Governor Files Bill to promote greater participation of MBE, WBE businesses in public construction

Governor Baker Files Bill to promote greater participation of minority- and women-owned businesses in public construction, including small businesses. 

This bill, filed on February 27, 2020, is now H.4511 in the Joint Committee on State Administration and Regulatory Oversight, would:

• increase the thresholds governing when filed sub-bids would be required, only requiring them when the subcontracted work costs more than $50,000 and the overall project cost exceeds $1M, with a goal to increase opportunities for MBE and WBE contractors plus veteran-owned and other small and local businesses.
• expand opportunities for MBEs and WBEs on Division of Capital Asset Management and Maintenance (DCAMM) and other public projects  Currently, over 50% of public building work is subcontracted out by means of filed sub-bids, but these sub-bids are not currently subject to MBE and WBE participation goals.
• allows DCAMM to set MBE and WBE participation goals for this subcontracted work on projects over $5 million.
• Lastly, this bill will allow MBE and WBE participation goals to be set for work on projects controlled by state agencies other than DCAMM.

Separately, during the February 27, 2020 press conference (see press release) announcing this bill, the Governor also announced administrative changes involve DCAMM splitting the Affirmative Marketing Plan (AMP) goals for the percentage of spending distributed to MBEs and WBEs so that there are distinct participation requirements for both groups to improve participation by both MBE and WBE firms. The combined annual participation goals will be increased from 10.4% to 13% in the construction phase, and from 17.9% to 21.6% in the design phase. These changes will also allow for the establishment of project-specific AMP goals.

ACEC/MA welcomes comments on this bill from our members. Please contact Abbie Goodman