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 Building Blocks that spell out New Rules

On June 28, the Operational Services Division (OSD) and the Supplier Diversity Office (SDO) issued a joint policy memorandum that introduced new policies for the Supplier Diversity Program (SDP) and Small Business Purchasing Program (SBPP) and Guidance for Evaluating Large and Small Procurements, which took effect on
July 1, 2021.


SDO Policies

OSD Guidance

The policy changes to the SDP and SBPP were announced by Gary Lambert, Assistant Secretary for Operational Services, in November 2020 and they are aimed at expanding business opportunities for diverse and small businesses and supporting the economic recovery of the Commonwealth for goods, services, and purchase of service contracting. The policy changes were implemented in two stages:

Effective January 1, 2021

  • Partner Growth and Development partnerships no longer qualify as a form of indirect spending for SDP spending goals.

Effective July 1, 2021

  • The SDP applies to Large Procurements, defined as those with annual values exceeding $250,000.
  • Under the SDP, contract evaluation criteria will allocate at least 25% of the total evaluation points to the evaluation of the SDP Plan.
  • Under the SBPP, the small business preference applies to Small Procurements, defined as those with annual values equal to or less than $250,000, and RFQs with annual values equal to or less than $250,000.

To assist buyers and vendors in navigating the policy changes and reporting requirements, the SDO is hosting virtual office hours which may be booked as 15-, 30-, or 60-minute sessions. Additionally, the SDO and OSD are updating related policies, procedures, training sessions, and other resources to ensure compliance with the SDP and SBPP policy changes.

Please email questions about the SDO policies to Questions about the OSD guidance should be emailed to

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