:
1. Participating Hotels who are AAA/CAA Lodging Partners
2. Participating Hotels who are not AAA/CAA Lodging Partners
3. AAA/CAA Lodging Partners who are not Participating Hotels
4. Hotels that are neither AAA/CAA Lodging Partners nor Participating hotels
d. Sponsored listing prices are based on market size and length of contracted term.