Committee hears lengthy testimony on Procurement Reform Act (SB 426) with focus on small-business access, prompt payments and diversity goals

The Senate Procurement Subcommittee heard multi-hour testimony on Senate Bill 426, the Procurement Reform Act of 2025, a broad rewrite of Maryland procurement rules that backers say will expand opportunities for small, minority and veteran-owned firms while speeding payments and modernizing source-selection and contract modification processes.

Supporters described the bill as a wide-ranging effort to make state contracting more transparent and accessible. "This legislation reflects the diverse needs and collective vision of our entire state," said Wallace Sermons II, chief procurement officer for the State of Maryland. He told the committee the bill would expand the small-business reserve threshold, centralize socioeconomic programs in the Governor's Office of Small, Minority and Women Business Affairs (GOSBA), and give the chief procurement officer new authorities to streamline procurements.

Backers said those changes matter because current thresholds and paperwork exclude smaller firms. The bill would raise the small-business-reserve (SBR) threshold to $1,000,000 (up from $500,000), remove the prior $50,000 floor, and permit procurement officers to allow amendments to prime contractors' minority- and veteran-business participation schedules after bid submission. The…