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Supplier Diversity Office Comprehensive Annual Report Fiscal Year 2019

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Supplier Diversity Office Comprehensive Annual Report Fiscal Year 2019 SERVING PUBLIC BUYERS AND VENDORS OF THE COMMONWEALTH OF MASSACHUSETTS Supplier Diversity Office Comprehensive Annual Report Fiscal Year 2019 To: Governor Baker, Lieutenant Governor Polito, Members of the General Court, Cabinet Secretaries, Agency Heads, Secretariat and Agency Supplier Diversity Officers From: William M. McAvoy, Deputy Assistant Secretary for Supplier Diversity __________________________________________________________________________________________ I am pleased to present the Operational Services Division’s Supplier Diversity Office (SDO) Comprehensive Annual Report for Fiscal Year 2019 (FY2019), which also includes narrative descriptions of supplier diversity programs and/or results from 11 Commonwealth of Massachusetts quasi-public organizations. Consistent with the directives in Executive Order 565, the SDO provides certification, programs, training services, and access to business opportunities for Minority (MBE); Women (WBE); Veteran (VBE); Service-Disabled Veteran (SDVOBE); Disability (DOBE); and Lesbian, Gay, Bisexual, and Transgender (LGBTBE) owned businesses, as well as small businesses (SBPP) headquartered in Massachusetts. The accompanying report includes information about the Commonwealth’s diverse and small business programs, including the Certification, Supplier Diversity (SDP), Small Business Purchasing (SBPP), and Affirmative Marketing programs. Below are some highlights from the report: • The Commonwealth spent more than $2.07 billion with diverse and small businesses (a 1.44% increase over FY2018), which includes discretionary spending of $1.48 billion (a 1.5% increase over FY2018) and non- discretionary spending of $596 million (a 1.27% increase over FY2018). • For FY2019, the MBE and WBE benchmarks were increased by one percentage point, to 8% and 14%, respectively. • The spending for MBE, WBE, and SBPP exceeded benchmarks by approximately 7%, 33%, and 37%, respectively. • Work continued to improve spending against the veteran-owned business benchmark, continuing the upward trend in veteran spending and achieving 28% of the goal, which was up from 22% in FY2018. • DOBE and LGBTBE were added to the Supplier Diversity Program, as part of a long-term plan to build utilization leading to the establishment of future DOBE and LGBTBE benchmarks. • Total discretionary supplier diversity spending increased in all categories except MBE, which experienced a 4.5% decrease as a result of shifts in Commonwealth construction spending and the gradual completion of projects involving Portuguese Business Enterprises (PBEs). • The number of certified businesses was maintained or increased in all categories but SDVOBE, bringing the total number of diverse firms available to do business with the Commonwealth and its prime contractors to 3,544 (a 7% increase over FY2018). The SDOVBE category experienced a 3% reduction due to the migration to a new online processing system for third-party certifications. • The SDO signed a Memorandum of Understanding with the City of Boston (the City), thereby giving the City access to more than 3,000 SDO-certified MBE, WBE, and VBE and reducing business costs in accessing supplier diversity programs for both organizations. The Commonwealth, through the SDO, was recognized with the inaugural, national Supplier Diversity Partnership Award by Disability:IN for our work to expand opportunities for individuals with disabilities in state procurement. For additional information about the SDO’s programs, initiatives, and results, please read the SDO’s Comprehensive Annual Report for FY2019, which follows. 2 Table of Contents Table of Contents ..................................................................................................................................................... 3 Introduction .............................................................................................................................................................. 5 Executive Summary ................................................................................................................................................. 5 SDO Overview ......................................................................................................................................................... 6 State Certification Program ...................................................................................................................................... 6 State Certification ................................................................................................................................................. 7 Third-Party Certification Recognition ................................................................................................................. 7 Ongoing Certification Program Activities ........................................................................................................... 8 Overview of Diverse and Small Business Spending ................................................................................................ 9 Discretionary Spending with Diverse and Small Businesses ............................................................................... 9 Non-Discretionary Spending with Diverse and Small Businesses ..................................................................... 11 Total Spending with Diverse and Small Businesses .......................................................................................... 12 Supplier Diversity Program (SDP) ......................................................................................................................... 12 Minority-Owned Business Enterprise (MBE) Spending .................................................................................... 14 Women-Owned Business Enterprise (WBE) Spending ..................................................................................... 15 Combined Veteran-Owned Business Spending ................................................................................................. 16 Disability and LGBTBE Spending ..................................................................................................................... 17 Small Business Purchasing Program (SBPP) ......................................................................................................... 17 Small Business Registration ............................................................................................................................... 17 Small Business Purchasing Program (SBPP) Spending ..................................................................................... 18 Combined SDP and SBPP Results ......................................................................................................................... 19 Municipal Construction Affirmative Marketing Programs (MCAMP) .................................................................. 20 Massachusetts School Building Authority (MSBA) Spending .......................................................................... 21 Program Outreach, Collaboration and Innovation Results ..................................................................................... 22 Program Recruitment ......................................................................................................................................... 22 Program Engagement and Retention .................................................................................................................. 23 Program Spending .............................................................................................................................................. 24 Narrative Reports by Quasi-Public Organizations ................................................................................................. 26 Massachusetts Convention Center Authority (MCCA) ...................................................................................... 27 Massachusetts Development Finance Agency (MassDevelopment) .................................................................. 27 Massachusetts Gaming Commission (MGC) ..................................................................................................... 28 Massachusetts Growth Capital Corporation (MGCC) ....................................................................................... 28 Massachusetts Housing Finance Agency (MassHousing) .................................................................................. 28 Massachusetts Port Authority (Massport) .......................................................................................................... 29 Massachusetts School Building Authority (MSBA) .......................................................................................... 29 3 Massachusetts State College Building Authority (MSCBA) ............................................................................. 29 Massachusetts Water Resources Authority (MWRA) ........................................................................................ 30 University of Massachusetts (UMass) Organizations ........................................................................................ 30 Appendix A: Overall Supplier Diversity Program Spending (MBE, WBE, Veteran, Small Business) ................. 32 Appendix B: MBE Spending by Program Participant ............................................................................................ 33 Appendix C: WBE Spending by Program Participant ..........................................................................................
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