Article XVI. Service Contracts.
Montgomery County, Md., Code § 11B-71 (2026)
Sec. 11B-71. Definitions.LinkCopy Citation
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).
Montgomery County, Md., Code § 11B-72 (2026)
Sec. 11B-72. Scope of Article.LinkCopy Citation
(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.
Montgomery County, Md., Code § 11B-73 (2026)
Sec. 11B-73. Approval of solicitation for service contract.LinkCopy Citation
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.
Montgomery County, Md., Code § 11B-74 (2026)
Sec. 11B-74. Certification by Chief Administrative Officer.LinkCopy Citation
(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.
Montgomery County, Md., Code § 11B-75 (2026)
Sec. 11B-75. Enforcement.LinkCopy Citation
(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.
Montgomery County, Md., Code § 11B-76 (2026)
Sec. 11B-76. Right of certified representative.LinkCopy Citation
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.