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Statewide Contract 1% Administration Fee FAQs

The following is a list of frequently asked questions and answers regarding the Commonwealth of Massachusetts' Statewide Contract 1% Administration Fee.

Associated Questions and Answers

What is the Administration Fee?

The Administration Fee paid by vendors to the Commonwealth is based on 1% of the total dollar amounts, adjusted for credits or refunds, paid by Eligible Entities to the Statewide Contractor based on your statewide contract.

Who has to pay the Administration Fee?

All Statewide Contract vendors are subject to the administration fee.

How is the Administration Fee paid?

Effective January, 2018, all vendors must pay the Administration Fee through a secure, dedicated website. Vendors will receive an email from the OSD Fee Administrator that provides a link to the secure payment website, along with a specific control number that must be used to submit your payment, prior to the Administration Fee due date each quarter. Access OSDs' Job Aid for Administration Fee Online Portal for step-by-step instructions.

Is there a list of eligible entities?

Eligible entities include, but are not limited to:

  • Cities, towns, districts, counties, and other political subdivisions;
  • Executive, Legislative, and Judicial Branches, including all departments and elected offices therein;
  • Independent public authorities, commissions, and quasi-public agencies;
  • Local public libraries, public school districts, and charter schools;
  • Public hospitals owned by the Commonwealth;
  • Public institutions of higher education;
  • Public purchasing cooperatives;
  • Non-profit, UFR-certified organizations that do business with the Commonwealth;
  • Other states and territories with no prior approval by the State Purchasing Agent required; and
  • Other entities when designated in writing by the State Purchasing Agent.

When is the administration fee due?

Quarter Payment Period Quarterly Payment Due Date
First Quarter January 1st - March 31st May 15th
Second Quarter April 1st - June 30th August 15th
Third Quarter July 1st - September 30th November 15th
Fourth Quarter October 1st - December 31st February 15th

The Administration Fee is based on full calendar quarters (Payment Periods) and must be received by OSD on or before 45 days after the last day of the Payment Period (as specified above). Contractors who fail to meet the due dates will be considered to be in breach of contract.

What if I never received payments for that quarter do I still have to report something?

Contractors are required to submit one Statewide Contract Administration Fee Report for each Statewide Contract for each Payment Period, even if no payment is due for the Payment Period. The reporting requirement for $0/non-payment reports must be submitted through the Secure Payment Portal to comply with the contractual reporting requirement.

Is there a form to submit with payment of the Administration Fee?

All payments must be processed through the Secure Payment Center. Payment by check is not allowed unless authorized by your OSD Contract Manager. If such waiver is approved, the following information must be included on/with the check:

  • Statewide Contract Number
  • MA 10 Digit Vendor Code
  • Calendar Year and Quarter
  • If paying with a single check for multiple contracts, please specify the allocation of funds for each contract

What is a Control Number?

The Control Number is the specific number you will receive from the OSD Fee Administrator every quarter to make your payment.

Where can I find my Control Number?

Each quarter, OSD sends an Administration Fee email. The document attachment contained in the email provides the Control Number for that particular quarter, as well as additional information vendors need to accurately process their Administration Fee reporting and payment (Vendor Code, Filing Year, Payment Quarter).

It is imperative that you use the Control Number provided in the quarterly attachment. This number is specific to your contract and it changes every Payment Quarter. If you have more than one contract, you will receive separate notices and unique Control Numbers for each contract. Using the Control Number(s) assigned to your business each quarter ensures your information and payment are properly recorded.

May I pay my fee early without a Control Number?


Does every payment require a Control Number?


What if I lose my Control Number?

If you lose your email notice that contains the Control Number, you may email the OSD Fee Administration at requesting a copy of your notice with the Control Number. Please include your company name, contract number, and vendor code in the email requesting your Control Number.

Do I need to enter information in the portal even if I had no contract activity?

Yes, all activity -- even $0 for a particular quarter – must be reported in the portal. The new system eliminates the need to complete and send a zero-dollar report, and inputting the required information into the portal takes approximately one minute!

Where should I mail my Administration Fee report?

OSD no longer accepts reports or checks by mail. Payments must be made through the Secure Payment Center, including non-payment, $0 reporting.

Where should I email my Administration Fee report?

The Secure Payment Center now allows for all reporting including non-payment, $0 reporting to be done online. All Administration Fee Reporting should be done through the Secured Payment Center.

How do I report activity for more that one contract in the portal?

The new portal allows vendors to process one financial transaction for all contract activity that quarter; however, information for each contract must be entered on separate screens using each contract's dedicated Control Number for the quarter.

Enter the requested information and activity for each contract on a separate screen, selecting Add to record each contract's activity in the system. Inputted information is summarized at the top of the screen. Once all contract activity is entered, vendors select Continue to move to the Payment page.

If I am a vendor on multiple contracts may I make on payment for all contracts?

The Secure Payment Center will enable vendors named on multiple Statewide Contracts to record and remit all quarterly payments in one transaction. Individual control numbers must be used for each contract.

How will I know if my payment was received?

You will receive a payment receipt once your payment has been processed.

Is my information secure?

Yes. The Commonwealth is committed to protecting your personal data. The Commonwealth’s electronic payment application is hosted by nCourt. The nCourt web site is continually monitored for intrusion. Information regarding the transaction is stored in a secure environment behind multiple firewalls and through a dedicated circuit. The consumer’s bank account number is encrypted when stored using AES 256-bit encryption. nCourt also utilizes a secure transmission protocol (VeriSign’s Secure Sockets Layer (SSL)) with 128 byte encryption. SSL is a commonly used protocol for managing the security of an interactive web session on the internet. If the web page has an address that begins with https:// rather than http://, then the page is protected by SSL.

Is it possible for a vendor to request an extension?


Where may I find my contract number?

Your contract number is located in the notice you received - it contains three letters and two-or-three numbers (ex. ABC123).

Where may I find my vendor code?

Your vendor code is in the quarterly Administration Fee notice you received. It is located at the top of the Admin Fee Payment Notice, (ex. Vendor Code [10 digits]).

What if my contract starts or expires in the middle of a quarter?

Quarterly payments will include any periods less than a full calendar quarter if a contract does not start on the first day of a quarter or end on the last day of a quarter.