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Committee holds procurement overhaul after debate over local business participation targets
Summary
CB 37-2025 proposes broad revisions to procurement code including reducing county-based small/minority business participation targets from 50% to 35%. The committee heard administration and procurement office rationale but several council members requested more work; the committee voted to hold the bill.
The Government Operations and Fiscal Policy Committee on May 12 reviewed CB 37-2025, a comprehensive set of amendments to Subtitle 10A (procurement) that would change administrative procedures, multiyear contract rules and county-based participation targets for certified county-based small businesses and minority business enterprises (MBEs).
Roger Benagis of the Office of Budget and Policy Analysis described the bill's substantive elements and its potential fiscal implications. Notable changes include requiring annual review of procurement regulations (rather than once every five years), new multiyear-contract requirements and a proposed reduction in county-based small business / MBE participation thresholds in certain contract negotiations from 50% to 35%.
The administration and procurement director said the change is intended to reduce waiver requests and to enable prime contractors to subcontract locally when a single county-based firm cannot meet all prime-contract requirements. Pamela Dickerson, director of the Office of Procurement, told the committee the office is actively engaging small businesses and ramping up outreach, events and technical assistance.
Some committee members and outside witnesses expressed concern that lowering the threshold would reduce opportunities for county-based MBEs and that the Office of Procurement must demonstrate more proactive outreach and pipeline development before the threshold is reduced. Council members asked for better evidence that county-based firms can meet specific NAICS-code requirements and requested more detail on vendor outreach and certification support.
After discussion, the committee voted to hold the bill so staff and the administration can provide additional information and address concerns about supporting county-based MBEs. The motion to hold was recorded and carried.
