Section 1. Policy
It is the policy of the Commonwealth to promote access and equity of opportunity in state contracting; and, in furtherance of this policy, to encourage the participation of businesses owned and controlled by service-disabled veterans in all areas of state procurement contracting, including contracts for public construction, design services, and commodities and services.
Section 2. Authority
Pursuant to M.G.L. ch. 7, sec. 61, as amended by Chapter 108 of 2012 and Executive Order 546, the Executive Office of Administration and Finance is charged with responsibility for the development, implementation, and overall management of a program to encourage the participation of businesses owned and controlled by service-disabled veterans in all areas of state procurement contracting, including contracts for public construction, design services, and commodities and services. Consistent with this responsibility, the Executive Office of Administration and Finance has promulgated this Administrative Bulletin and these Guidelines for the effective implementation and administration of the policy, as outlined in Section 1.
Section 3. Service-Disabled Veteran-Owned Business Enterprise Program
There is hereby established a Service-Disabled Veteran-Owned Business Enterprise Program (hereinafter referred to as “the Program”) for the purpose of meeting the objective of the policy as set forth in Section 1. All executive offices, boards, commissions, departments, divisions, councils, bureaus, offices or other agencies within the executive department (hereinafter referred to as "Agency" or "Agencies") are hereby directed to implement the Program pursuant to this Administrative Bulletin and these Guidelines.
Section 4. Definitions
The terms defined in this Administrative Bulletin and these Guidelines shall have the following meanings:
- Awarding agency means each executive office, board, commission, department division, council, bureau, office or other agency within the executive department, including the Massachusetts department of transportation established pursuant to chapter 6C of the General Laws, that enters into a commodities and services contract, design services contract or public construction contract.
- Commodities means an article of trade, goods, products, supplies or information technology resources, including automated data processing and telecommunications hardware, software and systems under the authority of the Operational Services Division pursuant to sections 4A(a) and 22 of chapter 7, sections 51 and 52 of chapter 30 and 801 CMR 21.00.
- Commodities and Services Contracts means contracts, including statewide contracts, for the provision of commodities and services pursuant to sections 4A(a) and 22 of chapter 7, sections 51 and 52 of chapter 30 and 801 CMR 21.00.
- Contract means a legally enforceable agreement between a contractor and an Agency.
- Design Services shall have the same meaning as the term is defined in section 44 of Chapter 7C of the General Laws.
- Design Services Contract shall mean a contract for design services.
- Services means the furnishing of time, labor, effort or specialized skills by a Contractor under the authority of the Operational Services Division pursuant to sections 4A(a) and 22 of chapter 7, sections 51 and 52 of chapter 30 and 801 CMR 21.00. Services shall include operational, professional, maintenance and repair activity not subject to paragraph (D) of subsection 2 of section 44A of chapter 149, chapter 149A, or section 39M of chapter 30 of the General Laws, non-professional, consultant, and Human and Social Services, as well as any other services identified in policies and procedures issued by the Operational Services Division.
- Public Construction Contract means (a) a contract or procurement for the construction, reconstruction, installation, demolition, maintenance or repair of a building or capital facility issued pursuant to paragraph (D) of subsection 2 of section 44A of chapter 149 or chapter 149A of the General Laws or (b) a contract for the construction, reconstruction, alteration, remodeling or repair of any public work issued pursuant to section 39M of chapter 30 or chapter 149A of the General Laws.
- Service-disabled veteran-owned business shall have the same meaning as the term “small business concern owned and controlled by service-disabled veterans” as defined in 15 USC §632.
- Service-disabled veteran-owned business enterprise shall mean a service-disabled veteran-owned business, whose status as such can be verified via the VetBiz Vendor Information Pages Verification Program located at www.VetBiz.gov or the successor vendor information and verification system established by or in contract with the federal government.
- Statewide Contracts means contracts procured on behalf of all agencies for specified commodities or services, or both, which may be used by any agency or other entities authorized by the Operational Services Division.
Section 5. Participation Goal and Program Operations
- Commodities and Services Contracts - In furtherance of the goals and objectives of the Program, commencing July 1, 2013 until such time as the Secretary of Administration and Finance has adopted new participation goals pursuant to Section 6, the participation goal, which shall be expressed in the form of a benchmark, for commodities and services contracts shall be three (3) percent; provided, that said participation goal shall be expressed as an overall annual participation goal; provided further, that the awarding agency shall verify the status of a service-disabled veteran-owned business enterprise pursuant to Section 7 prior to said business enterprise participation on a commodities and services contract; provided further, that the Supplier Diversity Program Plan established pursuant to Operational Services Division policy and direction shall be amended such that said Supplier Diversity Program Plan allows for the inclusion and participation of service-disabled veteran-owned business enterprises in the same manner as said policy and direction provides for the inclusion and participation of minority business enterprises and women business enterprises.
- Design Services Contracts - In furtherance of the goals and objectives of the Program, commencing July 1, 2013 until such time as the Secretary of Administration and Finance has adopted a new participation goal pursuant to Section 6, the participation goal, which shall be expressed in the form of a benchmark, for each design services contract shall be three (3) percent; provided, that said participation goal may be met by the service-disabled veteran-owned business enterprise performing as either a general or prime contractor, a subcontractor, or both; provided further, that the awarding agency shall verify the status of a service-disabled veteran-owned business enterprise pursuant to Section 7 prior to said service-disabled veteran-owned business enterprise participation on a design services contract.
- Public Construction Contracts - In furtherance of the goals and objectives of the Program, commencing July 1, 2013 until such time as the Secretary of Administration and Finance has adopted a new participation goal pursuant to Section 6, the participation goal, which shall be expressed in the form of a benchmark, for each public construction contract shall be three (3) percent; provided, that said participation goal may be met by the service-disabled veteran-owned business enterprise performing as either a general or prime contractor, a subcontractor, or both; provided further, that the awarding agency shall verify the status of a service-disabled veteran-owned business enterprise pursuant to Section 7 prior to said business enterprise participation on a public construction contract.
Section 6. Adjusting Program Goals
- As of July 1, 2016 and every three years thereafter, the Secretary of Administration and Finance, shall review, adjust and adopt revised Program participation goals, which shall replace the Program participation goals established pursuant to Section 5; provided that, in adopting revised Program participation goals, the Secretary shall base his determination on an understanding of the pool of service-disabled veteran-owned business enterprises available to participate in the Program; provided further, that no adjustment shall cause the Program participation goals to be less than three (3) percent.
Section 7. Verification of Service-Disabled Veteran-Owned Business Enterprises
The Program is designed for the participation and inclusion of service-disabled veteran-owned business enterprises on commodities and services contracts, design services contracts and public construction contracts. Evidence of a service-disabled veteran-owned business enterprise being eligible for participation and inclusion in the Program shall be demonstrated via its listing as a service-disabled veteran-owned small business within the VetBiz database at the time said business seeks to participate on a commodities and services contract, design services contract or public construction contract; provided, that it shall be the responsibility of the awarding agency to verify the status of the service-disabled veteran-owned business enterprise via said VetBiz database, located at www.VetBiz.gov. Only a service-disabled veteran-owned business enterprise identified as a service-disabled veteran-owned small business via the VetBiz database shall count towards meeting the Program participation goal.
Section 8. Capacity Development
The Massachusetts Supplier Diversity Office (“SDO”) is hereby designated the state office responsible for providing capacity development services to service-disabled veteran-owned business enterprises. The capacity development services shall include the same scope of services that the Operational Services Division and/or the Supplier Diversity Office provide to minority business enterprises and women business enterprises. The Supplier Diversity Office is hereby directed to collaborate with other public and private sector entities, when feasible and appropriate, to provide capacity development services to service-disabled veteran-owned business enterprises.
Section 9. Program Oversight and Enforcement
The Executive Office of Administration and Finance shall be responsible for the overall development, implementation, management, monitoring, and enforcement of the Program. The Assistant Secretary for Access and Opportunity shall be designated within ANF for ensuring program coordination, monitoring contract compliance across all Agencies, addressing potential program violations, and coordinating Agency enforcement activities. The Assistant Secretary may, subject to the approval of the Secretary of Administration and Finance, develop additional Program guidance to ensure the successful implementation and maintenance of the Program.
The highly placed individual, who has been identified and selected within each secretariat and agency to serve as the Supplier Diversity Officer pursuant to Executive Orders 524 and 533, shall be charged with secretariat/agency management of the Program. Each Secretary and Agency head may designate such other personnel as they deem necessary to support the implementation, monitoring, and enforcement of the Program and the coordination of those functions. It is the intention of this Administrative Bulletin and these Guidelines that the principles underlying the Program be incorporated into the fabric of general procurement practices in the executive branch.
Section 10. Reporting Information and Requirements
Office of the Comptroller:
The Comptroller or his designee shall take any and all actions necessary and appropriate to create a designation of service-disabled veteran-owned business enterprise or “SDVOBE” within the Commonwealth’s accounting system, known as the Massachusetts Management Accounting and Reporting System (“MMARS”) or its successor system. Said designation will be used to assist in the verification of participation on commodities and services contracts, design services contracts and public construction contracts. Each agency, in accounting for the participation of such service-disabled veteran-owned business enterprises, shall input the required service-disabled veteran-owned business enterprise designation into MMARS or its successor system as prescribed by the Comptroller.
Commodities and Services Contracts Outcomes:
In order to create an effective and efficient reporting system relative to the implementation of the Program and for the inclusion of service-disabled veteran-owned business enterprises on commodities and services contracts, the quarterly and annual reports required pursuant to Section 5 of Executive Order 524 shall include data regarding the outcomes of the Program. Said quarterly and annual reports issued pursuant to this Section and Section 5 of Executive Order 524 shall function to meet the annual reporting requirement of Executive Order 546.
Public Construction Contracts and Design Services Contracts Outcomes:
In order to create an effective and efficient reporting system relative to the implementation of the Program and for the inclusion of service-disabled veteran-owned business enterprises on design services contracts and public construction contracts, the quarterly and annual reports required pursuant to Section V of Administration and Finance Bulletin #17 shall include data regarding the outcomes of the Program. Said quarterly and annual reports issued pursuant to this Section and Section V of Administrative Bulletin #17 shall function to meet the annual reporting requirement of Executive Order 546.
Section 11. Additional Guidance
The Secretary of Administration and Finance, or his designee with the approval of the Secretary of Administration and Finance, for the effective implementation of the Program may issue additional guidance, from to time, in the form of Administrative Notices which shall function as Addenda to this Administration Bulletin and these Guidelines.