Division of Capital Asset Management
& Maintenance (DCAMM)
FY 2019 Annual Report
Supplier Diversity – Affirmative Marketing
Program for Design & Construction
March 16, 2020
CHARLES D. BAKER MICHAEL J. HEFFERNAN
SECRETARY
GOVERNOR ADMINISTRATION & FINANCE
KARYN E. POLITO CAROL W. GLADSTONE
LIEUTENANT GOVERNOR COMMISSIONER
The Commonwealth of Massachusetts
Executive Office for Administration and Finance
Division of Capital Asset Management and Maintenance
One Ashburton Place
Boston, Massachusetts 02108
Tel: (617) 727-4050
Fax: (617) 727-5363
CHARLES D. BAKER MICHAEL J. HEFFERNAN
GOVERNOR SECRETARY
ADMINISTRATION & FINANCE
KARYN E. POLITO CAROL W. GLADSTONE
LIEUTENANT GOVERNOR COMMISSIONER
March 16, 2020
Michael J. Heffernan, Secretary
Executive Office of Administration and Finance
State House, Room 373
Boston, MA 02133
RE: FY 2019 Annual Report Supplier Diversity – Affirmative Marketing Program for Design & Construction and
Workforce Reporting
Dear Secretary Heffernan:
Attached please find the FY 2019 report for the Division of Capital Asset Management and Maintenance’s
(DCAMM) construction and design MBE/WBE program and Workforce Reporting. To contextualize your review of
this report, overall construction spending in FY 2019 was down due to significant delays in the passage of the
2018 Capital Bond Bill, now Chapter 113 of the Acts of 2018.
The MBE/WBE program, also known as DCAMM’s Affirmative Marketing Program, is established under M.G.L.
Chapter 7C, §6, and various Executive Orders and Administrative Bulletins, including Executive Orders 559 and
565 signed by Governor Baker in 2015.
In addition to Chapter 7C, §6, A&F Administrative Bulletins 14 and 17A together set workforce participation
benchmarks on state and state-assisted construction contracts. They also specify construction and design data
collection and reporting guidelines. Additionally, Bulletin 17A added reporting of Service Disabled Veteran
Owned Business Enterprise (SDVOBE) contract expenditures and workforce reporting on each contract.
DCAMM establishes MBE/WBE participation goals on individual design and construction projects based on a
statewide disparity study, as well as project-specific considerations, including scope, size, and availability of
certain types of firms. The agency’s maximum combined MBE/WBE goals are currently 10.4% for construction
and 17.9% for design, however these goals may be appropriately adjusted downward based on project specific
circumstances. In December 2017, DCAMM completed its most recent Disparity Study. Enhancements to the
AMP based on this Disparity Study were announced by the Baker-Polito Administration at a public event held on
February 27, 2020. These enhancements were developed with substantial input from industry partners and
members of the Black and Latino Caucus.
In FY 2019, MBE and WBE firms received nearly $36.1 million for construction and design services from DCAMM,
resulting in the agency once again surpassing established MBE/WBE program goals for payments to design and
construction firms as well as for new contract awards for design and construction services. In FY 2019:
• Payments to MBE/WBE construction firms exceeded goals – achieving 11.6% against the goal of 10.4%
• Payments to MBE/WBE design firms exceeded goals – achieving 37.2% against a goal of 17.9%
• Construction awards to MBE/WBE firms fell short at 7.5% against the goal of 10.4%
The total DCAMM Construction awards for FY 2019 were $161M and represented a 46% increase over
the previous year. It is clear that DCAMM is making progress in getting past the residual effect of the
delayed bond bill
• Design Awards to MBE/WBE firms exceeded goals – achieving 34.0% against the goal of 17.9%
• Veteran-owned businesses received over $7 million in payments in FY 2019
The Commonwealth’s established goals for construction workforce participation are 15.3% for minorities and
6.9% for women. On DCAMM’s projects, contractor-reported construction worker hours totaled nearly 685,000
hours on active construction projects during FY 2019. Currently, there are no established benchmarks for
designer workforce participation on state projects, however professional women working in design comprised a
much larger part of the workforce than their female counterparts in the construction trades. The FY 2019
Workforce Report indicates:
• 3.1% of construction hours were worked by women against the goal of 6.9% (unchanged from last year)
• 15.8% of construction hours were worked by minorities (down from 20.1% from last year and exceeding
the goal of 15.3%)
• Over 32% of employees that worked on design service projects were women (up from 30% in FY 2018)
• Nearly 23% of employees that worked on design service projects were minorities (up from 19% in FY 2018)
DCAMM is fulfilling its commitment to help minorities and women realize successful careers in the construction
industry and has initiated several outreach programs to help create a pipeline of skilled workers to meet the
demand for a diverse workforce.
In keeping with Governor Baker’s vision of expanding opportunities for MBE/WBE and Veteran-owned firms
while simultaneously making Massachusetts more business friendly, DCAMM continues initiatives to expand
opportunities and make working with DCAMM easier. These initiatives include:
• Expanding implementation of online contractor certification system
• New web-based contractor and workforce reporting and data collection system for FY 2018/2019
• Ongoing outreach programs to encourage more MBE/WBE and Veteran-owned firms to do business
with DCAMM and to encourage minorities and women to enter into construction careers
The attached report provides additional information about these initiatives and DCAMM’s Affirmative Marketing
Program and workforce tracking results for FY 2019.
Sincerely,
Carol Gladstone
Commissioner
Distribution:
Mr. Tony Richards
Deputy Chief for Access and Opportunity, Governor’ Office Mr. Michael Hurley
Clerk of the Senate
The Honorable Michael J. Rodrigues, Chair
Senate Committee on Ways and Means Mr. Steven T. James
Clerk of the House
The Honorable Aaron Michlewitz, Chair
House Committee on Ways and Means Mr. William McAvoy
Chief Legal Counsel, Operational Services Division
The Honorable Marc. R. Pacheco, Chair
Joint Committee of State Administration Mr. Walter K. Brownell
Deputy Commissioner, Finance and Administration
The Honorable Danielle W. Gregoire, Chair Division of Capital Asset Management and Maintenance
Joint Committee of State Administration
INTRODUCTION AND OVERVIEW OF METHODOLOGY
This report summarizes performance against program goals under the Division of Capital Asset Management
and Maintenance (DCAMM) FY 2019 Supplier Diversity – Affirmative Marketing Program for Design and
Construction, as well as workforce utilization data compiled for FY 2019 from firms working on DCAMM
construction and design projects.
DCAMM has had a program to expand access and opportunity for Minority and Women-owned (MBE/WBE)
construction and design firms for several decades. Massachusetts General Law Chapter 7C, §6 and its
predecessor legislation originally established programs first for MBE firms, later adding WBE firms. The early
program also focused exclusively on construction projects, later expanding to design services and workforce
reporting.
In addition to Chapter 7C, §6, A&F Administrative Bulletins established minority and women workforce
participation benchmarks on state construction contracts along with construction and design data collection
and reporting guidelines for workforce participation. These bulletins also established separate benchmark
goals for veteran-owned firm participation in design and construction contracts.
METHODOLOGY: PERFORMANCE AGAINST DESIGN AND CONSTRUCTION MBE/WBE GOALS
DCAMM establishes both its overall annual goal and specific MBE/WBE participation goals for design and
construction projects based on a statewide disparity study. Among other things, the study determines the
availability of MBE/WBE firms and the extent to which our design and construction marketplace limits
participation for these firms. The following are the current goals for DCAMM projects:
Total Contractor Payments to MBE/WBEs 10.4% combined MBE/WBE Participation
Total Contractor Payments All Firms
Total Design Payments to MBE/WBEs 17.9% combined MBE/WBE Participation
Total Design Payments to All Firms
The goals set forth above may be reduced or waived by DCAMM prior to bidding based upon several factors
including project specifications, size, and scope of work, subcontracting opportunities, MBE/WBE availability,
and good faith efforts.
The performance data presented here is based on these calculated ratios across DCAMM’s project portfolio.
FY 2019 spending and awards data was drawn from a combination of MMARS (the state’s official accounting
system) and dedicated in-house data sources used to track compliance with the MBE/WBE goals and the
Veterans Benchmark (currently at 3%).
METHODOLOGY: BENCHMARKS FOR CONSTRUCTION WORKFORCE PARTICIPATION
A&F Administrative Bulletin 14 establishes the following workforce participation benchmarks on state
construction contracts:
Number of Hours Worked by Minority Employees 15.3%
Total Number of Hours Worked by All Employees
Number of Hours Worked by Female Employees 6.9%
Total Number of Hours Worked by All Employees
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TRACKING DESIGNER WORKFORCE
It is important to note that there are no established benchmarks for designer workforce participation on
DCAMM projects; however, the participation of minorities and women as a portion of the total workforce
providing services on agency projects are tracked. Reporting requirements on design contracts extend only to
the prime firm providing services on the project. Construction workforce reporting extends from general
contractor/prime through the lowest tiered subcontractor with labor onsite.
STRENGTHENING MASSACHUSETTS’ COMMITMENT TO VETERANS
In 2015, Governor Baker signed Executive Orders (EO) 559 and 565 aimed at reaffirming and strengthening the
Commonwealth’s commitment to an inclusive marketplace. EO 565 directed the expansion of the statewide
Supplier Diversity Program (SDP) to include a new certification category for Veteran-owned Businesses. The
combined Veteran-owned and Service-Disabled Veteran-owned benchmark is 3%. DCAMM contracts contain
this benchmark, strongly encouraging participation by Veteran-owned businesses. The agency continues to
track and report on participation.
IMPLEMENTATION OF DCAMM’S FY 2018 - FY 2019 STRATEGIC PLAN FOR EXPANDING
ACCESS AND OPPORTUNITY
Working through Governor Baker’s Office of Access and Opportunity, in partnership with the Massachusetts
Supplier Diversity Office (SDO) and other state agencies, industry groups, and other stakeholders, DCAMM
continues its commitment to improving access and opportunities through a number of ongoing initiatives.
2017 DISPARITY STUDY
DCAMM completed its most recent Disparity Study in December 2017. Significant updates to the AMP program
based on the study were announced by the Baker-Polito administration at a public event held on February 27,
2020.
OUTREACH TO CONSTRUCTION AND DESIGN BUSINESSES
DCAMM continues to work across agencies and industry partners to increase engagement and participation of
MBE/WBE and Veteran owned firms. In the past year, DCAMM participated in numerous events to increase
the awareness of the many opportunities available to work with the agency.
DESIGNER PARTNERSHIP SESSION
In 2019, DCAMM, in conjunction with the Designer Selection Board and the SDO, hosted its first Designer
Outreach Partnership Session with outstanding success. DCAMM convened over 150 participants to explore
future MBE/WBE partnerships through professional ‘speed dating’. DCAMM provided an overview of the
current Affirmative Marketing Program and shared important data from the 2017 Disparity Study. Participants
expressed overwhelmingly positive feedback, and many made beneficial connections with new partners in the
industry.
REALIZE BOSTON
Realize Boston is a collaborative partnership of local and national private and public agencies to support
minority and women contractors. The organization prepares them to successfully bid on energy efficiency and
energy retrofit projects. This dovetails with the Commonwealth’s effort to reduce energy usage and achieve
net-zero carbon emissions. Working with Realize Boston, DCAMM’s Access & Opportunity team conducted a
training sessions week for contractors to increase understanding of the DCAMM certification process.
DCAMM’s Energy team provided detailed insight on accessing energy projects, as well as an overview of
Chapter 25 laws.
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DCAMM ONE-ON-ONES
DCAMM provides training on design and construction procurement to MBE/WBE and Veteran contractors,
small businesses, and other industry participants interested in becoming DCAMM certified. A keystone of this
outreach and training effort are the ongoing DCAMM One-on-Ones. Throughout the Commonwealth, firms
meet individually with DCAMM staff to:
• Increase the pool of DCAMM certified contractors
• Educate prospective and existing contractors and vendors on DCAMM’s various functions and
upcoming opportunities
TARGETED MBE/WBE RECRUITING
DCAMM has targeted a list of 177 MBE/WBE SDO certified contractors that perform work in one or more of
the construction categories for which DCAMM certification is available. The list of contractors intentionally
includes firms that are not currently DCAMM certified to bid on public projects. The outreach to these firms
has included a formal letter, follow up emails, phone calls and meetings focused on educating the contractor
on the benefits of a DCAMM Certification and the opportunities to work with the Commonwealth.
OTHER NETWORKING EVENTS
• Mass Gaming Commission - Summit on Diversity
• Massport Means Business Diversity Summit
• Meetings of the Massachusetts Minority Contractor Association
• The Greater New England Minority Development Council Summit 2019
• General Contractor’s MBE/WBE Training Classes - Trade Partnership Series
• Northeastern University – Supplier Diversity events
• MBE Mass Black Expo/Boston Convention Center
• ABX Conference/Boston Convention Center
• OSD Supplier Diversity Event/DCU Center
MINORITY AND WOMEN BUSINESS WORKFORCE PROGRAM
DCAMM is committed to finding and creating opportunities to help minorities and women navigate careers in
the construction industry. This is a clear “win-win” for workers, industry, and governmental entities. To that
end, DCAMM:
• Shares ideas and best practices with public and private entities to build and maintain a diverse
workforce on publicly funded projects
• Supports paid internship opportunities that include mentoring and professional development to
encourage inner city youth, especially young women of color to explore and pursue careers in
construction
• Participates in advisory boards and outreach events designed to recruit and attract high school
students, especially girls, to the construction pipeline such as:
o Massachusetts Apprenticeships
o Massachusetts Girls in the Trades
o Building Pathways
o Youth Build Boston
• Educates prime contractors and designers on their obligations and DCAMM’s compliance process,
including its electronic MBE/WBE payments, certified payroll and workforce reporting
• Leverages technology to facilitate communication and reporting and improve the quality and quantity
of compliance-related data collected
• Sends target mailings to MBE/WBE subcontractors to create access and opportunities on future
DCAMM construction and design projects
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• Attends agency pre-bid meetings on an ongoing basis to inform Prime contractors of their obligations
and commitment to meet MBE and WBE participation goals and Veteran and workforce benchmarks
NEW PERIODIC INFORMATIVE PUBLICATIONS TO SUPPORT CONTRACTORS AND DESIGNERS TO
ENHANCE ACCESS AND OPPORTUNITY
COMPLIANCE CORNER
The Compliance Corner are periodical emails sent to inform and update contractors on compliance reporting
and changes within the Affirmative Marketing Program. Aver a dozen Compliance Corner Publications were
sent out in 2019.
TIP SHEET
Tip Sheets are periodical emails sent out to increase contractor awareness of the DCAMM Contractor
Management Systems (DCMS) process for contractor certification. There were over a dozen Tip Sheet
Publications sent out in 2019.
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DCAMM CONSTRUCTION PAYMENTS DATA
FY2019