Overview of the Operational Services Division

This section describes the makeup and responsibilities of the Operational Services Division

Overview

Section 4A of Chapter 7 of the Massachusetts General Laws places the Operational Services Division (OSD) within the Executive Office for Administration and Finance. Section 4A(a) provides for the division to be headed by a state purchasing agent appointed by the Secretary of the Executive Office for Administration and Finance; this purchasing agent has the title of assistant secretary for Operational Services. As of the end of our audit period, OSD had approximately 90 full-time employees.

Chapter 7 establishes the basic functions of OSD:

• to manage and assist in the acquisition of goods, equipment, and services
• to administer a collective purchasing program for the Commonwealth and its political subdivisions (counties, districts, municipalities, authorities, and Commonwealth and Horace Mann charter schools)¹
• to administer and manage copying and printing services
• to manage the use and maintenance of state-owned vehicles
• to administer state and federal surplus property programs
• to administer a Supplier Diversity Office to help businesses owned by minorities, women, and veterans obtain contracts, subcontracts, and financing to sell goods and services to the Commonwealth and its political subdivisions
• to establish a Bureau of Purchased Services (BPS); according to Section 22N of Chapter 7 of the General Laws, this bureau’s purpose is as follows:

The bureau shall have primary responsibility for the implementation and coordination of an efficient and accountable system of procurement, selection, special education pricing, contract administration, program monitoring and evaluation, contract compliance and post audit for any department, agency, board, or commission of the commonwealth which procures or pays for social service programs from providers. . . .

For the purposes of this section, ‘‘social service program’’ shall mean any social, special educational, mental health, mental retardation, habilitative, rehabilitative, vocational, employment and training, or elder services program or accommodations, purchased by a governmental unit . . . but excluding any program or service which is reimbursable under Title XIX of the Social Security Act. ‘‘Governmental unit’’ shall mean the commonwealth and any school district or other political subdivision of the commonwealth.

OSD has established the following units to accomplish its mission:

• Commonwealth Buys (COMMBUYS) Unit—COMMBUYS is a Web-based procurement system of vendors that make goods and services available to Commonwealth agencies and political subdivisions. OSD maintains the system’s website, qualifies bidders, negotiates prices, and provides training and support to users and vendors.
• Sourcing, Training, and Local Government Unit—This unit provides training to municipalities and the Commonwealth’s other political subdivisions on economical procurements, use of COMMBUYS, and specialized topics such as environmental purchasing.
• Office of Vehicle Management—This office purchases vehicles, coordinates maintenance of vehicles, and assigns vehicles for use by Commonwealth employees and officials.
• Print Services Unit—According to its website, this unit “offers on-demand digital printing and copying using the latest in printing, document management technology, and recycled papers and earth-friendly inks” to all state departments, municipalities, and eligible entities, as well as the general public. Printed material and services include letterhead, envelopes, binding, and folding.
• Supplier Diversity Office—This office certifies Massachusetts companies as minority-, woman-, or veteran-owned businesses with principal places of business in the Commonwealth. Certification improves a company’s chances of obtaining a state contract or subcontract.
• BPS (also known as Special Education Pricing & Financial Compliance Unit)—BPS annually updates the UFR Audit & Preparation Manual and the UFR Auditor’s Compliance Supplement to provide guidance to providers and their independent public accountants regarding presentation of Uniform Financial Statements and Independent Auditor’s Reports (UFRs) and applicable fiscal and regulatory policies. OSD also maintains an electronic filing system so that human-service providers and their independent public accountants can submit their UFRs and related materials for BPS’s review. In addition, it sets tuition prices annually for special education programs that are purchased by municipalities and Commonwealth departments from approximately 100 private school providers.
• Office of the General Counsel—This office provides legal counsel and support to OSD units by proposing legislation and interpreting laws, rules, and regulations to help implement, monitor, and administer OSD’s programs and functions.

OSD is financed principally by a fee imposed on contractors that are awarded statewide contracts,² not to exceed 1% of the total value of the contracts, and by billing of state departments for services such as central copying and printing and vehicle use. OSD also receives appropriations for capital improvements, such as purchasing and repairing state vehicles and improving its computer systems, and for other functions such as running the Supplier Diversity Office.

1. In its publication “Questions and Answers about Charter Schools,” the Massachusetts Department of Elementary and Secondary Education states, “There are two categories of charter schools, Commonwealth charter schools and Horace Mann charter schools. Horace Mann and Commonwealth charter schools differ in that a Horace Mann charter school must have its charter approved by the local school committee and, in some cases, the local teacher’s union in addition to the Board [of Elementary and Secondary Education].”
2. According to Section 21.02 of Title 801 of the Code of Massachusetts Regulations, a statewide contract is “a Contract procured on behalf of all Departments for specified Commodities or Services, or both, which may be used by any Department or other entities authorized by OSD.”

Date published:	December 19, 2018