Associated Questions and Answers
Important Changes Effective October 2022 - New Administration Fee Reporting Process and Revised Deadlines for Sales Reporting
Effective October 2022, Statewide Contract Vendors will use the VRM system to submit both their quarterly Sales Reports, as well as Administration Fee payments. This new process will affect FY23 Q1 (July 1, 2022 - September 30, 2022) Administration Fee payments.
Revised Deadlines for Sales Reporting
Note that Sales Reporting deadlines will be revised beginning with FY23 Q1 reporting to accommodate the new Administration Fee reporting process. Sales Reports will be due 30 days after the conclusion of the calendar quarter: January 31, April 30, July 31, and October 31.
Administration Fee payment due dates will remain unchanged - 45 days after the conclusion of the calendar quarter: February 15, May 15, August 15, and November 15.
If you have questions, contact the OSD Help Desk at 888-MA-State (627-8283).
Administration Fee Questions and Answers
What is the Statewide Contract Administration Fee?
In accordance with their contractual agreement with the Commonwealth, Statewide Contract Vendors are required to pay a quarterly Administration Fee equal to 1% of total dollar amount, adjusted for credits or refunds, paid by Eligible Entities purchasing from the associated Statewide Contract.
Who has to pay the Administration Fee?
All Statewide Contract vendors are subject to the administration fee.
Why is the Administration Fee Reporting process changing?
The new Administration Fee reporting process streamlines the quarterly reporting process: Sales Reports and Administration Fee payments will be submitted through the Vendor Report Management (VRM) system.
When does the new reporting process take effect?
Statewide Contract Vendors will submit Administration Fee payments through the VRM system starting with the Q1 FY23 reporting quarter (July 1, 2022 – September 30, 2022).
Note: Quarterly Statewide Contract reporting is based on a fiscal year beginning July 1 and ending June 30.
When are Administration Fee reports due?
As before, Administration Fee payments are due within 45 days of the end of each reporting quarter.
| 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 |
Two contacts for your business – the Invoicing Contact and the Primary Sales and SDP Reporting Contact – will receive Administration Fee notices from the VRM system notifying them that the invoice is available for payment. Ensure these contacts are accurate in the VRM system.
Contractors who fail to meet the due dates will be considered to be in breach of contract.
How do staff who submit my Administration Fee payments get access to the VRM portal?
Statewide Contract Vendors may add Users and classify them as Invoicing Contacts in the VRM system by following these instructions. Businesses may designate two Users as Invoicing Contacts so they receive Administration Fee notifications from the VRM system.
What is the new process to submit Administration Fee payments?
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. As before, vendors may submit payments by Automated Clearing House (ACH) debit or by credit card (a 2.79% convenience fee will be assessed for credit card payments). Vendors no longer will need a Control Number to submit their Administration Fee payments.
My Administration Fee staff are not familiar with the VRM system. How will they get trained?
OSD has prepared a pre-recorded webcast on the new Administration Fee process. Vendors are asked to watch this short tutorial for an overview of the VRM portal and the new process to submit Administration Fees through the VRM system. OSD also offers several job aids on the Administration Fee payment process. Vendors who have questions may contact the OSD Help Desk at 888-MA-State (627-8283).
How are Administration Fee Invoices calculated?
Invoices are calculated based on 1% of total sales reported by vendors for the quarter. Invoice amounts are rounded to the nearest cent.
What should I do if my Administration Fee invoice is incorrect?
Adjustment and deferral requests may be submitted through the VRM system. Vendors must provide the Deferral or Adjustment amount requested, a detailed explanation, and supporting documentation. Requests are reviewed by OSD, and vendors receive notifications through the VRM system regarding next steps.
Deferral Example: A vendor is awaiting payment from the buyer for a large-dollar sale. The Administration Fee on this outstanding payment may be deferred to the next quarter when payment is received from the buyer. Note: Deferments approved by OSD are due the following reporting quarter.
Adjustment Example: A Prompt Pay Discount (PPD) reduces the buyer’s payment, thereby lowering total sales paid to the vendor. The vendor may request an adjustment for the PPD amount.
Note: If vendors require both a Deferral and an Adjustment within a reporting quarter, vendors should file a Deferral request first, then, once approved, vendors may request an Adjustment based on the new invoice created.
What is the Administration Fee process if I have no sales for a particular quarter?
If a Statewide Contract Vendor has no sales for a reporting quarter, they will submit a $0 Sales Report through the VRM portal. Once that report is accepted by OSD, the vendor has no additional quarterly reporting requirements unless they have outstanding reports or Administration Fees from a prior reporting quarter.
Are vendors still permitted to submit Administration Fee reports directly through the Secure Payment Center?
No, beginning in October 2022 with FY23 Q1 reporting, vendors must use the VRM portal to submit their Sales Reports and Administration Fee payments.
Exception: Vendors who owe Administration Fee payments for prior reporting quarters still will access the Secure Payment Center directly to submit those past due payments. Contact the OSD Admin Fee Administrator with questions.
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.
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.
Is the Sales Reporting process changing?
Although the process to submit Sales Reports has not changed, Sales Report due dates have changed. Reports are due 30 days after the conclusion of the reporting quarter:
| Reporting Period | Due Date |
|---|---|
| January 1 – March 31 | April 30 |
| April 1 - June 30 | July 30 |
| July 1 - September 30 | October 31 |
| October 1 - December 31 | January 31 |
Questions?
Direct questions about submitting Sales Reports/Administration Fee payments or adding Users to your VRM profile to the OSD Help Desk at 888-MA-State (627-8283).