Subcontracting, Ancillary, and Growth Development Commitments

Instructions for Submission

Bidders must submit one form for each M/WBE relationship in the SDP Plan submission. A narrative statement can be included to supplement the SDP Plan Form providing further details of the SDP commitments. The submission of this narrative statement does not replace the requirement of the SDP Plan Form.

Examples of SDP Commitments

Subcontracting:

If Bidder commits to Subcontracting in their SDP Plan, then they must commit to subcontract a specific dollar amount, or a minimum percentage of dollars earned through an awarded contract, with a SDO-certified company or a company that has applied for certification.Please note that all subcontracting partnerships require inclusion of that contract (MOU = Memo of Understanding) between the Bidder and the M/WBE subcontractor in the Bidder’s bid package.

Examples:

  • MDGW Office Supply Co., W/MBE Prime Vendor, on OFF53, commits to subcontract 4.5% of annual revenues with Joe’s Delivery Services (MBE) to ship packages to state agencies for every year of the contract.
  • Rivera’s Construction Co., non-certified prime vendor on FAC17, subcontracts $50,000.00 with Garcia’s HVAC, Inc. (M/WBE) to install the heating and air conditioning for the project.
  • Our Daily Bread Etc. Inc., a WBE certified prime vendor on a Department of Corrections multi department food contract, subcontracts with L.Wides Products (WBE) to supply all paper products ordered through the use of the contract for all departments.

Ancillary:

If a Bidder commits to Ancillary uses of certified M/WBE Firm(s), or companies that have applied for certification, in their SDP Plan, then they must include dollar or percentage expenditure commitments for use of these firm(s) with or without the use of written commitments between the Bidder and the M/WBE Firm(s). A description of the ancillary uses of certified M/WBEs, for each year of the contract, must be included on the SDP Plan Form.

Ancillary services are not directly related to the scope of the solicitation or the core services or commodities being delivered to the Commonwealth. Ancillary commitments are for use of the M/WBE in the operational needs of the prime contractor.

Examples:

  • Cranberry Inc., prime vendor commits to spending 10% of the potential fiscal year revenue from the contract with Gabrielle a certified MBE.
  • IQ Communications, prime vendor for multi-department contract for telecommunication services, commits to spend $5,000.00 with Castillo Office Supplies, MBE, every year of the contract to provide office equipment and supplies.
  • Angel’s Technology, out of state non-certified prime vendor, Madison Printing, Inc., out of state certified WBE, to print their annual catalogs.

Growth & Development:

If a Bidder commits to Growth and Development in their SDP plan, then they must submit a plan for education, training, mentoring, resource sharing, joint activities, and assistance that would increase industry capacity and the pool of qualified SDO certified companies.

Examples by Categories:

  • Sponsorship:

GRP Landscaping, Inc. sponsors the annual cost of a boothto a trade show for Metrowest Catering (WBE) for each contract year.

  • Training:

Best Computer Inc, prime vendor, offers technical training and support to Majestic Software Co. (M/WBE).

  • Resource Sharing:

MGDFGL Consulting, prime vendor, sponsors the C. Richard’s Photography, Inc., (M/WBE) to attend a Diversity Business conference or training in photo-technology.

  • Mentoring:

Boston Construction Inc., prime vendor, provides support and guidance to Diversity Alliance Inc., MBE, to assist in obtaining certification, license and/or bonding status.