SDO Presentation - SDP Slides for Prebid Conferences - August 2021 - Departmental.pptx

Dmitriy Nikolayev Director of Programs, Policy, and Reporting

© 2021 SUPPLIER DIVERSITY OFFICE. All Rights Reserved.

Commonwealth of Massachusetts Supplier Diversity Office (SDO)

What is Supplier Diversity?

Supplier diversity is… the business practice of consistently including diverse businesses in an organization’s procurement activities.

an important part of the Commonwealth’s definition of “best value” in procurement.

distinct from workforce diversity.

What is the Supplier Diversity Program (SDP)?

To facilitate indirect spending, SDP Partnerships are required for all non-construction Executive Agency procurements expected to result in spending more than $250,000 per year.

State Agency Mission To promote equality and diversity in state contracting.

How it works Executive state agencies must meet annual goals for spending with certified diverse businesses.

These goals may be met through:

Direct Spending Indirect Spending Prime Contractor Certified State Agency Prime Contractor

SDP

Partner Certified

Key Contract Requirements All Bidders must propose a % of their contract sales to be spent with certified diverse companies (SDP Partners).

Contractors must report spending with SDP Partner(s) for the duration of the contract.

SDP Partners utilized by Contractors must be listed in one of the two directories identified in this presentation.

The SDP requirements apply even if your company:

Expects to do less than $250,000 per year in business.

Does not have SDP Partners at the moment.

Is a certified diverse business.

Supplier Diversity Program Plan Forms When Bidding When Reporting

Bidders pledge a % of sales to be spent with SDP Partners and describe current supplier diversity efforts.

On a quarterly basis, contractors report amounts spent with SDP Partners.

The SDP Plan Form

Part I: Bidder and Contact Information (Required)

Part II: SDP Focus Statement (Optional)

Part III: SDP Spending Commitment (Required)

Part IV: Proposed SDP Partners (Required)

Part V: Additional Creative Supplier Diversity Initiatives (if any) (Optional)

Part VI: Certification (Required)

SDP Plan: Section by Section

Bidders may receive additional points for completing items marked as optional.

Your description may include:

A clearly stated purpose or goal.

Specific types of diverse and small businesses targeted.

Which departments/units within the business are responsible for implementing supplier diversity.

Types of opportunities for which diverse and small businesses are considered.

Specific measures/methods of engagement of diverse and small businesses.

What percentage of your company’s contract sales do you propose to spend with certified diverse businesses (SDP Partners)? After contract award (if any), the Total SDP Commitment will become a contract requirement to be met annually on a Massachusetts fiscal year basis (July 1 – June 30) for the duration of the contract. See the RFR for any additional commitment specifications.

This will become a contract requirement

Eligible Partner Certifications

Minority Non-Profit Organization

Women Non-Profit Organization

Service-Disabled Veteran-Owned Business Enterprise

Not Eligible for SDP

Eligible for SDP

Program Flexibility Your SDP Partner… Does not have to be a subcontractor May be located outside of Massachusetts May be changed at any time One-time and occasional purchases also qualify (e.g. business cards, office equipment, fire extinguisher testing, etc.)

Partnership Options SDP Partners may assist the contractor in providing goods and services offered on contract.

Manufacturing/supplying a product for resale e.g., printing calendars for sale as office supplies, food products for sale by a grocery vendor Supplying a process/component for the prime contractor’s product/service e.g., outsourced logistics services, die cutting or binding services outsourced by a printing company, supplying electronic components for a product manufacturer Providing a portion of a scope of service e.g., providing a portion of state-funded consulting, engineering or IT project

Subcontracting

Partnership Options

SDP Partners may supply products or services needed for the contractor’s general business operations.

Ancillary Products or Services/General Business Needs

Separate and distinct from subcontracting and ancillary relationships included in the SDP financial commitment.

May include but not be limited to:

Serving as a mentor in a mentor-protégé relationship.

Technical and financial assistance provided to diverse businesses.

Participation in joint ventures between nondiverse and diverse businesses.

Voluntary assistance programs by which nondiverse business employees are loaned to diverse businesses or by which diverse business employees are taken into viable business ventures to acquire training and experience in managing business affairs.

Finding Partners

The SDO Directory of Certified Businesses More than 3,700 certified businesses

MBE, WBE, VBE, SDVOBE, DOBE, LGBTBE

www.mass.gov/sdp The U.S. Veterans Administration Vendor Information Pages (VIP) More than 14,000 certified businesses

VOSB, SDVOSB

https://vetbiz.va.gov/basic-search/

Online Directories of Certified Businesses

Finding Eligible Certified Partners Download the lists of eligible SDP partners from the SDO and VetBiz directories and compare your current suppliers to those lists.

Find current suppliers that are certified On an ongoing basis, closely monitor incoming state orders and projects for the potential to hire diverse businesses as subcontractors.

Identify subcontracting needs that may be met by a new diverse business partner Survey your suppliers to find diverse companies that are not certified or are certified by an organization other than the Massachusetts SDO. Connect them with the SDO (sdp@mass.gov) and encourage them to get certified.

Find current suppliers that may be certified On an ongoing basis, review your company’s business needs, including one-time purchases, to find areas where you may include new diverse suppliers.

Identify general business needs that may be met by a new diverse business partner

Online Certification Self-Assessment Tool:

https://www.mass.gov/forms/take-the-certification-self-assessment

After Bid Submission Each bidder’s response is assigned an evaluation score based on a set of evaluation criteria.

25% of the total evaluation score is allocated to the review of the SDP Plan Form.

Bid Evaluation No contract award will be made to a vendor without an acceptable SDP Plan.

Contract Award Quarterly SDP reporting will be required.

Only spending with SDO-certified or recognized businesses will be considered valid for reporting purposes.

Compliance will be measured on a fiscal year (July-June) basis.

Contract Compliance

Important Points SDP Plans are required.

Focus: business-to-business relationships with diverse companies.

SDP commitment: % of contract sales to be spent with certified diverse businesses.

SDP partners: Subcontracting is not required.

Ancillary products/services is also an option.

Out-of-state partners are allowed.

You can add/remove SDP partners during the life of the contract.

Evaluation: 25% of your total evaluation score from SDP Plan; additional points may be awarded for completing “optional” items.

After award: Regular SDP spending reports are required.

Only spending with SDO-certified and recognized businesses counts.

SDP commitment to be met annually on a fiscal year basis.

Your company is required to complete and submit an SDP Plan Form.

The SDP Plan details your company’s efforts to partner with businesses that are certified as minority-, women-, veteran-, service-disabled veteran-, disability- and LGBT-owned.

Your SDP commitment is the % of sales your company will spend with certified diverse businesses during the contract term.

Subcontracting is not required. Your SDP Partners may also provide ancillary products and services.

Your partners are not required to be Massachusetts-based. You can also add or remove SDP partners during the life of the contract.

Your SDP Plan Form will be evaluated, and at least a quarter of all evaluation points will be allocated to the review of this form. You may earn additional points for completing items that are marked as “optional” on the form.

After award (if any), your company will be required to report SDP spending and meet its SDP commitment annually on a fiscal year basis.

Resources and Contact Information

Website: www.mass.gov/sdp SDP Help Desk: sdp@mass.gov Supplier Diversity Program Phone: 617-502-8831 Email: Webmaster.SDO@mass.gov SDO Certification Help Desk www.mass.gov/sdo Our Website image5.jpeg image6.png image7.jpeg image8.jpg image9.jpg image10.emf image11.emf image12.emf image13.emf image14.emf image15.jpeg image16.jpeg image17.jpeg image18.jpeg image19.jpeg image20.jpeg image29.jpeg image21.jpeg image22.jpeg image23.jpeg image24.jpeg image25.jpeg image26.jpeg image27.jpeg image28.jpeg image30.emf image31.emf image32.emf image33.png image34.png image35.png image36.svg image37.png image38.svg image39.jpeg image40.jpeg image41.png