Learn about Statewide Contractor's Administration Fees

In accordance with their contractual agreement with the Commonwealth, Statewide Contractors are required to provide quarterly sales reports and remit associated Administration Fees.

Statewide Contractors are required to pay a quarterly Administration Fee equal to 1% of the total dollar amounts (adjusted for credits and refunds) paid by Eligible Entities purchasing from the associated Contract(s). Statewide Contractors are required to pay the Administration Fee regardless of whether the contract was awarded for statewide or regional coverage.

Note: If the 1% Administration Fee is deductible as a business expense for federal income tax purposes, it also is deductible as an expense for Massachusetts tax purposes.

Quarterly Administration Fee Reporting Requirements

Administration Fee payments are due within 45 days of the end of each reporting quarter. Administration Fee payments also apply to any quarter that the contractor participates on the contract that is less than a full calendar quarter (i.e. if the contract starts after the first day or ends before the last day of the quarter). Statewide Contractors who fail to make prescribed quarterly Administration Fee payments will be considered in breach of contract and subject to intercept.

Quarterly Administration Fee Schedule 

Reporting Period	Due Date
January 1 - March 31	May 15
April 1 - June 30	August 15
July 1 - September 30	November 15
October 1 - December 31	February 15

Multiple contacts for your business – Invoicing Contacts and Primary Sales and SDP Reporting Contacts, identified by your business, will receive Administration Fee notices from the VRM system. Ensure these Contacts are accurate in the VRM system.

How to Pay

Online

Once vendors submit their quarterly Sales Report through the VRM and the report is accepted by OSD, vendors will receive an email from the VRM system advising that their Administration Fee invoice is available for payment. The invoice is calculated based on 1% of reported sales. 

Vendors will log into the VRM system to submit their Administration Fee payment. Vendors may submit payments by Automated Clearing House (ACH) debit, or by credit or debit card (a convenience fee will be assessed for credit card and debit card payments). 

Audit

During the term of the Statewide Contract and for six years following the contract's date, the Operational Services Division, the Office of the Inspector General, or other authorized representatives shall be afforded access at reasonable times to the Statewide Contractor's accounting records, including sales information on any system, reports, or files, so that they may review all records relating to goods sold or services performed pursuant to their agreement with the Commonwealth. If such a review indicates that the Statewide Contractor has materially underpaid OSD, then the Contractor shall remit the underpayment and be responsible for payment of any costs associated with the records review.