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
Statewide Contractors are required to submit one Statewide Contractor Administration Fee Report for each Statewide Contract Payment Period and they may satisfy this requirement by electronically submitting their payment via the Secure Payment Center.
Important Update: Administration Fee Reporting Process Changing with FY23 Q1 Reporting
As the Operational Services Division communicated on May 5, 2022, OSD is working with our Vendor Report Management (VRM) provider to build an interface to enhance the VRM portal to include Administration Fee reporting and payment through the Secure Payment Center. The new interface will enable Statewide Contract Vendors to log into one portal - the VRM system - to submit quarterly Sales and Supplier Diversity Plan reports, as well as Administration Fee Payments.
OSD is on track to launch the new Administration Fee reporting process in October 2022 beginning with FY23 Q1 reporting (July 1, 2022 - September 30, 2022).
Refer questions to the OSD Admin Fee Administrator.
Additional Resources for
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.