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Massachusetts issues supplier diversity executive order and releases annual report
Published on 06/28/2022

The Governor's Office of Massachusetts has issued an executive order consolidating oversight of various contracting programs under the newly-established Supplier Diversity Office (SDO). The executive order also issues several directives with the goal of supporting business diversity and inclusion in state contracting.

The order, Executive Order 599, consolidates oversight of the supplier diversity program, the small business purchasing program, and other initiatives under the SDO. The order also creates an advisory board for the SDO, calls for supplier diversity officers with oversight over reaching spending targets in all state departments, and creates a new internal compliance unit within the SDO that will ensure certification procedures and other compliance procedures are followed properly.

The SDO's Fiscal Year 2021 Annual Report made findings of successful utilization of minority-owned business enterprises (MBEs), woman-owned business enterprises (WBEs). The goal for MBEs was 8 percent, and 8.79 percent utilization was achieved during fiscal year 2021; for WBEs, a goal of 14 percent was set and 19.37 percent was achieved. Spending with small and diverse businesses in total for the fiscal year was $2.85 billion, which represents a 26.7 percent increase over spending with such businesses in the prior fiscal year. The report additionally found that number of certified businesses in the state increased in all categories, and the number of individual small and diverse businesses the state contracted with grew by 8.9 percent for direct spend and 3.5 percent for indirect spend over the prior fiscal year.

"Small and diverse businesses are critical components of the Massachusetts economy, and our Administration has been focused on expanding opportunities for these companies in the public marketplace," said Governor Charlie Baker in a statement.

Read the press release from the state at https://www.mass.gov/news/baker-polito-administration-announces-further-improvements-to-supplier-diversity-efforts-and-highlights-strides-in-fiscal-year-2021.

Read the executive order at https://www.mass.gov/executive-orders/no-599-reaffirming-programs-to-ensure-diversity-equity-and-inclusion-for-diverse-and-small-massachusetts-businesses-in-state-procurement-and-contracting.

Read the SDO annual report at https://www.mass.gov/doc/sdo-fy21-annual-report/download.

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