Mass. bill would let state awarding authorities set MBE/WBE goals, allow limited subcontracting to meet them

Massachusetts Rep. Russell E. Holmes filed legislation Jan. 15 that would let awarding authorities set minority-owned business enterprise (MBE) and women-owned business enterprise (WBE) participation goals of up to 10% for certain filed sub-bids and trade contracts on state construction projects with an estimated cost of $5,000,000 or more. The bill also would allow covered bidders and trade contractors to subcontract portions of work they otherwise would be required to self-perform in order to meet those participation goals, within specified limits, and would require a commissioner to establish a waiver process.

The proposal matters because it would change how state agencies and state authorities structure subcontracting and self-performance rules on large public construction projects, potentially altering opportunities for MBE and WBE firms and the obligations of prime and trade contractors. The bill names several state entities whose projects would be covered, including the Division of Capital Asset Management and Maintenance (DCAMM), the Massachusetts State College Building Authority, the University of Massachusetts Building Authority and the Massachusetts Port Authority.

Representative Russell E. Holmes is listed as the bill sponsor. The draft adds a new subsection to Section 6 of Chapter 7C of the Massachusetts General Laws (labeled in the text as (h ½)). That subsection would apply to “filed sub-bids procured under section 44F of chapter 149 and trade contractor bids procured under section 8(a) of chapter 149A” and to projects procured under sections 44A–J of chapter 149 or sections 1–12 of chapter 149A, and to any “state assisted building project” having an overall estimated cost of $5,000,000 or more. On those “applicable projects,” the awarding authority could establish MBE and WBE participation goals for particular classes of filed sub-bids or trade contractor work, with the total participation goal for a given class of work capped at 10% of the value of the filed sub-bid or trade contractor work.

The bill further provides that, notwithstanding other law or contractual provisions, on applicable projects a filed sub-bidder or trade contractor may meet MBE/WBE participation goals by subcontracting out portions of trade work the contractor otherwise would be required by law to self-perform and portions of trade work customarily performed by sub-trade subcontractors. The measure sets an additional limit: the total value of self-performed trade work that a filed sub-bidder or trade contractor may subcontract out to meet the MBE/WBE goal may not exceed the stated goal by more than an additional 10% of the value of that bidder’s or trade contractor’s work.

The bill instructs “the commissioner” to establish a good-faith pre-bid and post-bid/pre-award waiver process for bidders and trade contractors requesting reduction or waiver of a participation goal; the draft text does not identify which commissioner is responsible. Separate, conforming sentences are inserted into Section 44F(1)(a) of Chapter 149 and Section 8(g)(6) of Chapter 149A to make clear that a sub-bidder or trade contractor may subcontract portions of its work in order to meet MBE/WBE goals on projects governed by the cited sections and by the new subsection in Chapter 7C.

The bill text refers repeatedly to MBE/WBE “goals” set by awarding authorities; it does not create a single statewide numeric requirement beyond the 10% cap on goals for any given class of work. The paperwork does not include estimated fiscal impacts, enforcement mechanisms beyond the waiver process, or implementation details such as documentation or verification requirements for counting subcontracted work toward goals.

House Bill No. 3347 was filed in the House and, in the filing language, referred to the committee on State Administration and Regulatory Oversight. The measure is a legislative proposal and was not presented as an adopted rule, regulation or final policy in the filing text.

Key details not specified in the filing include which named “commissioner” is responsible for the waiver process, administrative timelines for waivers, how awarding authorities must calculate or verify subcontracted work that counts toward MBE/WBE goals, and whether the bill would change existing reporting or compliance requirements for state contractors. Those items would need to be resolved in committee or in later amendments for operational clarity.