Maryland panelists back sweeping Procurement Reform Act that raises small‑contract threshold, adds diversity plans and faster payments

The Maryland Department of General Services and allied state officials urged the House Health and Government Operations Committee to give House Bill 500 — the Procurement Reform Act of 2025 — a favorable report, saying the package would streamline state contracting and expand opportunities for small, minority and veteran‑owned firms.

The bill would raise the state’s small business reserve threshold from $500,000 to $1 million and eliminate a previous $50,000 floor; require oral presentations in some high‑value procurements; allow procurement officers to approve certain contract modifications under the small procurement threshold; and authorize the chief procurement officer (CPO) to establish source‑selection methods and approve expedited procurements. It would also centralize several socio‑economic procurement programs under the governor’s Office of Small, Minority, and Women Business Affairs (GASPA), require workforce‑diversity plans for contracts over $500,000 and supplier‑diversity plans for contracts over $250,000, and create a veteran‑owned small business reserve program for specified agencies.

Atif Chaudhry, secretary of the Department of General Services, told the committee HB500 is “dense and very technical” but said the measure was the product of extensive stakeholder engagement…