The Government Operations and Fiscal Policy Committee voted 5-0 to move CB 70-2025 forward with amendments that establish a 15% subcontracting floor for businesses that do not qualify as county-based small businesses or county-based minority business enterprises (MBEs).

Committee staff described the bill as requiring that a non-qualifying prime contractor include a subcontract with a county-based small business for at least 15% of the total contract value. The fiscal analyst told the committee that the county does not expect a direct fiscal impact but cautioned that contractors may struggle to identify qualified county-based MBEs for subcontracting, which could have indirect effects on procurement competition.

Staff from the Office of Procurement said the county code already includes set-aside and participation requirements, citing existing provisions that, for example, reserve contracts under $100,000 for county-based small businesses and require participation targets for larger contracts. Procurement staff raised concerns that the bill, as drafted, lacked a dollar threshold and could unintentionally apply to very small purchases. They also warned that references to race or preferential floors could raise equal protection concerns under the Constitution.

Vice Chair Oriada, the sponsor of the amendment language, said the change aims to create a floor of 15% utilization for county-based MBEs within the existing 50% participation framework set out in the code. The committee adopted the amendment and voted 5-0 to move the bill forward with the agreed language.

Procurement staff asked to work with the sponsor on clarifying dollar thresholds and measurement and to align any new requirement with ongoing procurement reforms to streamline certification and increase local participation. The committee approved the amendment to add a 15% floor and advanced the bill to the full council for further consideration.