Unless the context indicates otherwise, the following terms have the following meanings: Bidder's list means the list of sources of supply for each category of goods, services, or construction purchased by the County. Change order means an order authorized by the County, directing the contractor to make changes which the contract authorizes the County to order without the consent of the contractor. Construction means the process of building, altering, repairing, improving, rehabbing, resurfacing, pavement milling or demolishing any structure or building, or other improvements of any kind to any real property, including routine operation, repair, and mechanical systems service contract for maintenance of existing structures, buildings, or real property. Contract means any agreement to which the County is a party for the procurement or disposal of goods, services, or construction, including any contract modification. Contract modification means any authorized alteration in specifications, delivery point, rate of delivery, period of performance, price, quantity, or other provisions of any contract accomplished by mutual agreement of the parties to the contract or by change order. Contractor means any person that is a party to a contract with the County. Cost-reimbursement contract means a contract under which a contractor is reimbursed for costs which are allowable under the provisions of the contract, this Chapter, and a fee, if any. County-based bidder or offeror means a person that has its principal place of business in Montgomery County, as further defined by Executive regulation adopted under Section 11B-8. Data means recorded information, regardless of form or characteristic. Director means the Director of the Office of Procurement or the Director’s designee. Goods means all supplies, equipment, materials, and all tangible personal property, excluding real property. Invitation for bids means all documents, whether attached or incorporated by reference, used for soliciting a competitive sealed bid. Mechanical Systems Service Contract means a contract for service of the following systems: (a) HVAC systems, including heating, ventilation, and cooling/air conditioning equipment; (b) refrigeration systems; (c) plumbing systems, including pipes, tanks, fittings, and other elements that control the water and gas supply, heating, and sanitation of a building; (d) electrical systems, including any electrical power and overhead and underground lines, poles, transformers, and other related equipment; or (e) elevator systems, including escalators, moving walkways, and other related conveyances. Person means any business, individual, union, committee, club, organization, group of individuals, firm, association, corporation, partnership, sole proprietorship, or other entity. Preference means a policy that favors one bidder over another and includes: (1) a percentage preference; (2) an employee residency requirement; or (3) any other law, policy, or practice that favors a resident over a nonresident. Procurement means buying, purchasing, leasing or otherwise acquiring any goods, services, or construction. It also includes all functions that pertain to the obtaining of any goods, service, or construction, including description of requirements, selection and solicitation of sources, evaluation of offers, preparation and award of contract, dispute and claim resolution, and all phases of contract administration. Public entity means: (1) the federal government; (2) a state government and any of its agencies; (3) any political subdivision of a state government and any of its agencies; (4) any board, commission, or committee established by federal, state, or local law; (5) any organization or association of the federal government, state governments, or political subdivisions of state governments; and (6) any other entity that is: (A) qualified as a non-taxable corporation under the United States Internal Revenue Code, as amended; and (B) incorporated by an entity under paragraphs (1) through (5) for the exclusive purpose of supporting or benefiting an entity under paragraphs (1) through (5). Regulation means a regulation adopted by the Executive under method (1). Request for proposals means all documents, whether attached or incorporated by reference, used for soliciting a competitive sealed proposal. Responsible bidder or offeror means a person who has the capability in all respects to perform fully the contract requirements, and the integrity and reliability which will help assure good faith performance. Responsive bidder means a person who has submitted a bid which conforms in all material respects to the invitation for bids. Services means the furnishing of labor, time, or effort by a contractor, not involving the delivery of a specific end product other than reports which are merely incidental to the required performance. This term does not include employment agreements or collective bargaining agreements. Specification means the words used to describe the goods, services, or construction to be purchased. Tie bid means a low bid submitted by a responsible and responsive bidder that is identical in price to a bid from another responsible and responsive bidder under a formal solicitation. Using department means any department, office, or agency which utilizes any goods, services, or construction procured under this Chapter. Transition. Any regulation in effect when this Act takes effect that implements a function transferred to the Office of Procurement by this Act continues in effect, but any reference in any regulation to the Department of General Services, from which the function was transferred, must be treated as referring to the Office of Procurement, to which the function is transferred. The transfer of a function under this Act does not affect any right of a party to any legal proceeding begun before this Act took effect. Any responsibility or right granted by law, ordinance, regulation, delegation of authority, contract, or other document to the Department General Services in connection with this Procurement Law and Regulations is transferred to the Office of Procurement.

The purpose of this Chapter is, in part, to implement Sections 313 and 314 of the Charter, which provide for a centralized system of procurement of goods, services and construction under the professional supervision of the Chief Administrative Officer subject to the direction of the County Executive.

This Chapter must apply to every expenditure of public funds, irrespective of their source, by the County and other entities subject to this Chapter under State law to acquire goods, services, or construction except as otherwise provided by County, State or federal law.

(a) This Chapter, other than Article XII, does not apply to: (1) a procurement made for the employees' retirement system under procedures approved by the Chief Administrative Officer; (2) obtaining the services of special legal counsel under Sections 213, 108, or 410 of the Charter; (3) the procurement of an independent auditor by the County Council under Section 315 of the Charter; (4) obtaining the services of an impasse neutral, mediator, or fact finder under a County collective bargaining law under procedures approved by the Chief Administrative Officer; (5) obtaining copyrighted material and information which is intended for use by the public in or through a public library under procedures approved by the Chief Administrative Officer; (6) obtaining electricity, natural gas, and compressed natural gas, under executive regulations; (7) purchasing goods or services for a County-sponsored recreational activity if the purchase is made on behalf of an identifiable group of persons who contribute funds to participate in the activity; (8) obtaining entertainment services, including but not limited to contracts for musical performers; and (9) obtaining the services of experts, consultants, and investigators by the County Attorney, whether in anticipation of litigation or in preparation for trial; (10) obtaining advertising services from media sources; (11) obtaining internet access service by administrative procedure under Section 2A-16; and (12) any other procurement exempted from this Chapter by another law.

(a) The Chief Administrative Officer has the authority and responsibility for: (1) the procurement of goods, services, and construction, and the management, control, warehousing, sale, and disposal of goods; (2) deciding matters of procurement policy; and (3) auditing and monitoring the implementation of regulations and the requirements of this Chapter. (b) All rights, powers, duties, and authority to administer the procurement system are vested in the Chief Administrative Officer.

(a) The Director, under the supervision of the Chief Administrative Officer, is the central procurement officer of the County. (b) Duties. Except as otherwise specifically provided in this Chapter, the Director must, under regulations: (1) procure or supervise the procurement of all goods, services, and construction; and (2) sell, trade, or otherwise dispose of surplus goods.

A Contract Review Committee may be established.

Regulations may be adopted by the County Executive to: (a) implement this Chapter; (b) promote the efficient and orderly operation of the procurement system; and (c) impose fees for services or products related to procurement.

(a) Conditions for use. Contracts must be awarded by competitive sealed bidding except as otherwise authorized in this Chapter or regulations. Competitive sealed bidding is initiated by issuing an invitation for bids. (b) Invitation for bids. An invitation for bids must include specifications, evaluation criteria including the procedure for resolving tie bids, and all contractual provisions applicable to the procurement. (c) Public notice. The Director must give public notice of an invitation for bids a reasonable time before the date set for the opening of bids. (d) Bid opening. Bids must be opened publicly in the presence of one or more witnesses at the time and place designated in the invitation for bids. The amount of each bid, and other relevant information as may be specified by regulation, together with the name of each bidder, must be recorded. The record and each bid is open to public inspection. (e) Bid acceptance and bid evaluation. (1) Bids must be unconditionally accepted without alteration or correction, except as authorized by regulation. (2) Bids must be evaluated based on the requirements set forth in the invitation for bids. (A) An invitation for bids may include criteria to determine the acceptability of a bid such as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose. A bid that is not acceptable must not be considered for contract award. (B) All criteria in the invitation for bids that affect the evaluation of the bid price must be objectively measurable, such as discounts, transportation costs, and total or life cycle costs. (f) Correction or withdrawal of bids; cancellation of awards. (1) Correction or withdrawal of inadvertently erroneous bids before or after award, or cancellation of awards or contracts based on bid mistakes, may be permitted under regulations. A decision to permit the correction or withdrawal of a bid, or to cancel a contract award based on a bid mistake, must be supported by a written determination made under regulations. (2) After bid opening changes in bid prices or other provisions of bids prejudicial to the interest of the County or fair competition must not be permitted. (g) Award. The contract may be awarded to the responsible and responsive bidder who submits the lowest bid which meets the requirements and criteria set forth in the invitation for bids. In determining whether a bid is responsive, the Director may waive a minor informality if the Director determines that a waiver is in the best interests of the County. A minor informality means a requirement in a bid which is merely a matter of form or is an immaterial provision in the solicitation. The Director may determine the defect in the bid to be immaterial when the significance of the defect as to price, quantity, quality, or delivery is trivial or negligible when contrasted with the total cost or scope of the procurement. The decision of the Director with respect to whether a requirement is a minor informality is final and may not be challenged by a bidder. (h) Multiple awards. Multiple awards may be made under a single invitation for bids if the invitation for bids provides for multiple awards. (i) Tie Bids. If the Director makes an award, the Director must award a contract to the County-based bidder when there is a tie bid between a County-based bidder and a non County-based bidder. (j) Reciprocal preference for County-based bidder. (1) In making an award under this Section, the Director must give a preference to a responsible and responsive County-based bidder if: (A) a non County-based bidder is the lowest responsible and responsive bidder; (B) the non County-based bidder has its principal place of business in a state or political subdivision that gives a preference to its residents; and (C) a preference does not conflict with a federal law or a grant affecting the purchase or contract. (2) A preference given under this subsection must be identical to the preference that the other state or political subdivision gives to its residents. (3) A preference must not be given under this subsection if it would result in an award to a County-based bidder when: (A) a non County-based bidder has submitted a lower responsible and responsive bid than any County-based bidder before the application of any reciprocal preference; and (B) the non-County-based bidder has its principal place of business in a state or political subdivision that does not give a preference to its resident.

(a) Conditions for use. Generally a contract for professional services should be awarded by competitive sealed proposals. Professional services include services of attorneys, physicians, architects, and engineers. If the Director determines that the use of competitive sealed bidding is not practical or advantageous to the County, a contract may be awarded by competitive sealed proposals. (b) Request for proposals. Competitive sealed proposals must be initiated through a request for proposals. (c) Public notice. The Director must give public notice of a request for proposals a reasonable time before the date set for submission of proposals. (d) Evaluation and method of award. (1) A request for proposals must contain evaluation factors and an explanation of how the rank of an offeror will be determined, including the procedure for resolving ties in ranking. Evaluation factors must include factors related to the technical quality of the proposal or the ability of the offeror, or both. Evaluation factors may include price. The evaluation process may involve one or more steps. (2) If the Director determines that a sufficiently detailed scope of services has been developed to allow for selection of a contractor on the basis of price, the evaluation process may provide for the selection of a proposed contractor by requiring all offerors who meet pre-established levels of competency as reflected in scores awarded by the qualification and selection committee to compete for the contract award on the basis of price alone. Price submissions must be submitted in a sealed offer. If required in the Request for Proposal, the price proposal must be binding on the offeror. The price proposal may be submitted at any point during the evaluation process as stated in the Request for Proposals. If the Director decides to award a contract on price alone, the Director must award a contract to the County-based offeror when a qualified County-based offeror and a qualified non County-based offeror have submitted equally ranked price proposals. (e) Qualification and selection committee. A qualification and selection committee must review and evaluate the proposals and recommend in order of preference the most qualified offerors. (f) Approval of contract awards. The Director must approve the proposed ranking of offerors. If a County-based offeror and a non County-based offeror each receive an identical ranking score, the Director must consider the County-based offeror to be the higher ranked offeror. (g) Negotiation with responsible offerors. Unless a binding offer has been required under the request for proposal, the Director may negotiate a contract with the approved top-ranked offeror. If a contract cannot be successfully negotiated with the top-ranked offeror, the Director may authorize that negotiations be undertaken with the next highest ranked offeror. If the Director approves, negotiations may be undertaken simultaneously with two or more of the top ranked offerors. If a binding offer has been required under the Request for Proposals, the Director may enter into a contract with the top-ranked offeror without negotiation. (h) Multiple awards. Multiple awards may be made under a single request for proposals if the request for proposals provides for multiple awards.

(a) Conditions of use. A request for expressions of interest may be used to: (1) obtain essential procurement information needed to prepare a subsequent solicitation; (2) develop a ready source of potential bidders or offerors who can respond within a short time frame to a subsequent solicitation; or (3) resolve technological or programmatic questions relative to how government requirements can best be supplied. (b) Evaluation. A request for expressions of interest must contain evaluation factors and an explanation of how the list of bidders or offerors who will be eligible to receive a subsequent solicitation will be determined. (c) Public notice. As determined by the Director, public notice of the request for expressions of interest must be given a reasonable time prior to the date set for submission of proposals in accordance with regulations. (d) Qualification and selection committee. A qualification and selection committee must review and evaluate the proposals and recommend a list of bidders or offerors who will be eligible to receive a subsequent solicitation. (e) Director. The Director must approve, disapprove, or remand a recommendation for the proposed list of bidders or offerors eligible to receive a subsequent solicitation. (f) Subsequent solicitation. A request for expressions of interest does not directly lead to the award of a contract. Only those bidders or offerors determined to be eligible to receive a subsequent solicitation may participate in the subsequent solicitation. A subsequent solicitation may be accomplished through competitive sealed bids, competitive sealed proposals, or an informal solicitation. Proposals received under a request for expressions of interest may form a basis for justifying a noncompetitive contract award.

(a) Competitive negotiation may be used if: (1) no bid or proposal is received or only one bid is received by the time and date specified in the solicitation; (2) none of the bids or proposals received are acceptable; (3) none of the bids or proposals received meets County price or budget limitations, including fairness and reasonableness of price; or (4) none of the bidders or offerors are responsible. (b) The Director must announce by public notice the County's intent to enter into competitive negotiations. The public notice must name the person with whom the County intends to negotiate. (c) If no timely bid or proposal is received or only one timely bid is received, competitive negotiations may take place concurrently with all those solicited who indicate a desire to participate in the negotiations. If more than one bid or proposal is received, negotiations may be held with the bidder or offeror who most nearly meets the County's requirements, including price, to attempt to negotiate an acceptable offer. If negotiations fail with the most qualified bidder or offeror, negotiations may proceed to the next most qualified bidder or offeror.

A contract may be awarded under an informal solicitation if requirements, which should include monetary thresholds, established under regulations are met. An informal solicitation is a means to select a contractor other than by competitive sealed bids or competitive sealed proposals.

(a) A contract may be awarded without competition if the Chief Administrative Officer makes a written determination that the contract award serves a public purpose and: (1) there is only one source for the required goods, service, or construction which can meet the minimum valid needs of the County, including timeliness of performance; (2) the contract is in connection with potential or pending litigation, condemnation, or collective bargaining; (3) a proposed contractor or subcontractor has been specifically identified in a grant accepted by the County; or (4) a proposed contractor has been identified in an appropriation resolution approved by the Council. (b) A non-competitive award under paragraph (a)(1) must not be made without the approval of the Chief Administrative Officer if the value of the award exceeds the monetary threshold for an informal solicitation under Section 11B-13.

(a) The Director may award a contract to a person who meets pre-established minimum qualifications under an open solicitation. An open solicitation may only be used when the County can utilize the goods or services of all qualified offerors and expects to award a contract to each qualified person who applies for a contract subject to the availability of funds. An open solicitation permits the County to receive and act on an application for a contract award on a continuing basis. (b) An open solicitation must be accomplished under a plan approved by the Chief Administrative Officer which: (1) provides for periodic review and approval by the Chief Administrative Officer; (2) establishes a process for a person to apply for a contract; (3) provides for periodic public notice inviting potential contractors to apply for a contract; (4) establishes the criteria under which an application for a contract will be accepted or rejected; (5) uses a preapproved form contract which must be entered into by a successful applicant; and (6) ensures that the cost of all contracts entered into under the open-ended solicitation will not exceed available funds.

The Director may make or may authorize the head of a using department to make an emergency procurement when there exists a threat to public health, welfare, or safety under emergency conditions as defined in regulations. An emergency procurement must be made with competition to the extent practical under the circumstances.

The County Executive must adopt regulations prohibiting the dissemination of confidential information or documents to protect the integrity and competitive nature of the procurement system.

(a) Each using department must post each planned informal solicitation to purchase goods, services, and construction, with a value greater than $10,000 and less than $100,000, on a County web site for 5 business days before making a purchase or entering into a contract. Each purchase must be made as provided under Section 11B-13. (b) Each posting must contain: (1) the name and a brief description of the goods, services, or construction being procured; (2) the delivery schedule; (3) contact information for the department employee responsible for the purchasing; and (4) any other applicable performance requirement. (c) The Director may waive this posting requirement when a purchase is necessary to meet an imminent threat to public health, welfare, or safety. The Director must keep records on the number of waivers issued and the reason for each waiver, and must report this information to the Director of Economic Development, who must include this information in the annual report on the Local Small Business Reserve Program under Section 11B-69(b).

The Director may require bid security as a condition of submitting a competitive sealed bid. The Director must determine the amount of bid security. Bid security must be: (a) a bond provided by a surety company authorized and licensed to do business in this State; (b) cash; or (c) other security satisfactory to the County.

Specifications should be prepared to encourage, to the extent practical, maximum competition. Specifications must not be prepared to favor a prospective bidder or offeror. The specifications should describe the minimum valid needs of the County.

A contract must not be awarded to a bidder or offeror that is not responsible. A written determination of nonresponsibility of a bidder or offeror must be made under regulations. The Director may find a bidder or offeror nonresponsible if the bidder or offeror fails to provide in a timely manner information requested by the Director in connection with an inquiry with respect to responsibility.

(a) An invitation for bids, a request for proposals, or other solicitation may be canceled at any time when it is in the best interests of the County. (b) A bid or proposal may be rejected in whole or in part as specified in the solicitation.

(a) Any type of contract which promotes the best interests of the County may be used; however, compensation must not be based on cost plus a percentage of cost. A cost-reimbursement contract may be used if the Director determines that a cost-reimbursement contract is likely to be less costly to the County than any other type of contract or that it is impracticable to obtain the goods, services, or construction required except under a cost-reimbursement contract. Under a cost-reimbursement contract, compensation may be based on cost plus a fixed fee or an incentive fee. (b) Each contract must be documented and authorized by a County official authorized by regulation to bind the County to a contract. (c) A construction contract awarded under a competitive sealed bid must not prohibit the payment to a contractor of actual and direct damages that result from a delay in completing the project within contractual time limits if the delay is caused by the County unless the County acted to: (1) protect the public health or safety; or (2) conform to law.

(a) Specified period. Unless otherwise provided by law or regulation, a contract for goods, services, or construction may be entered into for any period of time deemed to be in the best interest of the County. The term of the contract and conditions of extension should be included in the solicitation, if any. At a minimum, appropriated funds must be available for the first fiscal period at the time of entering the contract sufficient to defray the cost to which the County would become obligated under the contract. Payment and performance obligations for succeeding fiscal periods must be subject to the availability and appropriation of funds. (b) Determination prior to use. Before using a multi-term contract, the Director must determine that: (1) estimated requirements over the period of the contract are reasonably firm and continuing; and (2) the contract will serve the best interests of the County by encouraging effective competition or otherwise promoting economies in County procurement. (c) Termination due to unavailability of funds in succeeding fiscal periods. When funds are not appropriated or otherwise made available to support continuation of performance in a subsequent fiscal period, the contract must be terminated without further cost to the County. (d) Contract price increase provision. A multi-term contract for residential solid waste, recycling, or yard waste collection and disposal must include a price increase provision for each year of the contract beginning after the end of the first year of the contract. A price increase provision must require the County to increase the contract price by an amount sufficient to compensate the contractor for an increase in wages paid to the employees performing work on a covered contract to the extent the increase in wages does not exceed the last general wage increase approved by the County for members of the service, labor, and trades bargaining unit established in Section 33-105(a)(1). A price increase provision must: (1) require the contractor to document that the increase in wages supporting the requested contract price increase are paid to the employees working on the contract during the year; and (2) permit the Director to audit the contractor’s payroll records to validate the increase in wages. This subsection does not prohibit a contract provision that would permit an increase in the contract price due to an increase in costs incurred by the contractor other than an increase in wages paid to the contractor’s employees performing work on the contract.

A contract is not valid until the Director of Finance certifies that the unencumbered balance in the appropriation is sufficient to defray the cost to which the County would become obligated under the contract.

A purchase or contract made in a manner contrary to the Charter, this Chapter, or regulations is voidable at the option of the County. However, a person who supplies goods, services, or construction in good faith to the County at the direction of a County employee may file a claim to receive compensation for goods, services, or construction accepted by the County. Compensation must not exceed a fair and reasonable price for the benefit received by the County. The violation which leads to the necessity for a claim must occur through no fault of the person making the claim.

The Director must use cost and price analysis for County contracts and contract modifications as provided in regulation.

(a) The Director may require a contractor to provide performance and payment security in an amount determined by the Director. Performance security guarantees performance of the contract. Payment security guarantees payment for all labor and materials, including leased equipment, provided to the contractor for the performance of work under the contract. (b) In a construction contract, the Director must require performance and payment security in an amount at least equal to that required by State law. (c) Performance and payment security must be: (1) a bond provided by a surety company authorized to do business in this State; (2) cash; or (3) other security satisfactory to the County.

The County may, at reasonable times, inspect the part of a plant, place of business, or place where the services are performed of a potential contractor, contractor, or any subcontractor which is related to the performance of any contract awarded or to be awarded by the County.

The County may inspect supplies and services at the contractor or subcontractor's facility and perform tests to determine whether they conform to solicitation requirements, or, after award, to contract requirements, and are therefore acceptable. The inspections and tests must be conducted under the terms of the solicitation and contract.

(a) Audit of cost or pricing data. The County may, at reasonable times and places, audit the books and records of any person who has submitted cost or pricing data under Section 11B-26 (Cost or Pricing Data) to the extent that the books and records relate to the cost or pricing data. Any person who submits cost and pricing data must maintain the books and records that relate to the cost or pricing data for 3 years from the date of final payment under the contract, unless a shorter period is authorized by contract. (b) Contract audit. The County may audit the books and records of a contractor or any subcontractor under any contract to the extent that the books and records relate to the performance of the contract. The books and records must be maintained by the contractor for a period of 3 years from the date of final payment under the prime contract and by the subcontractor for a period of 3 years from the date of final payment under the subcontract, unless a shorter period is authorized by contract.

All procurement records must be retained and disposed of under records retention guidelines and schedules in regulations.

(a) Actions covered. The Director must maintain a record for 5 years of any: (1) non-competitive contract award (Section 11B-14); (2) emergency procurement (Section 11B-16); (3) contract modification exceeding $25,000; (4) public entity contract (Section 11B-41); or (5) bridge contract (Section 11B-42). (b) Contents of record. The record must include: (1) each contractor's name; (2) the amount of each contract or contract modification; and (3) a listing of the goods, services, or construction procured under each contract or each contract modification. (c) Submission to County Council. A copy of the record required under this Section for the preceding fiscal year must be submitted to the Council by September 30 of each year.

(a) Each contractor and subcontractor must comply with the requirements of Chapter 27, and all federal civil rights requirements prohibiting discrimination in employment. Contractors must take affirmative action to ensure that all persons are treated in accordance with the provisions of Chapter 27. (b) In the event of a noncompliance by a contractor or subcontractor with the nondiscrimination requirements, the contract or subcontract may be canceled, terminated, or suspended in whole or in part and the contractor or subcontractor may be declared ineligible for further County contracts. Other sanctions may be imposed and remedies invoked as provided in regulations or by contract. Contractors are required to bind their subcontractors contractually to the provisions of this Section.

(a) Scope. Any contract for procurement of services by a County department or office must require the contractor and any subcontractor to comply with the wage requirements of this Section. As used in this Section, “covered employer” refers to any contractor or subcontractor that is subject to this Section. (b) Exceptions to coverage. This Section does not apply to: (1) a contractor who, at the time a contract is signed: (A) has received less than $50,000 from the County in the most recent 12-month period; and (B) will be entitled to receive less than $50,000 from the County under that contract in the next 12-month period; (2) a contract with a public entity; (3) a contract with a nonprofit organization that has qualified for an exemption from federal income taxes under Section 501(c)(3) of the Internal Revenue Code; (4) a non-competitive contract awarded under Section 11B-14 if the Chief Administrative Officer finds that the performance of the contract would be significantly impaired if the wage requirements of this Section applied; (5) a contract for electricity, telephone, cable television, water, sewer, or similar service delivered by a regulated public utility; (6) a contract for services needed immediately to prevent or respond to an imminent threat to public health or safety; (7) an employer to the extent that the employer is expressly precluded from complying with this Section by the terms of any federal or state law, contract, or grant; (8) a bridge contract entered into under Section 11B-42; or (9) a contract entered into under a cooperative procurement under Section 11B-40. The Executive by regulation may increase the amount in subsection (b)(1) to reflect increases in the cost of living. (c) Solicitation requirements. (1) Each bid or proposal to provide services to the County must specify how the contractor and each subcontractor will comply with these wage requirements, and must include sufficient funds to meet these requirements. The Director, for good cause shown, may permit a bidder or proposer to provide this information after the bid or proposal is submitted if: (A) the information is provided before the time for evaluation of the bid or proposal and no later than contract award; (B) the original bid or proposal price does not change; and (C) the Director approves the later submission in writing. (2) Each bid or proposal to provide services to the County which is submitted by an organization that is exempt from coverage under subsection (b)(3) must specify the wage the organization intends to pay to those employees who will perform direct, measurable work under the contract, and any health insurance the organization intends to provide to those employees. In evaluating the cost of a bid or proposal the County must disregard any additional cost attributable to payment of the wage requirements of this Section by any organization that is exempt from coverage under subsection (b)(3) when compared to a bid or proposal submitted by another organization that is also exempt from coverage under subsection (b)(3). (3) A contractor must not split or subdivide a contract, pay an employee through a third party, or treat an employee as a subcontractor or independent contractor, to avoid the imposition of any requirement under this Section. (d) Health insurance. (1) Definitions. As used in this subsection; Health insurance means insurance coverage that is part of an employer benefit package that pays for medical expenses incurred by an employee and an employee’s family either by reimbursing the employee or by paying the care provider directly and provides the minimum essential health benefits required under the Patient Protection and Affordable Care Act, 26 U.S.C. §5000A, as amended. Maryland Health Benefit Exchange means the public corporation and independent unit of Maryland State government established in Title 31 of the Maryland Insurance Code. (2) A contractor or subcontractor who does not provide health insurance for an employee who provides services to the County must: (A) report to the Director the job title and salary for each employee providing services to the County under the contract who does not have health insurance without identifying confidential medical information; and (B) permit each employee without health insurance to meet with a County representative designated by the Director of Health and Human Services during normal work hours to receive help applying for health insurance on the Maryland Health Benefit Exchange, including any available Federal tax subsidy. (3) The Director of the Department of Health and Human Services or a designee must assist any employee of a contractor or subcontractor without health insurance who requests help to apply for health insurance on the Maryland Health Benefit Exchange, including any available Federal tax subsidy. (4) Each contractor must submit a quarterly payroll report to the Chief Administrative Officer for each employee of the contractor or any subcontractor who performed services on the contract that includes: (A) the wages paid to the employee; and (B) the employer and the employee share of any health insurance premium provided to the employee. (5) The Director must retain the quarterly payroll reports submitted by the contractor under paragraph (4) for at least 3 years after the completion of the contract. On or before each September 1, the Director must report to the Executive and the Council the number of employees of a contractor or subcontractor who provided services to the County during the previous fiscal year who had health insurance and the number of employees who did not have health insurance. (e) Wage requirement. (1) Each covered employer must pay each employee who is not exempt under subsection (f) a gross wage of at least $10.50 per hour during the time the employee actually provides services to the County. For employees who are not paid an hourly wage, compliance with the wage requirement must be measured by dividing the amount paid to the employee each pay period by the number of hours worked each pay period. (2) The Chief Administrative Officer must adjust the wage rate required under this subsection, effective July 1 of each year, by the annual average increase, if any, in the Consumer Price Index for All Urban Consumers (CPI-U) for the Washington-Arlington-Alexandria Core Based Statistical Area (CBSA), as published by the United States Department of Labor, Bureau of Labor Statistics, or any successor index, for the previous calendar year. The Chief Administrative Officer must calculate the adjustment to the nearest multiple of 5 cents, and must publish the amount of this adjustment not later than March 1 of each year. Each adjustment under this paragraph applies to any contract covered by this Section which: (A) is in effect when the adjustment takes effect, or (B) takes effect during the next 12 months. (3) A covered employer must not make any deduction for any item necessary for an employee to perform the essential job function unless the deduction is permitted by Executive regulation. (f) Exceptions to wage requirement. The wage requirements of this Section do not apply to any employee: (1) who performs no measurable work related to any contract with the County; (2) who participates in a government-operated or -sponsored program that restricts the earnings of or wages paid to employees to a level below the wage required under this Section; or (3) who participates for no longer than 120 days in any calendar year in a government-operated or -sponsored summer youth employment program. (g) Wage reporting. (1) The Director must insert into each contract subject to this Section a provision that requires a covered employer to submit to the Director a report (on a schedule determined by the Director) showing a summary of the wages paid to its employees, who performed direct, measurable work under the contract, by gender and race. (2) Each contractor and subcontractor must submit a complete copy of its payroll records for work performed on a contract covered by this Section to the Chief Administrative Officer or a designee within 14 days after the end of each quarter. (3) The payroll records must contain a statement signed by the contractor or subcontractor certifying that: (A) the payroll records are correct; and (B) the wage rates paid are not less than those required by this Section. (4) Each payroll record must include: (A) the name, address, and telephone number of the contractor or subcontractor; (B) the name and location of the job; and (C) each employee’s: (i) name; (ii) current home address, unless previously reported; (iii) daily straight time and overtime hours; (iv) total straight time and overtime hours for the payroll period; (v) rate of pay; (vi) fringe benefits by type and amount; (vii) gross wages; and (viii) the employer and the employee share of any health insurance premium provided to the employee. (5) Each contractor or subcontractor must: (A) keep payroll records covering work performed on a contract covered by this Section for not less than 5 years after the work is completed; and (B) subject to reasonable notice, permit the Chief Administrative Officer or a designee to inspect the payroll records at any reasonable time and as often as the Chief Administrative Officer deems necessary. (6) The Chief Administrative Officer or a designee must make payroll records obtained from contractors or subcontractors under this Section available for public inspection during regular business hours for 5 years after the Chief Administrative Officer receives the records, unless disclosure of a record is prohibited under federal or state law. (7) Prohibition against retaliation. Except as provided in paragraph (8), a covered employer must not discharge or in any other manner discriminate or retaliate against an employee, who performed direct, measurable work under the contract, because the employee: (A) has inquired about, discussed, or disclosed the wages of the employee or another employee; (B) asserts any right under this subsection; or (C) files any complaint for violation of this subsection. (8) The prohibition against retaliation under paragraph (7) does not apply to an employee who has access to wage information of other employees or applicants as part of the employee’s essential job functions and discloses the wages of other employees or applicants to individuals who do not otherwise have access to the information, unless the disclosure is in response to: (A) a formal complaint or charge; (B) in furtherance of an investigation, proceeding, hearing, or action, including an investigation conducted by a covered employer; or (C) is consistent with the contractor’s legal duty to furnish information. (9) The Director may refer a report to the Office of Human Rights for investigation of a possible violation of Chapter 27, Human Rights and Civil Liberties. (10) On or before December 31, 2019, the Director must submit to the County Executive and the County Council a report on the evaluation of the wage data submitted by contractors and subcontractors under paragraph (1). This report must include: (A) the number of reports reviewed; (B) the number of reports referred to the Office of Human Rights for investigation; (C) the number of probable cause findings by the Office of Human Rights resulting from these reports; (D) a list of sanctions imposed upon a contractor for a violation of subsection (g); and (E) any other information the Director finds relevant to evaluate the effect of this reporting requirement on wage equity. (h) Conflicting requirements. If any federal, state, or County law or regulation requires payment of a higher wage, that law or regulation controls. If any applicable collective bargaining agreement requires payment of a higher wage, that agreement controls. (i) Enforcement. (1) The Chief Administrative Officer must require each covered employer to: (A) certify that the employer and each subcontractor is aware of and will comply with the applicable wage requirements of this Section; (B) keep and submit any records necessary to show compliance; and (C) conspicuously post notices informing employees of the requirements of this Section, and send a copy of each such notice to the Chief Administrative Officer’s designee. (2) The Chief Administrative Officer or a designee must perform random or regular audits and investigate any complaint of a violation of this Section. If the Director determines that a provision of this Section has been violated, the Director must issue a written decision, including imposing appropriate sanctions, and may withhold from payment due the contractor, pending a final decision, an amount sufficient to: (A) pay each employee of the contractor or subcontractor the full amount of wages due under this Section; (B) satisfy a liability of a contractor for liquidated damages as provided in this Section; and (C) reimburse the County for the cost of the audit. (3) An employer must not discharge or otherwise retaliate against an employee for asserting any right under this Section or filing a complaint of violation. Any retaliation is subject to all sanctions for noncompliance with this Section. (4) The sanctions of Section 11B-33(b) which apply to noncompliance with nondiscrimination requirements apply with equal force and scope to noncompliance with the wage requirements of this Section. (5) Each contract may specify that liquidated damages for any noncompliance with this Section includes the amount of any unpaid wages, with interest, and that the contractor is jointly and severally liable for any noncompliance by a subcontractor. In addition, each contract must specify: (A) that liquidated damages may be imposed on the contractor in the event that a covered employer violates the wage reporting or payroll records reporting requirement in subsection (g), including for providing late or inaccurate payroll records; and (B) that an aggrieved employee, as a third-party beneficiary, may by civil action enforce the payment of wages due under this Section and recover any unpaid wages with interest, a reasonable attorney’s fee, and damages for any retaliation for asserting any right under this Section. (6) If a contractor or subcontractor fails to submit, or is late in submitting, copies of any payroll record or other report required to be submitted under this Section, the County may deem invoices unacceptable until the contractor or subcontractor provides the required records or reports, and may postpone processing payments due under the contract or under an agreement to finance the contract. (j) Report. The Chief Administrative Officer must report annually to the Council and Executive on the operation of and compliance with this Section. In addition, the report filed under Section 11B-61(a) each year must compute the number of contracts and subcontracts with minority-owned businesses that are subject to the requirements of this Section, and how that number has changed since the year before those requirements took effect. (a) apply to any contract in effect on or after the date this Act takes effect; and (b) are not effective after July 1, 2017.

(a) Purpose. Sound fiscal management requires vigilance to ensure that County funds appropriated for a service contract or a grant award to participate in a County-funded program are expended solely for the public purpose for which they are appropriated. If County funds are appropriated for a service contract or a grant award to participate in a County-funded program, and those funds are instead used to encourage, discourage, or otherwise influence union activity or organization, the proprietary interests of the County are adversely affected. The use of County funds to encourage, discourage, or otherwise influence employees from union activity or organizing constitutes a misuse of County resources. (b) Use of Funds. County funds appropriated for a service contract or a grant award to participate in a County-funded program must not be encumbered or used to assist, promote, deter, or otherwise influence union activity or organizing. Nothing in this Section shall be construed to prohibit the expenditure of County funds appropriated for a service contract or a grant award from being used to perform another act required by law. (c) Specific Restrictions. County funds for a service contract or a grant award to participate in a County-funded program must not be used to: (1) prepare, mail, or otherwise distribute materials related to union activity or organizing; (2) hire an attorney or a consultant to assist, promote, deter, or otherwise influence union activity or organizing; (3) encourage, discourage, or otherwise influence an employee from taking a position on union organizing in the workplace; (4) prevent or facilitate access to an employer’s facilities or property by a labor organization or its representatives; (5) encourage or discourage a program manager, policy council, committee, or community or parent group from assisting or participating in a union activity or organizing. (d) Enforcement. (1) The Chief Administrative Officer must require each contractor or grantee to: (A) Certify that the contractor or grantee will not expend County funds to assist, promote, deter, or otherwise influence union activity or organizing and will comply with the requirements of this Section. (B) Keep and submit any records associated with County funds received for a service contract or a grant award to participate in a County-program necessary to show compliance. A contractor or grantee must provide these records to the County upon request. (2) The Chief Administrative Officer must enforce this Section and investigate any complaint of a violation. (e) Penalty. A contractor or grantee must pay the County the amount of funds expended in violation of this Section.

(a) Definitions. In this Section, the following words have the meanings indicated: Apprentice means an individual who: (1) is at least 16 years old; (2) has signed an agreement with an employer or employer’s agent, an association of employers, an organization of employees, or a joint committee, that includes a statement of: (A) the trade, craft, or occupation that the individual is learning; and (B) the beginning and ending dates of the apprenticeship; and (3) is registered in a program of a Council or Bureau of Apprenticeship and Training of the United States Department of Labor. Construction means work defined in Section 11B-1(c). County financed construction contract means a contract for construction work that is awarded by the County or where County funds are used to finance all or part of the cost of the contract. A county financed construction contract includes a construction contract that receives in whole or part a payment in lieu of taxes solely under Section 52-24(b), unless the qualified housing development: (1) does not exceed four (4) stories above ground level; or (2) is provided under Section 52-24(c). County funds means any: (1) funds directly appropriated by the County; or (2) ggrant funding for construction under Section 20-75 that cumulatively exceeds $250,000 or the prevailing wage threshold limit, whichever is lower. Employee means a laborer, apprentice, journeyman, or mechanic employed by a contractor or subcontractor on a County financed construction contract. Payment in Lieu of Taxes or PILOTs means an authorized payment made by the owner of a qualifying housing development instead of paying the County real property tax, including real property tax levied under a special area taxing law, that would otherwise be due. Prevailing wage means the hourly wage rate set by the State Commissioner of Labor and Industry for State-funded construction contracts in the County. Prevailing wage threshold limit means the minimum dollar amount for a construction contract subject to the State prevailing wage law under §17-202 of the State Finance and Procurement Article of the Maryland Code, as amended. (b) Exclusions. Except as provided in subsection (9), this Section does not apply to a County financed construction contract: (1) of less than $250,000 or the prevailing wage threshold limit, whichever is lower; (2) that is subject to a Federal or State prevailing wage law; (3) awarded without competition under Section 11B-14; (4) with a public entity; (5) to the extent that the contractor is expressly precluded from complying with this Section by the terms of any Federal or State law, contract, or grant; (6) entered into as a bridge contract under Section 11B-42; (7) entered into as a cooperative procurement under Section 11B-40; or (8) which results from an emergency procurement under Section 11B-16. (9) This Section applies to a mechanical systems service contract with a contract value in excess of the threshold amount codified at 41 U.S.C. 6702(A)(2), the McNamara-O’Hara Service Contract Act of 1965, as amended. (c) Payment of prevailing wage. Any contractor and subcontractor that performs direct and measurable construction work on a County financed construction contract must pay each employee at a rate equal to or more than the prevailing wage in effect when the solicitation is published for the type of work performed. (d) Prevailing wage. (1) Basic rate. The prevailing wage rate is the prevailing wage rate established annually by the Commissioner of Labor and Industry for State financed construction work performed in the County by an employee who performs direct and measurable work. (2) Overtime rate. A contractor or subcontractor must pay an employee at a rate equal to or more than the prevailing wage rate for overtime for the type of work performed for each hour that the employee performs direct and measurable work: (A) more than 10 hours in any single calendar day; (B) more than 40 hours in a workweek; or (C) on a Sunday or a legal holiday. (3) Deductions. A contractor or subcontractor may only make fair and reasonable deductions that are: (A) required by law; (B) authorized in a written agreement between an employee and an employer signed at the beginning of employment that: (i) concerns food, sleeping quarters, or similar items; (ii) is submitted by the employer to the Chief Administrative Officer or a designee; or (C) required or allowed by a collective bargaining agreement between a bona fide labor organization and a contractor or subcontractor. (4) Apprentices. Each apprentice must be paid at least the rate that the State’s Apprenticeship and Training Council sets for an apprentice in the trade involved, based on a percentage of the prevailing wage rate in that trade. (e) Contract requirements. Each contract covered by this Section must: (1) require the contractor and subcontractor to comply with this Section; (2) specify that an aggrieved employee, as a third-party beneficiary, may by civil action recover the difference between the prevailing wage for the type of work performed and the amount actually received, with interest and a reasonable attorney’s fee; and (3) require best efforts to hire Montgomery County residents for at least 25% of the new jobs to complete the County financed construction contract that exceeds the prevailing wage threshold limit. (4) For the proper implementation and enforcement necessary to carry out the purposes of this Section, the Director may adopt and amend regulations in accordance with this Section. (f) Reporting Requirement. For each quarter of the finance construction contract, the contractor must submit a report to the Department, on a form designated by the Director, with the following: (1) the number of employees needed for the contract; (2) the number of current employees transferred; (3) the number of new job openings created; (4) the number of job openings listed in the department; (5) describe efforts made to fill the open positions with local County residents; (6) the total number of Montgomery County residents hired for the reporting period and for new hires: (A) name; (B) last four numbers of their social security number; (C) job title; (D) address; and (E) hire date. (g) Violations. (1) If the Director determines that a contractor has not made best efforts or reported as required under this section, the Director shall issue a written decision detailing the bases for the determination. (2) A contractor may appeal a written decision of the Director that the contractor violated a provision of this section to the Department within 10 working days after receiving a copy of the decision. (3) If the contractor does not appeal the Director’s decision within 10 working days after receipt, the decision of the Director is deemed final and not appealable. (h) Untimely Reporting. If a contractor is late in submitting reports required to be submitted under this section, the County may postpone payments due under the contract until the required reports are submitted. (i) Misclassification of employees. (1) A contractor or subcontractor must not split or subdivide a contract, pay an employee through a third party, or treat an employee as a subcontractor or independent contractor to avoid any requirement of this Section. (2) A laborer may perform any work that is not ordinarily performed by a mechanic or mechanic’s apprentice, but must be paid the prevailing wage rate for the work performed. (3) A laborer receiving the prevailing wage rate for laborers must not perform work ordinarily performed by a mechanic or mechanic’s helper. (4) If a laborer performs work ordinarily performed by any mechanic or mechanic’s apprentice, the laborer must be paid for the entire time of performance of that work at the prevailing wage rate for a mechanic. (j) Helper and trainee restrictions. A contractor or subcontractor must not employ any individual classified as a helper or trainee to perform direct and measurable work on a contract covered by this Section. (k) Posting requirements. Each contractor and subcontractor must post a clearly legible statement of each prevailing wage rate in a prominent and easily accessible place at the work site during the entire time work is being performed in English and any other language that is primarily spoken by the employees at the work site. (l) Payroll records. (1) Each contractor and subcontractor must submit a complete copy of its payroll records for construction work performed on a contract covered by this Section to the Chief Administrative Officer or a designee within 14 days after the end of each payroll period. (2) The payroll records must contain a statement signed by the contractor or subcontractor certifying that: (A) the payroll records are correct; (B) the wage rates paid are not less than those required by this Section; and (C) the rate of pay and classification for each employee accurately reflects the work the employee performed. (3) Each payroll record must include: (A) the name, address, and telephone number of the contractor or subcontractor; (B) the name and location of the job; and (C) each employee’s: (i) name; (ii) current address, unless previously reported; (iii) specific work classification; (iv) daily straight time and overtime hours; (v) total straight time and overtime hours for the payroll period; (vi) rate of pay; (vii) fringe benefits by type and amount; and (viii) gross wages. (4) Each contractor or subcontractor must: (A) keep payroll records covering construction work performed on a contract covered by this Section for not less than 5 years after the work is completed; and (B) subject to reasonable notice, permit the Chief Administrative Officer or a designee to inspect the payroll records at any reasonable time and as often as necessary. (5) The Chief Administrative Officer or a designee must make payroll records obtained from contractors or subcontractors under this Section available for public inspection during regular business hours for 5 years after the Chief Administrative Officer receives the records. (m) Enforcement. (1) The Chief Administrative Officer or a designee may perform random or regular audits and investigate any complaint of a violation of this Section. If the Director determines that a provision of this Section has been violated, the Director must issue a written decision, including appropriate sanctions, and may withhold from payment due the contractor, pending a final decision, an amount sufficient to: (i) pay each employee of the contractor or subcontractor the full amount of wages due under this Section; and (ii) satisfy a liability of a contractor for liquidated damages as provide in this Section. (2) A contractor or subcontractor must not discharge or otherwise retaliate against an employee for asserting any right under this Section or for filing a complaint of a violation. (3) The sanctions of Section 11B-33(b) which apply to noncompliance with nondiscrimination requirements apply with equal force and scope to noncompliance with this Section. (4) Each contract subject to this Section may specify the payment of liquidated damages to the County by the contractor for any noncompliance with this Section. (5) Each contractor is jointly and severally liable for noncompliance with this Section by a subcontractor. (6) If a contractor or subcontractor is late in submitting copies of any payroll record required to be submitted under this Section, the County may deem invoices unacceptable until the contractor or subcontractor provides the required records, and may postpone processing payments due under the contract or under an agreement to finance the contract. (7) A contractor may appeal a written decision of the Director that the contractor violated a provision of this Section to the Chief Administrative Officer within 10 working days after receiving a copy of the decision. The Chief Administrative Officer must designate a hearing officer to conduct a hearing under Chapter 2A upon receipt of a timely appeal. If the contractor does not appeal a written decision within 10 working days after receipt, the decision of the Director becomes final and binding. (n) Report. The Chief Administrative Officer must report annually to the Council and Executive on the operation of and compliance with this Section.

(a) Definitions. For purposes of this Section, the following terms have the meanings indicated. Human trafficking has the meanings stated under state and federal law. Human trafficking includes the offenses stated under: (1) Sections 3-1102 {Sex trafficking} and 3-1202 {Labor trafficking} of the Criminal Law Article of the Maryland Code, as amended; and (2) Chapter 77 {Peonage, Slavery, and Trafficking in Persons} of Part I of Title 18 of the United States Code, as amended. (b) Bidding and proposal requirement. Each bid or proposal submitted to the County in response to an invitation for bids or request for proposals must certify that the bidder or offeror has not been found, by an administrative or judicial body, to have violated a federal or state law against human trafficking. (c) Contractual requirements. A contract valued above the threshold for an invitation for bids or request for proposals must require the contractor and any subcontractor: (1) to comply with all federal and state laws against human trafficking; (2) to certify that the contractor has not been found, by an administrative or judicial body, to have violated a federal or state law against human trafficking; (3) if the contractor or subcontractor is charged with a criminal offense, or subject to a civil claim, involving human trafficking, to notify the Director in writing within 3 days after receiving notification of the charge or claim; and (4) if the contractor or subcontractor is found by an administrative or judicial body to have violated a law against human trafficking, or to have liability related to human trafficking, to notify the Director in writing within 3 days after receiving notification of the finding. (d) Enforcement. (1) Within 3 days after receiving a notification under subsection (c), the Director must transmit a copy of the notification to the Executive and the Council. (2) If the Director finds that a contractor or subcontractor failed to comply with the requirements of paragraphs (c)(1) and (c)(4) or made a false certification under subsections (b) or (c), the Director must pursue remedies under the terms of the contract and this Chapter, which may include termination of the contract and debarment.

(a) In this Section, the following terms have the meanings indicated: (1) contract administrator means the person designated in the contract to accept invoices on behalf of the County for goods, services, or construction provided; and (2) proper invoice means a written request from a contractor for payment from the County for performance under a contract that: (A) complies with all documentation requirements under the contract and regulation; (B) represents work covered by the contract that has been satisfactorily performed, validated, and certified by County representatives; and (C) identifies the contract number or adequately describes the contract. (b) It is the policy of the County to make a payment under a contract within 30 days after the day that: (1) payment becomes due under the contract; or (2) the County contract administrator receives a proper invoice; whichever is later. (c) (1) (d) Except as provided in subsection (d), interest accrues at a rate set under Executive Regulations on any amount that: (A) is due and payable by law and under the contract; and (B) remains unpaid for more than 45 days after the County contract administrator receives a proper invoice. (2) Interest accrues beginning on the 31st day after the day that: (A) payment becomes due under the contract; (B) the County contract administrator receives a proper invoice; and (C) the goods and services have been delivered and accepted. However, for a progress payment for construction services, interest accrues on the 31st day after the day subparagraphs (A) and (B) of this paragraph are both met. (d) The County is not liable for interest: (1) unless, within 30 days after the date on the County's check for the amount on which the interest accrued, the contractor submits a written request for the interest that identifies the contract number or otherwise adequately identifies the contract; (2) if the invoice is for work that is: (A) the subject of a contract claim; or (B) for a payment that is not made because of a disagreement over the amount of the payment or compliance with the contract; (3) on an amount that represents unpaid interest; (4) accruing more than one year after interest may begin to accrue under this Section; or (5) unless the contractor has included in each subcontract entered into as a result of the contract with the County an obligation for the contractor to pay the subcontractor interest for late payment in an amount and under the same conditions as the County must pay interest for late payment to the contractor. (e) A dispute over County liability for interest under this Section must be decided by the Chief Administrative Officer. (f) If, in the discretion of the Chief Administrative Officer, an award of predecisional interest should be made in order to provide a contractor who has substantially prevailed on a contract dispute with a fair remedy, the Chief Administrative Officer may award predecisional interest in the amount specified in subsection (c). Predecisional interest accrues from the 31st day after the contract dispute has been filed with the Chief Administrative Officer in accordance with regulations.

(a) Dispute submitted. A contractor must submit any dispute arising under a contract to the Director. The using department may submit a dispute arising under the contract to the Director. (b) Decision by Director. The Director must give the contractor and the using department a written decision approving or denying the dispute in whole or in part within 45 days after receiving the dispute. If the Director does not resolve the dispute within 45 days, the dispute is denied. (c) Appeal to Chief Administrative Officer. (1) The contractor or the using department may appeal the Director's decision resolving a dispute in writing to the Chief Administrative Officer within 30 days after receiving the Director's decision, or if no decision is rendered, within 75 days after submitting the dispute. (2) The Chief Administrative Officer must decide the appeal after considering any written information submitted by the Director, using department, and the contractor. (3) The Chief Administrative Officer may hold a hearing on the appeal. The Chief Administrative Officer must complete any hearing on the appeal within: (A) 60 days after receiving the appeal for disputes involving less than $50,000; (B) 90 days after receiving the appeal for disputes involving between $50,000 and $100,000; and (C) 135 days after receiving the appeal for disputes involving more than $100,000. (4) The Chief Administrative Officer may require the contractor and the using department to provide additional information about the dispute. (5) The Chief Administrative Officer must give the contractor and the using department a written decision approving or denying the dispute in whole or in part within 30 days after receiving the appeal or, if a hearing is held, within 30 days after receiving the hearing officer's report. If the Chief Administrative Officer does not give the contractor and using department a written decision on the appeal within the applicable period, the dispute is denied. (d) Appeal to court. (1) The contractor may appeal the Chief Administrative Officer's decision to the Circuit Court under the Maryland Rules. (2) The contractor or the County may appeal the decision of the Circuit Court to the Court of Special Appeals under State law. (3) In the event of a statutory denial under subsection (b), the contractor or the County may file a legal action in a court of appropriate jurisdiction. That court must hear the case de novo. (e) Consolidation of disputes. The Director or the Chief Administrative Officer may consolidate multiple disputes if: (1) the disputes have common questions of law or fact; and (2) the contractor or using department requests consolidation. The time limits in this Section for the last dispute filed apply to any consolidated dispute. (f) Extension of time. A contractor and the County may agree to extend any time limit in this Section. (g) Alternative dispute resolution. A contractor and the County may agree to submit a dispute to mediation or binding arbitration at any time instead of using the administrative dispute resolution process in paragraphs (b), (c), and (d).

(a) Definitions. In this Section, the following words have the meaning indicated: Covered employee means an employee of a contractor or subcontractor that performs or performed services under a contract subject to this Section. Employer means a contractor or subcontractor that, through the use of a covered employee, performs or performed services under a County contract. Personnel action means an act or omission by the employer that has a significant adverse impact on the employee, or a change in the employee’s duties or responsibilities which is inconsistent with the employee’s position and salary. (b) Policy. A covered employee must not be subjected to a personnel action by the Employer for disclosing, to a County official or employee, information involving the solicitation, award, administration, or performance of any contract that the employee reasonably believes is: (1) an abuse of authority, gross mismanagement, or gross waste of money; (2) a substantial and specific danger to public health or safety; or (3) a violation of law. (c) Each contract must: (1) prohibit retaliation by the Employer against a covered employee who discloses any illegal or improper action described in subsection (b); and (2) specify that an aggrieved covered employee, as a third-party beneficiary, may by civil action recover compensatory damages, including interest and a reasonable attorney’s fee, against the employer for retaliation in violation of this Section. (d) In addition to other authority granted by law, the Director may cancel, terminate, or suspend a contract, in whole or in part, and declare a contractor or subcontractor ineligible for further County contracts based upon a final court judgment in favor of a covered employee for retaliation in violation of this Section. The Director may impose other appropriate sanctions and remedies as provided in applicable regulations or by contract. Each Contractor must bind its subcontractors contractually to comply with this Section. (e) This Section does not prohibit a personnel action against a covered employee that would have been taken regardless of a disclosure of information described in subsection (b).

(a) Right to protest. Any actual or prospective bidder or offeror who is aggrieved in connection with a formal solicitation may challenge a decision regarding the formal solicitation. A bidder or offeror is aggrieved only if the bidder or offeror can demonstrate that should the protest be sustained, the bidder or offeror may be eligible for the award, or the bidder or offeror may be eligible for the award of costs under subsection (h). The protest must be filed in writing with the Director: (1) within 10 days after the Director publicly lists the proposed contract award if the bidder or offeror seeks as a remedy the award of the contract or costs under subsection (h); and (2) before the submission date for bids or proposals if the bidder or offeror seeks as a remedy the cancellation or amendment of the solicitation. (b) Authority to resolve protests. The Director has the authority to settle or resolve a protest under regulations. (c) Appeal to Chief Administrative Officer. An actual or prospective bidder or offeror who is aggrieved by the decision of the Director may challenge the decision of the Director. The appeal must be filed in writing with the Chief Administrative Officer within 10 days of the Director's decision. (d) Hearing. The Chief Administrative Officer may hold a hearing if necessary to resolve an appeal and may designate a hearing officer to take evidence, and make proposed findings and a recommendation. (e) Decision. If the appeal is not resolved by mutual agreement, the Chief Administrative Officer in consultation with the County Attorney must adjudicate the protest on the record and issue a written decision. The decision must: (1) state the reasons for the action taken; and (2) inform the appellant of the right to an administrative appeal to the Circuit Court under the Maryland Rules. (f) Appeal to court. The appellant may appeal the decision of the Chief Administrative Officer to the Circuit Court under the Maryland Rules. The appellant and the County may appeal the decision of the Circuit Court to the Court of Special Appeals. (g) Award of contract during a protest. In the event of a timely protest or appeal, the Director, after consultation with the head of the Using Department, may award the contract without delay if the Director determines in writing that awarding the contract without delay is necessary to protect the interests of the County. (h) Entitlement to costs. Any judgement in favor of a protesting bidder or offeror is limited to reasonable bid or proposal preparation costs if: (1) the protesting bidder or offeror should have been awarded the contract; and (2) the award has been made to another.

(a) Debarment. After reasonable notice to the person involved and reasonable opportunity for that person to respond, the Director, after consultation with the Using Department and the County Attorney, may debar a person for cause from consideration for award of contracts. The Director must determine the length of time the contractor is debarred. The length of time should not be less than the time which would be expected to include one or more solicitations for the type of work being provided by the debarred contractor. The debarment time imposed by the Director is not limited by the debarment time imposed by another public entity. The Director may hold a hearing if necessary to determine if a person should be debarred and may designate a hearing officer to take evidence and propose findings to the Director. (b) Suspension. The Director, after consultation with the Using Department and the County Attorney, may suspend a person from consideration for award of contracts if there is probable cause for debarment. The suspension must not be for more than 6 months. (c) Causes for debarment or suspension. The causes for debarment or suspension may include: (1) conviction for commission of a criminal offense incident to obtaining or attempting to obtain a public or private contract or subcontract, or in the performance of the contract or subcontract; (2) conviction of embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, kickbacks or any other offense indicating a lack of business integrity; (3) conviction under state or federal antitrust statutes arising out of the submission of bids or proposals; (4) violation of County contract provisions of a character which is regarded by the Director to be so serious as to justify debarment action. These provisions may include: (A) deliberate failure without good cause to perform under the specifications or within the time limit provided in the contract; or (B) a record of failure to perform or of unsatisfactory performance under the provisions of one or more contracts; however, failure to perform or unsatisfactory performance caused by acts beyond the control of the contractor are not a basis for debarment; (5) violation of the wage requirements in Section 11B-33A; (6) any other serious cause the Director determines to be so compelling as to affect the competency or integrity of a potential contractor, including debarment by another public entity; (7) violation of Section 11B-33D; (8) conviction, plea of nolo contendere, or sentencing for a criminal offense involving human trafficking, including offenses under: (A) Sections 3-1102 {Sex trafficking} and 3-1202 {Labor trafficking} of the Criminal Law Article of the Maryland Code, as amended; and (B) Chapter 77 {Peonage, Slavery, and Trafficking in Persons} of Part I of Title 18 of the United States Code, as amended; (9) finding by an administrative or judicial body of a violation of Subtitle 4 {Wages and Hours} of Title 3 of the Labor and Employment Article of the Maryland Code, as amended; or (10) violation of the ethical standards set forth in this Chapter or Chapter 19A. (d) Decision. The Director must issue a written decision to debar or suspend. The decision must: (1) state the reasons for the action taken; and (2) inform the debarred or suspended person of the right to an administrative appeal, after the decision becomes final, to the Circuit Court under the Maryland Rules. (e) The Director must send a copy of the decision to the person involved and the Chief Administrative Officer who may approve, revise, or remand the decision. If the Chief Administrative Officer takes no action within 5 working days, the decision of the Director becomes final. (f) Appeal to court. The debarred or suspended person may appeal the decision to debar or suspend to the Circuit Court under the Maryland Rules governing administrative appeals. The debarred or suspended person and the County may appeal the decision of the Circuit Court to the Appellate Court of Maryland.

If before an award the Director determines that a solicitation or proposed award of a contract is in violation of law or regulations, then the solicitation or proposed award must be: (a) canceled; or (b) revised to comply with the law.

If after an award the Director determines that a solicitation or award of a contract was in violation of law or regulations, then: (a) if the person awarded the contract has not acted fraudulently or in bad faith; (1) the contract may be ratified and affirmed; or (2) the contract may be terminated and the person awarded the contract must be compensated for the actual expenses reasonably incurred under the contract, plus a reasonable profit, prior to the termination; (b) if the person awarded the contract has acted fraudulently or in bad faith; (1) the contract may be declared null and void; or (2) the contract may be ratified and affirmed if the action is in the best interests of the County, without prejudice to the rights of the County to damages as may be appropriate.

The County may either participate in, sponsor, conduct, administer, or enter into a cooperative purchasing contract for the procurement of any goods, services, or construction, or the cooperative use of goods, services, or construction with a public entity. The cooperative procurement may include joint contracts or multi-party contracts. If the facilities and services of the Procurement Office are made available to another public entity, the Director may require the public entity to pay a fee for the services provided by the Procurement Office.

The County may without competition enter into a contract for the procurement of, use of, or sale of goods, services, or construction, with a public entity when it is in the best interest of the County.

The County may without competition enter into a contract with a person if: (a) the Director determines that: (1) the person has an existing contract with another public entity for the goods, services, or construction which the County would like to procure; (2) a bridge contract is in the best interest of the County; and (3) the contract between the person and the other public entity was awarded as the result of adequate competition; and (b) the person agrees to provide the County: (1) materially the same specifications being provided the other public entity; and (2) the same prices being charged the other public entity.

In this Article, unless the context indicates otherwise, the following terms have the following meanings: (a) Goods means goods owned by the County. (b) Surplus Goods means goods no longer of use to the County.

(a) The Director must ensure the management of goods during their entire life cycle. (b) Except as provided in subsection (f), the Director must dispose of surplus goods. In disposing the surplus goods, the Director may sell the goods by any competitive method which the Director determines is likely to bring the highest return to the County. These methods may include sealed bids, public auction, or trade in or exchange of goods. The Director may sell surplus goods by private sale if the Director determines that open competition is not likely to bring the highest return to the County. (c) After public notice, the Chief Administrative Officer may give, loan, or sell below fair market value, surplus goods to another public entity if the Chief Administrative Officer determines the disposition would benefit the residents of Montgomery County. Public notice may be given through the Montgomery County Register. (d) If surplus goods have no resale or scrap value, the Director may dispose of the goods in any responsible manner. (e) Notwithstanding any other provision of County law, any gun that is surplus must be destroyed. (f) During a period when the County is under a state of emergency order issued by the Federal, State, or County governments, the Director of the Office of Emergency Management and Homeland Security or the Director’s designee may dispose of goods donated to the County for use in the emergency without using a competitive method if: (1) the Director determines that the goods would be useful to others during the emergency; and (2) the goods are disposed of consistent with emergency procedures and prioritization guidelines established either by the public official declaring the state of emergency or by the Executive.

(a) The County Executive must adopt regulations to establish a process for the disposition of any real property owned or controlled by the County, other than surplus school facilities and property of nominal value identified in the regulation. The regulations must provide for: (1) coordination among County departments and outside agencies, including any municipality in which the real property is located; (2) opportunity to reserve property for alternative public use; (3) comparative analysis of reuse proposals from County departments and outside agencies before any disposition actions; and (4) public notice and hearing on possible dispositions before final decision on disposition, except that the County Executive may waive the public hearing requirement for any real property that: (A) has nominal value; or (B) is recommended to be reused by the County government. (b) As used in this Section the following words have the meanings indicated: (1) County Department means any department or office within the executive branch of the Montgomery County Government. (2) Disposition means a sale, a lease or license for a term of 2 years or longer, or a lease or other document which includes an option to buy. If a license or lease for an initial term of less than 2 years is extended or renewed beyond 2 years, that extension or renewal is a disposition. Disposition does not include: (A) a lease of or license to use any parkland, or any facility located on parkland, that the Parks Department operates or manages for the County; (B) a license to use County property that is coterminous with a contract for services performed by the licensee; (C) a license to use County property to provide child or adult day care services; (D) a sale or lease of property to the Housing Opportunities Commission for housing development; (E) a sale of one or more housing units obtained by the County using its right of first refusal under Section 11A-3 or 11A-4, Chapter 25A, or Chapter 53A, and resold for not less than the County paid; or (F) a transfer of County right-of-way that is needed to implement a road or transit project that is included in the applicable master or other land use plan. (3) Outside agency means: (A) the Housing Opportunities Commission; (B) the Maryland-National Capital Park & Planning Commission; (C) Montgomery College; (D) Montgomery County Public Schools; (E) the Revenue Authority; (F) the Washington Suburban Sanitary Commission; and (G) municipalities located in Montgomery County. (c) Unless the County Council waives this requirement under subsection (e)(2)(B), the Executive must not dispose of any property owned or controlled by the County at less than full market value. In case of a sale of property, full market value must be determined by at least one professional appraisal of the property obtained by the Director within 12 months before a declaration is submitted to the Council. (d) Before seeking Council approval of a declaration of no further need under subsection (e), the Executive must submit to the Council and allow the Council at least 30 days to comment on: (1) all material terms of the disposition, including the price or rent to be paid and any associated economic incentives; (2) any appraisal that the Executive relied on or will rely on in setting the property’s market value; and (3) the comparative analysis of reuse proposals required in paragraphs (a)(3) and (h), including any proposals received from an outside agency. In addition, the Executive should when practicable submit for prior Council review the parameters and material terms of a disposition that has not begun to be negotiated. Any document submitted under this subsection to the extent the document need not be disclosed under state law, must be treated as confidential. (e) (1) (a) In addition to the process required under subsection (a), before the disposition of any real property owned or controlled by the County (other than a property which has either nominal value or an appraised value lower than $100,000) becomes final: (A) the Executive must publish a declaration in the County Register and post a notice on the County website that the County has no further need for the property or, if the disposition is a lease or license, has no further need for the property during the term of the lease or license; and (B) the Council, by resolution adopted after the Council holds a public hearing with a least 15 days advance notice, must approve: (i) the Executive’s declaration of no further need; and (ii) any disposition of the property at less than full market value. (C) The Council may disapprove the Executive’s declaration of no further need if the Council finds that: (i) there is further need for the real property; (ii) a County department or outside agency has expressed need for the real property; or (iii) approval of the declaration is contrary to the public interest. (2) The Director must adjust the $100,000 floor in this subsection on July 1 every third year by the percentage increase or decrease in the applicable Consumer Price Index for All Urban Consumers (CPI-U) for the Washington-Arlington-Alexandria Core Based Statistical Area (CBSA), as published by the United States Department of Labor, Bureau of Labor Statistics, or any successor index, during the previous 3 calendar years, rounded to the nearest $1000. (3) The Council may waive the public hearing required by this subsection if it concludes that a hearing on a particular proposed disposition is not necessary to properly assess the proposed action. (4) If the Council does not act under this subsection within 60 days after the Executive has submitted the proposed action, the proposed action is automatically approved. The Council may extend the 60-day deadline by resolution if the Council President has informed the Executive, within 30 days after the Executive submitted the proposed action, that the Council has not received all information necessary to review the proposed action. If the 60 day deadline would fall during August or from December 15 through December 31, the deadline is automatically extended until the next scheduled Council session. (5) This subsection and subsection (c) do not apply to any disposition of property that will be used primarily for housing development if the recipient legally commits to the Director of the Department of Housing and Community Affairs that at least 30% of the housing units built on the property will be moderately priced dwelling units or other units that are exempt from the development impact tax under Section 52-41(g)(1)-(4). (f) (1) Notwithstanding any law to the contrary but subject to any applicable bond covenants, 25 percent of the proceeds from the sale of real property owned by the County must be transferred to the Montgomery Housing Initiative Fund to promote a broad range of housing opportunities in the County. (2) This subsection does not apply to real property in an area designated under Chapter 56 as an urban renewal area. (3) In this subsection: (A) “Proceeds” means the sale price of the real property, minus expenses the County incurs from the sale. (B) “Real property” includes the right to develop the space above real property (“air rights”). (4) The County Executive may waive this subsection for the portion of any proceeds from a sale that the County uses for a related purchase of real property. (g) The Executive must adopt regulations to establish a process for disposition of surplus schools. As used in this Section, “surplus school” means any building used at any time as a public school and later conveyed to the County and all or part of the land which constitutes the school site. The regulations must provide for: (1) the ultimate decision by the County Council, as required by state law, whether to dispose of a surplus school and its site, including any fields and recreational areas; (2) a statement from the Board of Education before a surplus school is disposed of that the school will not be needed for public educational uses in the foreseeable future, and in any case at least for 10 years after the proposed sale; (3) a statement from the Executive that the surplus school will not be needed for public recreational or human service uses in the foreseeable future; (4) (A) timely referral to the Planning Board for its review under state law of any proposal to dispose of a surplus school, and (B) a statement from the Board that the site will not be needed for park uses; (5) an opportunity to offer alternative proposals before the Executive recommends a disposition to the Council; (6) a public hearing by the Executive or the Executive’s designee, after reasonable notice, before any proposal to dispose of a surplus school is forwarded to the Council for action; (7) a preference for the disposition that best retains public access to the school and its athletic and recreational facilities; and (8) inclusion in any sale or lease with an option to buy of a clause that retains the County’s right to first refusal of any later sale of the property, subject to any mortgage or deed of trust then on the property, at fair market value. If the Council does not receive any statement required under paragraphs (2)-(4), it may nevertheless dispose of a surplus school if it finds, considering all factors, that the public interest will be best served by disposing of the school. (h) The Executive must adopt regulations to establish a process for leasing surplus schools. The regulations would apply in each case after the Council has adopted a reuse resolution which indicates what types of uses are acceptable. At a minimum, the regulations must require: (1) a process that offers potential users a fair opportunity to present reuse proposals to the Executive’s designee within the scope of uses approved by the Council reuse resolution; (2) referral of each proposed lease to the Council, Planning Board, and Board of Education for comment; (3) a reasonable opportunity for public comment before any lease is signed on behalf of the County; (4) continued community use of facilities such as auditoriums, gymnasiums, and playgrounds and playing fields except to the extent community access would unduly interfere with the lessee’s use of the property; and (5) preservation of the County’s right to retrieve the property on reasonable notice for public school use when requested by the Board of Education. Sec. 2. Applicability. This Act takes effect on the date when it becomes law [May 15, 2012]. County Code Section 11B-45, as amended by Section 1 of this Act, does not apply to any disposition of County property for which a legally enforceable contract, lease, or other agreement was signed by all parties before that date. Sec. 3. Applicability - White Flint Sector Plan area. Section 11B-45(b)-(e), as amended by Section 1 of this Act, does not apply to any sale by the County of real property located in the boundaries of the White Flint Sector Plan if: (a) the property was acquired by the County from the State Highway Administration; (b) the property was originally acquired by the State Highway Administration to construct Montrose Parkway; and (c) the sale by the County is completed on or before December 31, 2012. (a) Notwithstanding those provisions of County Code Section 11B-45 or Regulation 4-99AM referred to in subsection (b) to the contrary, the County Executive may contract with the Yeshiva High School of Greater Washington, Inc. to: (1) modify an existing lease-purchase agreement for the former Belt Junior High School to allow the County to reacquire that school and transfer it to Montgomery County Public Schools for public educational uses; and (2) at the same time enter into a lease agreement for the former Montgomery Hills Junior High School that would allow Yeshiva High School of Greater Washington, Inc. to lease and occupy that school after the County has made certain improvements to it. (b) Any agreement authorized by subsection (a) may: (1) be adopted without following the reuse process in sections 4.1 through 4.7 of Regulation 4-99AM; (2) have a longer term and greater notice of termination than required by section 6 of Regulation 4-99AM; (3) limit community use of interior spaces as necessary to provide the lessee adequate security; (4) allow the lessee to make certain minor capital improvements without County approval, and conform the rent credit provisions accordingly; and (5) modify the capital improvement reimbursement provisions of section 6.9 of Regulation 4-99AM. (c) Any agreement authorized by subsection (a) must: (1) be subject to the approval of the County Council; and (2) be referred to the Planning Board under state law in a timely manner for its review.

(a) In this article, the term real property means land and improvements to the land. (b) The County must advertise once each week for not less than 2 weeks in at least one newspaper of general circulation in the County any proposal to acquire real property by purchase, condemnation, or a lease for more than 5 years duration. The advertisement must set forth the price to be paid for the acquisition of the real property, if known, the location of the real property, the name of the owner of the real property, the purpose for which the real property is to be acquired, and the means by which the public may comment on the proposed acquisition. (c) The County Executive may hold a hearing to take public comment on the proposed acquisition of the real property. (d) If the owner of the real property which is proposed to be acquired by the County consents, the County must post a sign on the property for at least 10 days before the deadline for receiving public comment in a manner that can be most readily seen by the public. The sign must read substantially as follows: Montgomery County, Maryland proposes to purchase (or lease) this property for (statement of purpose). For date and manner of making public comment, telephone (telephone number). (e) After considering public comment, the County Executive may approve acquisition of the real property. The County Executive must notify the Council of each acquisition of real property. (f) This Section applies to real property to be acquired by a rescue squad or fire department if the purchase of the real property is to be funded in whole or in part by County tax funds. (g) This Section does not apply to: (1) land acquired by the County in connection with roads, streets, alleys, sidewalks, walkways, bridges, or drainage; or (2) real property acquired by gift.

All acquisition of land and improvements, by gift, purchase, or condemnation before May 1, 1960 by the County, County Board of Education, public library, or fire department, supported in whole or part by County tax funds are ratified and approved as though the acquisition conformed to this Chapter.

The County may contract with any incorporated town or taxing area in the County to provide to the municipality or taxing area goods, services, or construction of the type the County government performs for the County. The contract must specify the particular goods, services, or construction to be provided by the County and the fee to be charged. The fee must not be less than the cost incurred by the County, including a reasonable allowance for overhead costs. Any municipality or taxing area which receives and pays for work is not liable in damages to any person solely on the claim that the work was performed in a negligent or faulty manner and that damages or injury resulted. The County Attorney must, without charge, represent and defend in court, if necessary, any municipality or taxing area in any suit, claim, or demand made against it as a result of work provided under this Section.

(a) If goods are needed to perform a contract with the County, a non-profit organization that is exempt from taxation under Section 501(c)(3) of the United States Internal Revenue Code but which is not a public entity may: (1) subject to subsection (d), buy the goods under an existing County requirements contract; (2) engage in cooperative procurement for the goods with the County under Section 11B-40; or (3) buy the goods from the County if all items are in stock and not otherwise needed. (b) Any purchase under subsection (a) is subject to review and approval by the Chief Administrative Officer or designee. A reasonable service fee may be assessed by the County. (c) As part of the report required under Section 11B-32, the Director must provide information on use of this subsection by non-profit organizations in aggregate dollar amount, types of purchases made, significant purchasers under this subsection (as determined by the Director based on dollar amount), any identified additional cost or cost savings to the County, and any other relevant information. (d) For purposes of paragraph (a)(1), the authority to purchase goods under a County requirements contract executed before January 1, 1993, may be exercised only if the requirements contract or an amendment to it allows the qualifying non-profit organization to purchase the goods. For requirements contracts executed after January 1, 1993, a qualifying non-profit organization may purchase goods under the contract unless the requirements contract expressly provides otherwise.

(a) Notification to the County Attorney. When for any reason collusion is suspected among any bidders or offerors, a written notice of such suspicion must be transmitted by the Director to the County Attorney. (b) Retention of all documents. All documents involved in any procurement in which collusion is suspected must be retained until the County Attorney gives notice that they may be destroyed. All retained documents must be made available to the County Attorney or designee upon request.

(a) Gifts. A bidder, offeror, or contractor must not make or offer to make a gift to a public employee which the public employee is prohibited from accepting under Chapter 19A. (b) Kickbacks. (1) In this Chapter, a kickback means any money, fee, commission, credit, gift, or compensation of any kind which is provided directly or indirectly to a prime contractor, a prime contractor employee, a subcontractor, a subcontractor employee, a public employee, or other person for the purpose of obtaining or rewarding favorable treatment in the award of a prime contract or a subcontract in connection with a contract awarded by the County. (2) A person must not: (A) provide, attempt to provide, or offer to provide a kickback; (B) solicit, accept, or attempt to accept a kickback; (C) include, directly or indirectly, the amount of a kickback in the price charged by the subcontractor to the contractor, or by the prime contractor in the price charged by the prime contractor, to the County; or (D) claim that the unlawfully induced contract or subcontract fulfills any legal, regulatory, or contractual requirement. (3) The Director may offset the amount of a kickback from any sum owed to the prime contractor by the County.

(a) Unless authorized by law or the Ethics Commission under Chapter 19A, a person while engaged in a procurement matter with the County must not employ or offer to employ a public employee if the duties of the public employee include significant participation in the procurement matter. Public employee, employ, and significant participation, as used in this section, are defined in Chapter 19A. (b) A contractor providing an analysis or recommendation to the County concerning a particular matter must not, without first obtaining the written consent of the Chief Administrative Officer: (1) assist: (A) another party in the matter; or (B) another person if the person has a direct and substantial interest in the matter; or (2) seek or obtain an economic benefit from the matter in addition to payment to the contractor by the County. (c) A contractor must not use confidential information obtained in relation to performing a contract except as expressly authorized in the contract or by the Chief Administrative Officer. (d) If, the Chief Administrative Officer, after finding that the action would not impair the public interest, consents to any action under subsections (b) or (c), the Chief Administrative Officer must promptly notify the Ethics Commission.

(a) A person must not retain another to secure a contract from the County under an agreement that in exchange for the contract, the person will pay another a commission, percentage of the contract, or a contingent fee. (b) This Section does not apply to: (1) a bona fide employee or commercial selling agency retained by the person for the purpose of securing business; or (2) an attorney rendering professional legal services consistent with applicable canons of ethics.

(a) Any civil and administrative remedies for violations of ethical standards which are codified elsewhere in this Code are not impaired. (b) The value of anything received by any person for a violation of the ethical standards contained in this Article or in any regulations are recoverable from the person by the County by setoff, attachment, garnishment, or other appropriate legal action. (c) If a person makes a kickback in connection with the award of a contract, subcontract or order, the County is entitled to presume conclusively that the amount of the kickback was included in the price of the contract, subcontract, or order and ultimately borne by the County. The amount of the kickback may be recovered from the: (1) recipient; or (2) person making the kickback.

(a) Any criminal penalties for violations of ethical standards codified elsewhere in this Code are not impaired. (b) Any person who violates, or solicits the violation of, any of the provisions of this Article is subject to punishment for a class A violation. (c) Following a final criminal conviction of a public employee or appointed official for violation of a provision of this Article, the appointing authority must dismiss the convicted public employee or appointed official. Pending completion of any criminal proceedings, the appointing authority may suspend, with or without pay, the accused public employee or appointed official.

(a) Definitions. In this Section, unless the context indicates otherwise, the following terms have the following meanings: (1) Paper includes paper board, bleached or unbleached paper, bond paper, computer paper, cotton fiber content paper, ledger and tabulating paper, offset printing or mimeo paper, office paper, printing paper, newsprint, stationery, writing paper, and xerographic or copy paper. (2) Paper product means any item manufactured from paper or paperboard. It includes corrugated and fiberboard boxes, folding boxboard, envelopes, facial or toilet tissue, paper towels, and paper napkins. (3) Percentage price preference means the percent by which a responsive bid from a responsible bidder whose product contains recycled materials (or a greater use of recycled materials) may exceed the lowest responsive bid submitted by a responsible bidder whose product does not contain recycled materials (or a lesser use of recycled materials). (4) Post-consumer waste means an item that has passed through its end-usage as a consumer item such as old newspapers, magazines, used corrugated containers, and office waste material. It does not include waste generated during production of an end product such as printer's waste. (5) Recycled material means material recovered from or otherwise diverted from the waste stream, including recycled paper. It includes post-consumer waste, industrial scrap material, and obsolete inventories. It does not include mill broke or similar paper waste generated in a paper mill before completion of the paper making process or, in other industries, those materials and by-products generated in and commonly reused within an original manufacturing process. (6) Recycled paper means: (A) paper or a paper product that contains recycled materials with a total gross content of post-consumer waste of at least 80%; (B) if a paper or paper product meeting the requirements of subparagraph (A) is unavailable or otherwise impracticable to procure, the paper or paper product has been de-inked or contains a level of post-consumer waste that exceeds the then current minimum content standards of the U.S. Environmental Protection Agency for paper and paper products containing recovered materials (40 CFR 250); or (C) if a paper or paper product meeting the requirements of subparagraphs (A) or (B) is unavailable or otherwise impracticable to procure, the paper or paper product conforms to the then current minimum content standards adopted by the U.S. Environmental Protection Agency for paper and paper products containing recovered materials (40 CFR 250). (b) Procurement specification review; use of recycled materials. (1) Notwithstanding any other provision of this Chapter, each Using Department must review the procurement specifications used or to be used by the department and, to the extent practicable: (A) require use of goods containing recycled materials; (B) provide for use of a percentage price preference not to exceed 10%; (C) or both. If the Using Department is unable to determine whether or not a desired good containing recycled materials is available, the procurement specifications should include a provision that a specified percentage price preference, not to exceed 10%, will be given to a bidder offering an acceptable requested good containing recycled materials consistent with this Section. (2) In an assessment of the practicability of a procurement specification for goods containing recycled materials the Using Department must consider, among other relevant factors: (A) product availability; (B) product suitability for intended County use, including whether the product meets established performance standards; and (C) cost. A procurement specification for a good containing recycled materials may be considered impracticable if the estimated cost of the good containing recycled materials exceeds the average cost of similar products that have not been recycled by more than 10 percent. (3) If the Using Department makes a determination that a specification for a good containing recycled materials is not practicable, written documentation must be placed in the contract file. The documentation must explain the agency determination and reference any specific tests used to evaluate performance. (4) A decision on use of a specification for a good containing recycled materials or a percentage price preference is within the sole discretion of the County and is not appealable under Article VII. (c) Recycled Paper Goal. Procurement of paper and paper products should be structured to attempt to achieve the goal that at least 50% of the total dollar value of paper and paper products purchased by or for County government is recycled paper. To the extent possible, any cooperative purchasing agreement with the Montgomery County Schools or other entity should be similarly structured. (d) Role of Office of Procurement and Department of Environmental Protection; Executive Regulations; Indirect Purchases. (1) The Office of Procurement must review all specifications of the Using Departments and all cooperative purchasing agreements to ensure compliance with this Section, appropriate use of percentage price preferences, and consistency among Using Departments procuring similar goods. To the extent available, the Office of Procurement must provide the Using Departments with lists of acceptable products containing recycled materials published by the State of Maryland for use by state agencies or any similar information developed by the County. (2) The Department of Environmental Protection must provide technical assistance, when requested by the Office of Procurement or a Using Department, concerning recycled material content in any product, or similar matters. (3) In adopting any regulations to administer this Section, the County Executive may, to the extent consistent with this Section, incorporate guidelines of the U.S. Environmental Protection Agency concerning the use of products containing materials recovered from solid waste, including cement and concrete containing fly ash, paper and paper products, asphalt materials, oils and hydraulic fluids, and retread tires. (4) Regulations or contract specifications may be adopted that provide minimum recycled content requirements. In addition, provision should be made for estimates by vendors, certification, and verification of the amount of recycled content in goods supplied to the County under this Section. (5) The County may require use of recycled materials for purchases by contractors or grantees using appropriated County funds. (e) Report by Office of Procurement. The Director, in consultation with the Director of Environmental Protection, must submit a report to the County Council and County Executive by September 30 each year about implementation of this Section for the prior fiscal year. The report must describe County government efforts to encourage the maximum purchase of goods containing recycled materials under this Section and recommend measures that could increase County purchases of goods containing recycled materials. The report should specifically provide: (1) the dollar value of recycled paper purchased and the dollar value of all other paper and paper products purchased; (2) to the extent ascertainable, the quantity and dollar value of recycled paper purchased with: (A) at least 80% post-consumer waste content; and (B) other post-consumer waste or waste paper characteristics determined relevant by the County Executive; (3) a summary of major specification revisions made during the year by the Using Departments and in any cooperative purchasing arrangement; (4) the dollar value of goods procured under this Section containing recycled materials, other than recycled paper; (5) a summary of determinations that compliance with this Section is impracticable; (6) a review of the variation, if any, between estimates and certifications concerning the recycled content in goods supplied to the County under this Section; (7) the cost to the County of implementing this Section; (8) suggested legislative or administrative changes; and (9) any other relevant information.

(a) Minority owned businesses have experienced the effects of discrimination in the awarding of County contracts and subcontracts. The effect has been to: (1) make a smaller percentage of contract and subcontract awards to minority owned businesses than the percentage of qualified minority owned businesses in the County’s relevant geographic market area would indicate as reasonable; (2) impede the economic development and expansion of minority owned businesses in the County’s relevant geographic market area; (3) impair the competitive position of minority owned businesses; and (4) generally harm minority owned businesses. (b) Adoption of the minority owned business purchasing program is intended to remedy the effects of discrimination on minority owned businesses. (c) A goal of awarding an appropriate percentage of the dollar value of County contracts to minority owned businesses in proportion to their availability to perform work under County contracts is a reasonable and appropriate means to remedy discrimination against minority owned businesses. (d) The County should actively recruit all minority owned businesses to provide goods, construction, and services to the County. To help achieve this goal, the County should: (1) notify all businesses of procurement opportunities; (2) provide information to all business owners about the procurement system; (3) provide referrals for technical assistance, sureties, and financing; and (4) review procurement procedures to remove artificial barriers to competition. (e) A five-year period is a reasonable time to continue the minority owned business purchasing program before evaluating it. (f) This article does not give any person, including a minority owned business, any right or status, including standing, to challenge the award of a contract or subcontract under the County procurement system. The provisions of this article are enforceable only through the oversight function of the Chief Administrative Officer and the County Council. "Transition. Any certification as a minority owned business remains valid until April 1, 1998, if: (a) the County certified the entity as a minority owned business before this Act took effect [December 10, 1997]; and (b) the entity continues through March 31, 1998, to meet the criteria for a minority owned business in effect before this Act took effect [December 10, 1997]. The goal of awarding 20 percent of the total dollar value of County contracts to minority owned businesses remains in effect until the Chief Administrative Officer sets new goals under regulations adopted to implement this Act. This Act does not affect the validity of any minority, female, disabled subcontractor performance plan entered into before this Act took effect [December 10, 1997].”

(a) Minority owned business means, unless the context indicates otherwise, any legal entity that: (1) Is a minority business enterprise as defined under the State procurement law; and (2) Does not exceed a ceiling set by regulation on the number and value of contracts or subcontracts awarded during the first 5 years after it is certified under this article, or during the next 3 years if it did not exceed the ceiling during the first 5 years after it is certified. However, a not for profit entity organized to promote the interests of persons with a disability is a minority owned business only if at least 51 percent of the individuals used by the nonprofit entity to perform the services or manufacture the goods contracted for by the County are persons with a disability. (b) Relevant geographic market area means the geographic market area identified by the County Executive in the most recent report that evaluates the need to continue the program and is issued in accordance with Section 11B-61(b). (c) Socially or economically disadvantaged group means a group expressly identified as eligible to control a minority business enterprise under the State procurement law. For purposes of this Article, disabled owned businesses and not-for-profit entities organized to promote the interests of persons with a disability are a single group. "Transition. Any certification as a minority owned business remains valid until April 1, 1998, if: (a) the County certified the entity as a minority owned business before this Act took effect [December 10, 1997]; and (b) the entity continues through March 31, 1998, to meet the criteria for a minority owned business in effect before this Act took effect [December 10, 1997]. The goal of awarding 20 percent of the total dollar value of County contracts to minority owned businesses remains in effect until the Chief Administrative Officer sets new goals under regulations adopted to implement this Act. This Act does not affect the validity of any minority, female, disabled subcontractor performance plan entered into before this Act took effect [December 10, 1997]."

(a) The Chief Administrative Officer must structure the County's purchasing program to attempt to achieve the goal so that the percentages of the dollar value of purchases identified in subsection (b) from minority owned businesses who have been discriminated against are proportional to the availability of those businesses to perform work under County contracts in the County’s relevant geographic market area as determined by the most recent report that the County Executive must submit to the County Council under Section 11B-6(b). (b) The purchases subject to the minority owned business goals are any formal or informal procurement, including any contract modification or renewal, valued over $5,000. (c) The minority owned business goals do not apply to: (1) grants that are appropriated by the County Council to specific grantees; (2) utilities; (3) intragovernmental procurements; or (4) intergovernmental procurements, including a bridge contract, under Sections 11B-41 and 11B-42 if the Director determines in writing that compliance with this Article is impractical or is outweighed by the benefits to the County of entering into the intergovernmental procurement. "Transition. Any certification as a minority owned business remains valid until April 1, 1998, if: (a) the County certified the entity as a minority owned business before this Act took effect [December 10, 1997]; and (b) the entity continues through March 31, 1998, to meet the criteria for a minority owned business in effect before this Act took effect [December 10, 1997]. The goal of awarding 20 percent of the total dollar value of County contracts to minority owned businesses remains in effect until the Chief Administrative Officer sets new goals under regulations adopted to implement this Act. This Act does not affect the validity of any minority, female, disabled subcontractor performance plan entered into before this Act took effect [December 10, 1997]."

(a) By September 30 of each year, the Chief Administrative Officer must set for the following calendar year percentage goals of the dollar value of purchases subject to this Article for each socially or economically disadvantaged group. The goals must correspond to the availability of that group by source selection method and purchasing category in the relevant geographic market area as determined by the most recent report that the County Executive must submit to the County Council under Section 11B-61(b) to perform work under County contracts. The Chief Administrative Officer must set separate goals for each socially or economically disadvantaged group in the County’s purchases of goods, construction, professional services, and other services. The Chief Administrative Officer must not set goals for a socially or economically disadvantaged group unless the Chief Administrative Officer determines that the value of purchases made during the previous fiscal year from that group in each category of purchases under a particular source selection method, compared with the availability of that group to perform work in that category, shows a significant under-utilization of the group. (b) The Chief Administrative Officer must adopt procedures to certify and decertify minority owned businesses. (c) The Office of Procurement must publicly notify businesses of prospective procurement opportunities. (d) For those procurements where a goal has been set under subsection (a), the Office of Procurement must encourage minority owned business participation in procurement. These activities should include: (1) distribution to potential contractors for whom a goal has not been set of a list of potential minority owned business contractors for whom a goal has been set with a requirement that one or more be contacted if any work subject to a goal is being subcontracted; (2) a provision in all solicitations for procurements in excess of $50,000 that requires, subject to the waiver provisions of subsection (h), businesses for whom a goal has not been set acting as prime contractors to subcontract to minority owned businesses for whom a goal has been set a percentage of the total dollar value of the contract that is consistent with the numerical goals established under subsection (a); (3) a requirement that a contractor for whom a goal has not been set: (A) agree to a plan showing how the contractor proposes to meet its minority owned business procurement subcontracting goal; and (B) identify, before a notice to proceed is issued or performance of a contract begins, whichever occurs first, each minority owned business that the contractor intends to subcontract with and the projected dollar amount of each subcontract, and promptly notify the using department of any change in either item; (4) contract requirements that minority owned business participation goals be maintained by prime contractors throughout the life of the contract, including modifications and renewals, subject to the waiver provisions of subsection (h). Contract requirements: (A) may include obligating contractors subject to the minority owned business procurement goals to provide in each subcontract with a minority owned business a provision requiring the use of binding arbitration to resolve disputes between the contractor and the minority owned business subcontractor; and (B) must make failure to submit documentation showing compliance with a minority owned business subcontracting plan under paragraph (3) grounds for withholding any remaining payment or imposing liquidated damages unless failure to comply with the plan is the result of an arbitration decision under subparagraph (A) or a waiver granted under subsection (h). Liquidated damages under this provision must equal the difference between all amounts the contract or has agreed under its plan to pay minority owned business subcontractors and all amounts actually paid minority owned business subcontractors under the contract, considering any relevant waiver or arbitrator's decision. Failure to show compliance with a minority owned business subcontracting plan must also result in finding the contract or non-responsible for purposes of future procurements with the County during the next 3 years; and (5) an evaluation factor with a value of no more than 10% of the total available points in a request for proposals issued under Section 11B-10 awarding additional points for a proposal from: (A) a contractor for whom a goal has been set under subsection (a); and (B) a contractor for whom a goal has not been set who proposes to exceed the minority owned business procurement subcontracting goal established for the contract. (e) The Office of Procurement must offer procurement system education and information to minority owned businesses for whom a goal has been set under subsection (a). (f) The Office of Procurement must offer referrals to resources such as technical consultants, sureties, and financing sources. (g) The Director must review procurement requirements to remove artificial barriers to competition. (h) The Director may waive, or exempt a business from, minority owned business contracting requirements under appropriate circumstances described in regulations. (i) The Director may require each contractor and minority owned business that participates in the minority owned business purchasing program to provide information concerning utilization by the contractor of minority owned businesses in private and government contracts. (j) The Chief Administrative Officer must ensure that all contract administrators receive appropriate guidance in implementing this article. "Transition. Any certification as a minority owned business remains valid until April 1, 1998, if: (a) the County certified the entity as a minority owned business before this Act took effect [December 10, 1997]; and (b) the entity continues through March 31, 1998, to meet the criteria for a minority owned business in effect before this Act took effect [December 10, 1997]. The goal of awarding 20 percent of the total dollar value of County contracts to minority owned businesses remains in effect until the Chief Administrative Officer sets new goals under regulations adopted to implement this Act. This Act does not affect the validity of any minority, female, disabled subcontractor performance plan entered into before this Act took effect [December 10, 1997]."

(a) The Chief Administrative Officer must report to the County Council, by September 30 of each year for the previous fiscal year: (1) the total number and value of all procurements; (2) the total number and value of all procurements subject to the minority owned business procurement goal; (3) the total number and value of purchases from minority owned businesses; (4) the total number and value of purchases of construction, goods, professional services, and other services from each socially or economically disadvantaged group; (5) the percentage which those purchases are of the total number and value of purchases subject to the minority owned business procurement goal; (6) the percentage of availability that each socially or economically disadvantaged group represents in each category of purchases in the County’s relevant geographic market area; (7) the percentage of each socially or economically disadvantaged group that submits a proposal in response to each request for proposals, and the percentage of contracts by dollar volume and number of awards made under each request for proposals to each socially or economically disadvantaged group; (8) information required in paragraphs (1) through (4) for each Using Department that, for procurements subject to the minority owned business procurement goal, has had either; (A) procurements of any type exceeding $5,000,000, in the aggregate; or (B) procurements for professional services exceeding $1,000,000, in the aggregate; (9) the total number and value of all procurements excluded from the minority owned business goals by Section 11B-59(c); (10) the total number and value of all waivers or exemptions granted under section 11-60(h), with a brief description of the reasons for each waiver or exemption; (11) any other information that the County Council requests; and (12) any other information that a regulation requires to be submitted. (b) By July 1, 2029, the Director of the Office of Procurement must submit a report to the County Council evaluating the need to extend the minority owned business purchasing program. "Transition. Any certification as a minority owned business remains valid until April 1, 1998, if: (a) the County certified the entity as a minority owned business before this Act took effect [December 10, 1997]; and (b) the entity continues through March 31, 1998, to meet the criteria for a minority owned business in effect before this Act took effect [December 10, 1997]. The goal of awarding 20 percent of the total dollar value of County contracts to minority owned businesses remains in effect until the Chief Administrative Officer sets new goals under regulations adopted to implement this Act. This Act does not affect the validity of any minority, female, disabled subcontractor performance plan entered into before this Act took effect [December 10, 1997]."

The Chief Administrative Officer must develop monitoring procedures that will enable a contract administrator and the minority procurement officer of the Office of Procurement to ascertain compliance by prime contractors with the minority participation requirements of this article. Monitoring requirements may include the submission of copies of invoices from the minority subcontractor to the prime contractor relative to County contracts. "Transition. Any certification as a minority owned business remains valid until April 1, 1998, if: (a) the County certified the entity as a minority owned business before this Act took effect [December 10, 1997]; and (b) the entity continues through March 31, 1998, to meet the criteria for a minority owned business in effect before this Act took effect [December 10, 1997]. The goal of awarding 20 percent of the total dollar value of County contracts to minority owned businesses remains in effect until the Chief Administrative Officer sets new goals under regulations adopted to implement this Act. This Act does not affect the validity of any minority, female, disabled subcontractor performance plan entered into before this Act took effect [December 10, 1997]."

(a) A person must not: (1) fraudulently obtain or retain, attempt to obtain or retain, or aid another person in fraudulently obtaining or retaining or attempting to obtain or retain certification as a minority owned business for the purpose of this article; (2) willfully make a false statement to a County official or employee for the purpose of influencing the certification or denial of certification of an entity as a minority owned business; (3) fraudulently obtain, attempt to obtain, or aid another person in fraudulently obtaining or attempting to obtain public monies to which the person is not entitled under this article; or (4) willfully make false statements that any entity is or is not certified as a minority owned business for purposes of this article. (b) A violation of this Section: (1) is a class A violation; and (2) disqualifies the violator from doing business with the County for 3 years. "Transition. Any certification as a minority owned business remains valid until April 1, 1998, if: (a) the County certified the entity as a minority owned business before this Act took effect [December 10, 1997]; and (b) the entity continues through March 31, 1998, to meet the criteria for a minority owned business in effect before this Act took effect [December 10, 1997]. The goal of awarding 20 percent of the total dollar value of County contracts to minority owned businesses remains in effect until the Chief Administrative Officer sets new goals under regulations adopted to implement this Act. This Act does not affect the validity of any minority, female, disabled subcontractor performance plan entered into before this Act took effect [December 10, 1997]."

This Article is not effective after December 31, 2029. "Transition. Any certification as a minority owned business remains valid until April 1, 1998, if: (a) the County certified the entity as a minority owned business before this Act took effect [December 10, 1997]; and (b) the entity continues through March 31, 1998, to meet the criteria for a minority owned business in effect before this Act took effect [December 10, 1997]. The goal of awarding 20 percent of the total dollar value of County contracts to minority owned businesses remains in effect until the Chief Administrative Officer sets new goals under regulations adopted to implement this Act. This Act does not affect the validity of any minority, female, disabled subcontractor performance plan entered into before this Act took effect [December 10, 1997]."

In this Article the following words have the meanings indicated. Director is the Director of Procurement. Direct purchase means an informal solicitation defined by regulation under Section 11B-13. Local Small Business means a for-profit business or non-profit entity, other than a broker, that: (1) has its principal place of business or non-profit operations in the County; (2) in the case of a for-profit business, is independently owned and operated; (3) is not a subsidiary of another business or entity; and (4) meets criteria, size limits, and gross sales amounts established by method 2 regulations. Local Small Business Reserve means any procurement that is limited to responses from local small businesses. Veteran-Owned Local Small Business means a Local Small Business that is at least 51 percent owned by one or more individuals who: (a) are verified as having served on active duty in the armed forces of the United States, other than for training and were discharged or released under conditions other than dishonorable; and (b) control the management and daily operations of the business.

(a) Except as provided in Subsection (c), this Article applies to all procurements by a using department. (b) Minimum Requirements. (1) Subject to Method 2 regulations, a using department’s procurement procedures must award a minimum of 25 percent of the using department’s combined dollar value of contracts issued for goods, services, or construction, including direct purchases, to local small businesses. (2) A using department must have a goal to award at least 50 percent of the combined dollar value of its direct purchases to local small businesses. (c) The total dollar value of procurements by a using department does not include: (1) the value of any contract to which this Article does not apply because of a conflict with state or federal law or a grant requirement; (2) a preexisting contract executed by the County; (3) a non-competitive contract award made under Section 11B-14; (4) a public entity procurement; (5) an emergency procurement; (6) a bridge contract; (7) a cooperative procurement; (8) any waiver made under Section 11B-67(f); (9) any procurement where no local small business is qualified or able to perform the contract; or (10) any single procurement that is estimated to exceed $10 million. (d) A using department’s decision to exclude a procurement under Subsection (c)(6) must be approved by the Director.

(a) Established. There is established a Veteran-Owned Local Small Business preference points program for County procurements. (b) Eligibility. To be eligible for Veteran-Owned Local Small Business preference points, a business must affirm and provide supporting documentation to the Director to show that it is a Veteran-Owned Local Small Business as defined in Section 11B-65. The Director may investigate and verify the information provided on the application, as necessary. (c) Certification. Veteran-Owned Local Small Business preference points must only be applied to a Local Small Business that has a valid Veteran-Owned Small Business (VOSB) or Service-Disabled Veteran-Owned Small Businesses (SDVOSB) certificate from the U.S. Small Business Administration or the U.S. Department of Veterans Affairs’ Center for Verification and Evaluation. (d) Application of Preference Points to competitive sealed proposals. For any request for proposals issued under Section 11B-10 that has been designated for a Local Small Business Reserve, the Director must include an evaluation factor awarding additional points for a proposal from a Veteran-Owned Local Small Business worth five percent of the total available points. (e) Waiver. The Director may waive a bid or proposal preference under this Section in a solicitation if the Director finds that a preference would result in the loss to the County of Federal or State funds.

(a) Any procurement by a using department of goods, services, or construction is eligible for designation for the local small business reserve by the using department director or a designee, except any procurement that would be excluded under Section 11B-66(c). (b) A solicitation for a procurement that has been designated for a local small business reserve must be published in the same manner as required for other solicitations under Article III. (c) The procurement officer of a designated procurement unit must award a procurement contract designated for a local small business reserve to the responsible local small business that submits an offer that: (1) is the lowest bid price; (2) if the invitation for bids so provides, is the lowest evaluated bid price; or (3) is the bid or proposal most favorable to the County within the local small business reserve. (d) A business must affirm and provide supporting documentation to the Director to show that it is a local small business as defined in Section 11B-65(a). The Director may investigate and verify the information provided on the application. (e) A local small business is no longer eligible for a procurement under this Article if the business has been awarded $10 million in the aggregate in County contracts and at least 10 separate contracts, as either a prime contractor or a subcontractor, beginning January 1, 2006. The Director must provide written notice to the business when it is no longer eligible. (f) The Chief Administrative Officer may waive the application of this Article to a specific contract if the Chief Administrative Officer finds that the application of this Article conflicts with the overall objectives and responsibilities of the Chapter. The Chief Administrative Officer must keep records on the number of waivers issued and the reason for each waiver. This information must be reported to the Council in the annual report on the Program under Section 11B-69(b). (g) This Article does not give any person, including a local small business, any right or status, including standing, to challenge the award of a contract or subcontract under the County procurement system. This Article is enforceable only through the oversight function of the Chief Administrative Officer and the Council.

(a) The County Executive must adopt method 2 regulations to implement this Article. The regulations must: (1) require the Director to compile and maintain a comprehensive bidder’s list of qualified local small businesses and post that list on the appropriate website; (2) specify the criteria, size requirements, and gross sales amounts for a local small business; (3) define what constitutes a significant amount of economic activity; and (4) identify outreach methods and marketing strategies to inform local small businesses of the program. (b) Each using department must comply with the regulations.

(a) By October 30 each year, each using department must submit to the Director a report on the number, type, and dollar amount of contracts, including direct purchases, issued under this Article. (b) By November 30 each year, the Director must report to the Council on the Local Small Business Reserve Program. This report must include the number, type, and dollar amount of contracts, including direct purchases, awarded under this Article during the preceding fiscal year, the number, type, and dollar amount of each waiver, information about how these numbers have changed from the preceding fiscal year, and the extent of outreach efforts.

(a) A person must not: (1) willfully make a false statement to a County official or employee for the purpose of influencing participation in the Program; or (2) fraudulently obtain, attempt to obtain, or aid another person in fraudulently obtaining or attempting to obtain funds to which the person is not entitled to under this article. (b) A violation of this Section: (1) is a class A violation; and (2) disqualifies the violator from doing business with the County for 2 years.

In this Article, the following words have the meanings indicated. (a) Adversely affect means: (1) loss of County employment; (2) reduction in pay or benefits; (3) reduction in pay grade; or (4) loss of bargaining unit work. (b) Public employee means: (1) a County merit system employee who is a member of the Office, Professional, and Technical (OPT) or Service, Labor, and Trades (SLT) bargaining unit; or (2) a temporary, seasonal, or substitute employee who is a limited scope member of the OPT or SLT bargaining unit under Section 33-105(c)(2).

(a) This Article applies to a service contract that the Director finds will, if awarded: (1) exceed an estimated annualized cost of $75,000; and (2) adversely affect a public employee, as defined in Section 11B-71(b), by reducing or eliminating work already performed by County employees when the contract is solicited. The Director must adjust the amount in paragraph (1) every 2 years to reflect the aggregate increase, if any, in the Consumer Price Index for All Urban Consumers (CPI-U) for the Washington-Arlington-Alexandria Core Based Statistical Area (CBSA) as published by the United States Department of Labor, Bureau of Labor Statistics, or any successor index, for the previous 2 years. The Director must calculate the adjustment to the nearest multiple of $100. (b) This Article does not apply to: (1) a contract that is primarily to obtain goods or construction, but includes services related to the procurement of the goods or construction; (2) a contract that the Director finds is necessary to meet an imminent threat to public health, welfare, or safety; (3) a contract for services provided by a public entity; (4) a contract for services provided by a local small business under the Local Small Business Reserve Program; or (5) a non-competitive contract awarded by the Chief Administrative Officer under Section 11B-14(a)(4). (c) This Article does not apply to or limit the authority of a Department or Office Director to abolish a bargaining unit position or conduct a reduction-in-force. (d) This Article does not apply to or limit any contract for: (1) any service that the County Council authorizes or requires to be provided by an independent contractor; (2) any service by a consultant; or (3) any professional service, unless that service is provided by bargaining unit employees when the contract is solicited.

The Director must not issue a solicitation for a service contract under this Article unless the Chief Administrative Officer has certified that the contract complies with Section 11B-74.

(a) The Chief Administrative Officer may certify that the Director may solicit a service contract under this Article if the using department has: (1) taken steps to consider alternatives to the service contract, including reorganization, reevaluation of service, and reevaluation of performance; (2) consulted with the certified representative of public employees who will be adversely affected if the County enters into the service contract; and (3) demonstrated, based on a cost comparison analysis, that the County will save, over the term of the contract, at least 25 percent of the value of the contract. (b) The using department must compare at least the following items in its cost analysis: (1) direct costs, including fringe benefits, and an assumption that the contractor will meet the wage requirements of Section 11B-33A for the employees who perform work under the contract; (2) indirect overhead costs, including a proportional share of administrative salaries and benefits, rent, equipment costs, utilities, and materials; and (3) any continuing or transitional costs directly related to contracting for the service, including unemployment compensation and the cost of transitional services. (c) (1) The using department must develop a plan of assistance for each public employee who will be adversely affected by the service contract. The plan of assistance must include: (A) efforts to place each adversely affected public employee in a vacant County position; (B) inclusion in the service contract, if feasible, of a requirement that the contractor must: (i) notify the County of any vacant position for which displaced County employees may apply; and (ii) consider hiring displaced public employees; and (C) written notice of the anticipated adverse effect to each adversely affected public employee and the certified bargaining representative 120 days before the anticipated adverse effect will occur. (2) The using department must bargain with the certified representative before adopting a final plan of assistance.

(a) Noncompliance with this Article does not invalidate a contract award or proposed contract award that the County has otherwise validly awarded or issued. (b) A public employee who is adversely affected by noncompliance with this Article may file an action in the Circuit Court for the County or the District Court of Maryland, depending on the amount in controversy. If the Court enters a judgment in favor of the employee, the County must reimburse the employee for any actual loss the employee incurred.

The certified representative of an adversely affected employee may submit an offer in response to a solicitation, under applicable procurement regulations, to have bargaining unit employees perform the services while achieving the targeted savings.

(a) Definitions. In this Article the following terms have the following meanings: Certified Small Business With Health Insurance means a business certified by the Director as meeting the standards established by regulation for a Small Business With Health Insurance. Contract means a contract for procurement services subject to the Wage Requirements Law in Section 11B-33A. Director means the Director of the Department of Health and Human Services or the Director’s designee. Health insurance means insurance coverage that pays for medical expenses incurred by an employee and an employee’s family either by reimbursing the employee or by paying the care provider directly and provides the minimum essential health benefits required under the Patient Protection and Affordable Care Act, 26 U.S.C. §5000A, as amended. Health insurance evaluation factor means an evaluation factor in a request for proposals that gives an offeror credit for being a certified Business With Health Insurance. Percentage price preference means the percent by which a responsive bid from a responsible bidder who is a certified Business With Health Insurance may exceed the lowest responsive bid submitted by a responsible bidder who is not a certified Business With Health Insurance. Small Business With Health Insurance means a business that: (1) has 50 or fewer full-time equivalent employees; and (2) provides an employer benefit package that includes health insurance for each employee who provides services to the County under a contract; or (3) demonstrates that each employee who provides services to the County has health insurance from another source. (b) Regulation. The County Executive must adopt a regulation under Method 2 that establishes: (1) an application process for a business to be certified as a Small Business With Health Insurance; (2) standards for a business to meet to be certified as a Small Business With Health Insurance; (3) the amount of a percentage price preference for a Small Business With Health Insurance under a solicitation for competitive sealed bidding; and (4) a Small Business With Health Insurance evaluation factor for use in a request for proposals. (c) Certification. The Director must certify a business that meets the standards established by regulation as a Small Business With Health Insurance. A false statement on an application for certification is a Class A violation. (d) Role of Office of Procurement and Department of Health and Human Services. (1) The Office of Procurement must review all specifications of each using department to assure compliance with this Section, appropriate use of a percentage price preference or an evaluation factor, and consistency among using departments procuring similar services. (2) The Department of Health and Human Services must: (A) operate the certification process; (B) permit pre-certification as a Small Business With Health Insurance; and (C) maintain a list of businesses that have been certified as a Small Business With Health Insurance. (e) Denial or revocation of certification. The Director may refuse to certify a business under this Section, and may suspend or revoke a certification issued under this Section, after a hearing for which reasonable notice has been given, if the business or applicant does not meet the standards for certification as a Small Business With Health Insurance. (f) Notice and opportunity for hearing. (1) Notice. After finding that one or more grounds for denial, suspension, or revocation of a certification could exist, the Director may serve a written notice on the business or applicant in person or by regular mail, postage prepaid, addressed to the person’s last known address as maintained in the Director’s file. Service on that person by mail is effective 3 days after mailing. The written notice must, at a minimum: (A) state that the Director has found that the business or applicant may be subject to denial, suspension, or revocation of the certification; (B) identity the specific grounds for the Director’s findings; and (C) set a date for a hearing on denial of the application or suspension or revocation of the certification. (2) Hearing. The Director or a designee may conduct the hearing. At the hearing, the business or applicant may present evidence and witnesses to refute the grounds cited by the Director for denying the application or suspending or revoking the certification, and the County and any other person may submit relevant evidence. The relevant records of the Office are part of the hearing record. The person conducting the hearing must render a decision in writing, giving the reasons for the decision. That decision is final, subject to judicial review under the Maryland Rules for review of administrative decisions in the Circuit Court and the Court of Special Appeals. (3) Failure to appear. A business or applicant who after notice does not appear at a hearing waives the right to a hearing and consents to the action that the Director proposed in the notice. The Director may deny the application or suspend or revoke the certification as proposed in the notice. (g) Appeals. Any person aggrieved by the denial, suspension, or revocation of any certification under this Section may seek judicial review under the Maryland Rules for review of administrative decisions in the Circuit Court and the Court of Special Appeals. (h) Report by Office of Procurement. The Director of the Office of Procurement, after consulting with the Director of Health and Human Services, must submit a report to the County Council and County Executive by September 30 each year after implementation of this Section for the prior fiscal year. The report should include: (1) the dollar value of services purchased from a certified Small Business With Health Insurance; (2) the dollar value of services purchased from a business that is not a certified Small Business With Health Insurance; (3) to the extent ascertainable, the additional cost of any contracts awarded to a certified Small Business With Health Insurance under a percentage price preference; (4) a summary of applications for certification as a Small Business With Health Insurance made during the year, including the results of each application; (5) a list of certified Small Businesses With Health Insurance; (6) suggested legislative or administrative changes; and (7) any other relevant information.

In this Section, the following words have the meanings indicated: Broker means a person that provides goods or services (other than real estate, investment, or insurance sales) on a pass-through basis as follows: (1) a supplier of goods who: (A) does not own, operate, or maintain a place of business in which goods of the general character required under the contract are kept in stock in the regular course of business; (B) does not regularly assume physical custody or possession of goods of comparable character to those offered to the County, or (C) exclusively acts as a middleman in the sale of goods to the County; or (2) a supplier of services who does not regularly maintain the capability, capacity, training, experience, and applicable regulatory licensing to directly perform the principal tasks of a contract with the County and must provide the principal tasks through a subcontract with a third party. Contract Award means the delivery by the County of a fully executed contract to an offeror. High Dollar Value Contract means an initial Contract Award that is estimated to exceed $10 million. Local Business means a for-profit business other than a broker that has its principal place of business in the County, as further defined by Executive Regulation, and that is certified by the Director as a Local Business under the provisions of this Article. Local Business Program Manager means a person designated by the Director to administer and monitor the Local Business Subcontracting Program. Local Business Subcontractor means a Local Business that enters into a contract with a Contractor to perform work related to a High Dollar Value Contract for that Contractor.

(a) Local Business Subcontracting Goals. This subsection establishes the following Local Small Business subcontracting goals: (1) at least 10% of the contract dollars awarded for each High Dollar Value Contract should be awarded to a Local Business; and (2) at least 10% of the total dollar value of all High Dollar Value Contracts in the aggregate should be awarded to Local Businesses. (b) Applicability. The Local Business Subcontracting Program goals apply to each High Dollar Value Contract except: (1) grants or appropriations under Section 11B-14 (a)(3) and (4); (2) cooperative procurements under Section 11B-40; (3) public entity contracts under Section 11B-41: (4) emergency procurements under Section 11B-16; or (5) bridge contracts, under Section 11B-42, if the Director determines in writing that compliance with this Article is impractical or is outweighed by the benefits to the County of entering into a bridge contract.

(a) The Director, at the time of a solicitation, must publish notification to businesses when the solicitation may result in a High Dollar Value Contract. (b) The Director must encourage Local Business participation in applicable High Dollar Value Contract opportunities by: (1) adding a provision in a solicitation for a High Dollar Value Contract that requires a Contractor to exercise good faith in its effort to subcontract 10% of the dollar value of the contract to one or more Local Businesses; (2) requiring a Contractor on a High Dollar Value Contract to: (A) submit a Local Business subcontracting plan describing how the Contractor proposes to meet the 10% Local Business Subcontracting Program goal; (B) identify, before initial Contract Award, each Local Business with which the Contractor intends to subcontract and the projected dollar amount of each subcontract or percentage of the contract dollar amount allocated to each subcontract; and (C) promptly notify the Using Department of any change in the information required under (A) and (B) of this subsection during the contract term. (3) requiring the Contractor to comply with Local Business Subcontracting Program goals throughout the contract term. (c) A Contractor’s failure to satisfy the requirements of the Local Business Subcontracting Program, including a failure to submit documentation required by the Director to show compliance, may constitute a breach of the contract for which the County may withhold payment or impose liquidated damages, in addition to any other remedies available to the County. (d) The Director may waive all or part of the Local Business subcontracting requirements for a specific contract under appropriate circumstances as established by Executive Regulation. (e) The Director may require each Contractor and Local Business that participates in the Local Business Subcontracting Program to provide information concerning utilization by the Contractor of Local Businesses in a High Dollar Value Contract.

The County Executive must adopt a regulation, by Method 2, to implement this Article. The regulation must include: (a) monitoring procedures to assist a contract administrator and the Local Business Program Manager to determine compliance by a Contractor with the Local Business Subcontracting Program; (b) certification requirements for a business to qualify as a Local Business under this Article; and (c) procedures to certify or decertify a Local Business.

This Article does not give any person, including a Local Business, any right or status, including standing, to challenge the award of a contract or subcontract arising from the County procurement system. The provisions of this Article are enforceable only through the oversight function of the Chief Administrative Officer or his designee.

(a) A person must not: (1) fraudulently obtain or retain, attempt to obtain or retain, or aid another person in fraudulently obtaining or retaining, or attempting to obtain or retain, certification as a Local Business for the purpose of this Article; (2) willfully make a false statement to a County official or employee for the purpose of influencing the certification of an entity as a Local Business; or (3) fraudulently obtain, attempt to obtain, or aid another person in fraudulently obtaining, or attempting to obtain, public monies to which the person is not entitled under this Article. (b) A violation of this Article: (1) is a class A violation; and (2) may disqualify the violator from doing business with the County for up to 2 years.

As used in this Article, the following terms have the meanings indicated: Packaged means bottled, canned, securely bagged, or securely wrapped, whether packaged in a food establishment or a food processing plant. Vending machine means a self-service machine offered for public use that, upon insertion of a coin, paper, currency, token, card, or key, or by optional manual operation, dispenses servings of food or beverages in bulk or in packages, or prepared by the machine, without the necessity of replenishing the device between each vended operation

This Article applies only to County vending machine service contracts.

(a) An item designated as a healthy food choice must contain: (1) no more than 200 calories per package; (2) less than 35% of total calories from fat, except for foods containing 100% nuts or seeds with no added fats; (3) less than 10% of calories from saturated fat; and (4) no more than 35% of calories from total sugars, except for 1%, 2%, or non-fat dairy products, non-dairy milk products, fruits, and vegetables. (b) At least one healthy food choice offered in a vending machine must meet the Food and Drug Administration’s definition of “low sodium”. (c) Except as provided in paragraph (d), an item designated as a healthy beverage choice must contain fewer than 40 calories per serving. (d) The following beverages may also be designated as a healthy beverage choice: (1) fat-free or 1% low fat dairy milk; (2) calcium or vitamin D fortified soy milk with less than 200 calories per container; (3) a container with 12 ounces or less of: (A) 100% fruit juice; (B) vegetable juice that contains less than 230 milligrams of sodium per serving; or (C) fruit juice combined with water with no added caloric sweeteners and no more than 200 milligrams of sodium per container.

(a) Any new vending machine service contract or vending machine service contract renewal the County enters into on or after April 18, 2017 must require the following: (1) Any packaged food or beverage item offered for sale in a vending machine contain: (A) less than 0.5 grams of trans-fat per serving; and (B) no more than 200 milligrams of sodium per package. (2) Any beverage offered for sale in a vending machine must not contain more than: (A) 250 calories; or (B) 20 fluid ounces. (3) Water without added caloric sweeteners must be stocked in a beverage vending machine. (4) Food and beverage items that meet the nutrition requirements in Section 11B-86 must be: (A) displayed in a way that is distinguishable from food and beverage items that do not meet those requirements; and (B) stocked in positions with highest selling potential as determined by the Director of the Department of General Services. (5) Food and beverage items that meet the nutrition requirements in Section 11B-86 must be comparatively priced or less expensive than products that do not meet those standards. (6) Vending machines must display nutritional labeling that complies with the standards for nutritional labeling set forth in 21 Code of Federal Regulations, Sections 101 and 109, or any successor provision. (b) In addition to the requirements of paragraph (a), any new vending machine service contract or vending machine service contract renewal the County enters into on or after July 1, 2017 must require that at least 50% of the food and beverage items offered for sale in vending machines meet the requirements in Section 11B-86. (c) In addition to the requirements of paragraph (a), any new vending machine service contract or vending machine service contract renewal that the County enters into on or after July 1, 2018 must require that at least 65% of the food and beverage items offered for sale in vending machines meet the requirements in Section 11B-86.

The Director of the Department of General Services must submit a report to the County Council and County Executive by September 30 each year. The report must include: (a) an assessment of compliance with this Article; (b) successes, challenges, and barriers experienced in implementation; and (c) any recommendations for improvement of the standards and compliance.

This Article is intended to: (a) prevent the interruption of services to County residents provided by private contractors due to concerted economic action or a lock-out during a labor dispute; and (b) protect the County’s proprietary interests against economic risks and delays associated with concerted economic action or lock-outs during a labor dispute.

In Sections 11B-89 and 11B-91, the following words have the meanings indicated: Concerted economic action means an attempt to resolve a labor dispute using economic pressure against an employer initiated or conducted by a labor organization, or a group of employees acting in concert with a labor organization, including striking, picketing, or boycotting. Covered Contract means a County contract to provide residential solid waste, recycling, or yard waste collection and disposal services directly to County residents with a value equal to or greater than $250,000. Director means the Director of the Office of Procurement or the Director’s designee. Labor dispute means any dispute between an employer and its employees concerning wages, hours, and conditions of employment, or concerning the representation of employees for bargaining over wages, hours and conditions of employment. Labor organization means an employee organization established for the principal purpose of engaging in collective bargaining with employers concerning wages, hours, and conditions of employment. Labor peace agreement means a written contract between an employer and a labor organization that represents or is seeking to organize that employer’s employees that includes a provision: (a) prohibiting the labor organization and all employees performing services under a covered contract from engaging in any concerted economic action with the employer for the duration of the County contract; (b) prohibiting the employer from engaging in a lock-out of the employees performing services under a covered contract for the duration of the County contract; and (c) requiring that all labor disputes between the employer and the employees performing services under a covered contract be resolved through final and binding arbitration. Lock-out means the temporary closing of a business or the refusal by an employer to allow employees to work until a labor dispute is settled.

(a) Determination. Before issuing a solicitation for a covered contract, the Director must determine if a labor peace agreement would be in the best interest of the County after considering: (1) the duration of the contract; (2) the adverse financial or economic impact of any disruption in services; (3) the cost associated with finding replacement services; (4) the risk of disruption of services; (5) the history of strikes or lockouts disrupting County services provided by the contract; (6) the potential adverse effect of a labor peace provision on competition for the contract; and (7) any other factors affecting the public interest. (b) Approval. If the Director finds that a labor peace provision is in the best interest of the County for this covered contract, the Director must recommend the inclusion of a labor peace provision to the Chief Administrative Officer in writing. If the Chief Administrative Officer approves a recommendation to include a labor peace provision in the contract, the Director must include a labor peace provision in the solicitation for bids or proposals. (c) Implementation. (1) If the covered contract documents require a labor peace agreement, the contractor awarded the contract must execute a labor peace agreement with a labor organization within sixty (60) days after the later of: (A) receiving the notice of award from the County; or (B) receiving a request for a labor peace agreement from a labor organization that already represents or seeks to represent the employees performing services under the covered contract. (2) The contractor may satisfy this requirement by executing a: (A) preliminary Labor Peace Agreement covering labor disputes over the representation of employees performing services under a covered contract by a labor organization that is designed to be supplanted by a comprehensive collective bargaining agreement; (B) comprehensive collective bargaining agreement; or (C) documenting that no labor organization requested a labor peace agreement or that a labor organization refused to negotiate a labor peace agreement in good faith. (d) Enforcement. The Director may impose appropriate sanctions and remedies against a contractor for a violation of this Article as provided in applicable regulations or by contract, including termination for default.

(a) Definitions. In this Section, the following terms have the meanings indicated. Economic participation means the participation of the County in a hotel project through a lease, loan, financing, tax increment financing, underwriting, or guarantee. Employee means an individual whose primary place of work is at the site of a hotel project and who is employed by an employer. Employer means any person who employs employees at the site of a hotel project. Employer does not include a person: (1) who employs fewer than the equivalent of 15 employees at a hotel project; (2) who has entered into one or more agreements with one or more labor organizations regarding the employees at the hotel project, if the Chief Administrative Officer determines that the agreement provides protection from the risks of labor-management conflict that is at least equal to the protection provided by the minimum terms of a labor peace agreement; or (3) whose ongoing economic performance and potential for labor-management conflict at the site will not, in the determination of the Chief Administrative Officer, substantially affect the County’s proprietary interest in the hotel project. Hotel project means the development, financing, construction, renovation, or operation of a hotel or conference center located within the County. Labor organization means a labor organization as defined under the National Labor Management Relations Act, 29 U.S.C. §152(5), as amended. Labor peace agreement means a written agreement that: (1) is enforceable between an employer and a labor organization under the National Labor Management Relations Act, 29 U.S.C. § 185(a), as amended; and (2) contains, at a minimum, a provision prohibiting the labor organization and its members from engaging in any picketing, work stoppage, boycott, or other economic interference with the employer’s operations in which the County has a proprietary interest, for the duration of that interest. (b) Findings. (1) The County participates in, and may in the future participate in, hotel projects, as a property owner, lessor, proprietor, lender, or guarantor, facing similar risks and liabilities as those faced by other business entities that participate in these ventures. (2) In these situations, the County: (A) has an ongoing proprietary interest in the projects and a direct interest in their financial performance; and (B) must make prudent management decisions, similar to any private business entity, to ensure efficient management of its business concerns and to maximize benefits and minimize risks. (3) One risk to the County’s proprietary interests is the possibility of labor-management conflict, which can result in delays, work stoppages, picketing, strikes, consumer boycotts, increased costs, reduced revenues, and other forms of adverse economic pressure. (4) The risks of labor-management conflict are heightened in the hotel industry because of a documented history of labor-management conflict in this industry and because tourism and conventions are critical to the County’s economy. (5) One way of reducing risks to the County’s proprietary interests is to require, as a condition of the County’s economic participation in a hotel project, that employers participating in the hotel project seek agreements with labor organizations in which the labor organizations agree to forbear from adverse economic action against the employer’s operations. (c) Determination of proprietary interest. (1) If the County participates economically in a hotel project, the Chief Administrative Officer must determine, under paragraphs (2) and (3) of this subsection, whether the County has a proprietary interest in the hotel project. (2) The Chief Administrative Officer must determine that the County has a proprietary interest in a hotel project if: (A) through a lease of real property that is owned by the County and used for the hotel project, the County receives operating profit based on the financial performance of the project, excluding government fees, tax revenue, assessment revenue, or similar fees and revenues, except for tax revenue under the circumstances specified in subparagraphs (C) and (D) of this paragraph; (B) through a contract to manage or operate a hotel or conference center, situated on or in real property owned by the County, the County receives operating profit based on the financial performance of the project, excluding government fees, tax revenue, assessment revenue, or similar fees and revenues, except for tax revenue under the circumstances specified in subparagraphs (C) and (D) of this paragraph; (C) ongoing revenues from the hotel project, including incremental tax revenues generated by the project, are used to repay loans provided by the County to assist the development of the hotel project; (D) ongoing revenues from the hotel project, including incremental tax revenues generated by the hotel project, are used to pay debt service on bonds provided by the County to assist the development of the hotel project; or (E) the County has significant assets at risk because it has agreed to underwrite or guarantee the development of the hotel project or loans related to the hotel project. (3) The Chief Administrative Officer must determine that the County does not have a proprietary interest in a hotel project if the Chief Administrative Officer finds that: (A) the present value of the County’s proprietary interest is less than $1,000,000 annually; or (B) the risk to the County’s financial or other nonregulatory interest resulting from labor-management conflict is so minimal or speculative that a labor peace agreement would not support the County’s proprietary interest in the project. No interest is considered economic and nonregulatory if it arises from the exercise of regulatory or police powers, such as taxation (except as set forth in subparagraphs (C) and (D) of paragraph (2) of this subsection), zoning, or the issuance of permits or licenses. (4) Procedural requirements. Each determination by the Chief Administrative Officer under this subsection must be contained in a written document that: (A) specifies the reasons for the determination; and (B) is provided to the Council and to each employer at the hotel project. (d) Labor peace agreements required. If the Chief Administrative Officer determines that the County has a proprietary interest in a hotel project under subsection (c), the County must require, as a condition of its economic participation in the hotel project, that each employer on the hotel project, including each subcontractor or sublessee, enter into a labor peace agreement with each labor organization that represents, or seeks to represent, the employer’s employees at the hotel project. (e) Implementation. (1) A contract, including a renewal, extension, or material amendment to a contract, a lease, a loan, a guarantee, or another written instrument between the County and the beneficiary of the County’s economic participation in a hotel project must include provisions governing default, damages, or rescission that the County considers appropriate to assure that the requirements of this Section are met. (2) A request for proposals, invitation to bid, or similar document issued by the County regarding a hotel project must include a reference to and summary of this Section. (3) Failure to include a reference or summary in a document under paragraph (2) of this subsection does not exempt an employer otherwise subject to the requirements of this Section. (f) Compliance. (1) If a labor peace agreement is required under subsection (d), each employer on the hotel project must execute a labor peace agreement with a labor organization within 60 days after the later of: (A) receiving written notice from the County that agreements are required under this Section; or (B) receiving a request for a labor peace agreement from a labor organization that already represents or seeks to represent the employees performing services on the hotel project. (2) The employer may satisfy the requirements under paragraph (1) of this subsection by providing to the County: (A) copies of existing labor peace agreements that meet the requirements of this Section for the hotel project; (B) documentation that no labor organization requested a labor peace agreement for the hotel project; or (C) documentation from which the Chief Administrative Officer finds that the labor organization insisted on terms in the labor peace agreement that would be arbitrary and capricious. (g) Enforcement. The County may include appropriate sanctions and remedies against an employer for a violation of the requirements of this Section in any contract, lease, loan, guarantee, or other written instrument related to the hotel development. Sec. 3. Existing hotel projects. Notwithstanding Section 2 of this Act, the County encourages employers on existing hotel projects, in which the County has a proprietary interest, to enter into labor peace agreements with labor organizations representing, or seeking to represent, employees on the hotel projects.

This Article is intended to bolster the County’s economic growth and support the creation and retention of employment opportunities within the County by establishing a ten percent (10%) preference for the award of a County contract to a County-based business.

In this Article, the following words have the meanings indicated. Broker means a person that provides goods or services (other than real estate, investment, or insurance sales) on a pass-through basis as: (a) a supplier of goods who: (1) does not own, operate, or maintain a place of business in which goods of the general character required under the contract are kept in stock in the regular course of business; (2) does not regularly assume physical custody or possession of goods of comparable character to those offered to the County; or (3) exclusively acts as a middleman in the sale of goods to the County; or (b) a supplier of services who does not regularly maintain the capability, capacity, training, experience, and applicable regulatory licensing to directly perform the principal tasks of a contract with the County and must provide the principal tasks through a subcontract with a third party. Director means the Director of the Office of Procurement or the Director’s designee. Local Business means a business, other than a broker, that: (a) has its principal place of business in the County; (b) meets criteria established by method 2 regulations; and (c) is certified by the Director as a Local Business under the provisions of this Article.

This Article applies to all procurement purchases solicited under Sections 11B-9 or 11B-10.

(a) Eligibility. To be eligible for local business preference points, a business must affirm and provide supporting documentation to the Director to show that it is a local business as defined in Section 11B-93. The Director may investigate and verify the information provided on the application, as necessary, and must certify a business as a local business for the purposes of this Article. (b) Certification. Preference points must be applied only to a business: (1) that has a valid local business certification when the business submits a bid or proposal; or (2) who has applied for local business certification before the time to submit a bid or proposal has passed. (c) Notice. The Director must publicly notify businesses of prospective procurement opportunities. (d) Competitive sealed bids. The Director must adjust the bid of a Local Business who submits a bid in response to an Invitation for Bid issued under Section 11B-9: (1) by reducing the bid price(s) by a factor of 10%, but not to exceed $200,000, for the purposes of evaluation and award only; or (2) if a Local Business is eligible for a reciprocal preference pursuant to Section 11B-9(j), the bid of the Local Business must be adjusted by that reciprocal preference if it exceeds the 10% preference factor. The Local Business preference points authorized under this Article must not be combined with reciprocal preference points authorized under Section 11B-9(j). (e) Competitive sealed proposals. The Director must include an evaluation factor awarding additional points for a proposal from a Local Business worth 10% of the total available points in a Request for Proposals issued under Section 11B-10. (f) Waiver. The Director may waive a bid or proposal preference under this Section in a solicitation if the Director finds that a preference would result in the loss to the County of Federal or State funds.

The Executive must adopt regulations, by Method 2, to implement this Article. The regulations must include: (a) Certification requirements for a business to qualify as a Local Business; (b) Procedures to certify, re-certify, or decertify a Local Business; and (c) Procedures that will enable the Director to monitor compliance with the Local Business Preference Program.

By October 31st of each year, the Director must report to the Council on the Local Business Preference Program. This report must include the number, solicitation type and dollar amount of contracts that were awarded pursuant to the Program.

(a) A person must not: (1) fraudulently obtain or retain, attempt to obtain or retain, or aid another person in fraudulently obtaining or retaining, or attempting to obtain or retain, certification as a Local Business; (2) willfully make a false statement to a County official or employee for the purpose of influencing the certification of an entity as a Local Business; or (3) fraudulently obtain, attempt to obtain, or aid another person in fraudulently obtaining, or attempting to obtain, public monies to which the person is not entitled under this Article. (b) A violation of this Article: (1) is a class A violation; and (2) may disqualify the violator from doing business with the County for up to 2 years.

In this Article, the following terms have the meanings indicated: Director means the director of the Office, or the Director’s designee. Grant means an agreement in which a grantor transfers money or something of value to a grantee to support a public purpose. Office means the Office of Grants Management. Racial equity and social justice means changes in policy, practice and allocation of County resources so that race or social justice constructs do not predict one’s success, while also improving opportunities and outcomes for all people.

(a) Except as provided in subsection (b), this Article applies to any grant: (1) received by the County as a grantee; or (2) offered by the County as a grantor. (b) This Article does not apply to any: (1) purchase of goods or services by the County for the direct use or benefit of the County; (2) franchise under Sections 8A-9 or 49-20; (3) license or permit; (4) conveyance or use of real property; (5) bond; (6) loan; (7) tax credit; or (8) individual right or benefit.

(a) The Office must maintain a grants database that includes current information regarding: (1) each grant opportunity offered by the County; (2) the purpose, date, amount, and grantor of each grant received by the County; and (3) the purpose, date, amount, and grantee of each grant awarded by the County. (b) The grants database must be available to the public under Section 2-154(b).

(a) The Office, in coordination with the Office of Procurement, must develop countywide policies and procedures to: (1) implement best practices regarding grants management; (2) maximize the County’s use of federal, State, and non-governmental grant opportunities; (3) maximize the efficiency and effectiveness of grants awarded by the County; (4) ensure public transparency and ethical practice in grants management; and (5) ensure that grants management in the County is consistent with the County’s racial equity and social justice goals. (b) The Executive may adopt method (1) regulations to implement policies and procedures under subsection (a).

The Director must submit a quarterly report on the activities of the Office to the Executive and the Council. The report must include: (1) an overview of the grants process and awards; (2) data regarding grants received by the County; (3) data regarding grants awarded by the County; (4) public outreach activities of the Office and the outcomes of the outreach activities; (5) progress in racial equity and social justice goals; and (6) any recommendations to improve policies and procedures regarding grants management in the County.