Sec. 10A-161. County-based business participation requirements
Codified through Bill No. CB-018-2026, adopted May 12, 2026, effective July 24, 2026. Source: Municode, Supplement 2026 Update 2. Editorial notes and legislative history omitted.
Prince George's County, Md., Code § 10A-161 (2026)
Sec. 10A-161. County-based business participation requirementsLinkCopy Citation
(a)
For any procurement that is greater than One Million Dollars ($1,000,000) in total value for which a County agency or the County government secures competitive bids or proposals the Purchasing Agent shall require the following:
(1)
At least fifty percent (50%) certified County-based small business, County-based minority business enterprise, and/or Locally-owned and Operated Business participation, with a floor of fifteen percent (15%) County-based minority business enterprise participation; provided, that the costs of materials, goods, and supplies shall not be counted towards the fifty percent (50%) participation requirement, unless such materials, goods, and supplies are purchased from County-based small businesses, County-based minority business enterprises, and/or Locally-owned and Operated Businesses; and
(2)
A bid or proposal responding to a solicitation shall be deemed nonresponsive and shall be rejected by the Purchasing Agent if it fails to meet the fifty percent (50%) minimum certified County-based small business, County-based minority business enterprise, and Locally-owned and Operated Business participation requirement in Paragraph (1) of this Subsection, unless the participation requirement is waived pursuant to Section 10A-159.01.
(3)
Any existing procurement contract or agreement for which a County agency or the County government secured competitive bids or proposals, including any existing multiyear contract or extended contract that does not include at least fifty percent (50%) minimum certified County-based small business, County-based minority business enterprise, and/or Locally-owned and Operated Business participation as prescribed in this Subsection at the time of any contemplated exercise of an option, extension, or renewal, including automatic extensions or renewals (e.g. "evergreen" contracts or agreements), shall not be renewed or extended unless the participation requirement is waived pursuant to Section 10A-159.01.
(b)
If the Purchasing Agent determines in writing that there are insufficient responsible County-based small businesses, County-Based Minority Business Enterprise, and/or locally-owned and operated businesses to completely fulfill the requirement of Paragraph (1) of Subsection (a) for a particular procurement or if the requirement would result in the loss of federal or state funds or grants, the Purchasing Agent may waive the participation requirements of Division 7 pursuant to and subject to Section 10A-159.01.
(c)
Disparity Study Implementation
(1)
On a procurement by procurement basis, the Purchasing Agent or the Purchasing Agent's designee shall establish an overall Minority Business Enterprise ("MBE") goal and MBE goals for the contract, consistent with the findings of availability and disparities in the most recent Prince George's County Utilization and Availability Study (hereinafter "County Disparity Study"), subject to paragraph (2), below.
(2)
For every procurement, the process for establishing an overall MBE goal and MBE subgoals shall be as follows:
(A)
The Purchasing Agent or the Purchasing Agent's designee shall determine whether the procurement exceeds $250,000 in value;
(B)
The Purchasing Agent or the Purchasing Agent's designee shall determine whether the procurement will include subcontracting;
(C)
If the procurement exceeds $250,000 in value and will include subcontracting, the Purchasing Agent or the Purchasing Agent's designee shall include an overall MBE goal and MBE subgoals in accordance with the "Disparity Study Recommended MBE Goals and MBE Subgoals" set forth in subparagraph (E), below, unless the number of certified firms that are MBE firms and/or firms within the recommended MBE subgroup that are available to perform the work on the contract is less than three (3). If the procurement exceeds $250,000 in value and will include subcontracting, the Purchasing Agent or the purchasing agent's designee shall include an overall MBE goal and MBE subgoals in accordance with the "Disparity Study recommended MBE goals and MBE subgoals" set forth in subparagraph (e), below, unless the number of certified firms that are MBE firms and/or firms within the recommended MBE subgroup that are available to perform the work on the contract is less than three (3). If the Purchasing Agent or Purchasing Agent's designee determines not to include an overall MBE goal and/or the recommended MBE subgoals in accordance with the "Disparity Study Recommended MBE goals and MBE subgoals" set forth in subparagraph (e), below, the determination shall be in writing and must be approved in advance by the director of central services.
(D)
MBE waiver. If a bidder or offeror is unable to meet the overall MBE goal and/or any MBE subgoals established for a contract, the bidder or offeror may request a waiver from the Purchasing Agent or the Purchasing Agent's designee and submit documentation demonstrating that it made best efforts to meet the overall MBE goal and MBE subgoals. "Best efforts" shall be defined in procurement regulations with the approval of the Purchasing Agent. Such a waiver determination must be in writing and may be granted only with the approval of the Purchasing Agent.
(E)
Disparity Study Recommended MBE goals and MBE subgoals. The "Disparity Study Recommended MBE goals and MBE subgoals" are as follows:
(i)
for any construction or public works contracts or procurements, the MBE goal is 43%, the AABE subgoal is 23%, and the AAPIBE subgoal is 7%.
(ii)
for any architectural and engineering contracts or procurements, the MBE goal is 33% and the AABE subgoal is 16%.
(iii)
for any professional services contracts or procurements, the MBE goal is 29%, the AABE goal is 15%, and LBE goal is 5%.
(iv)
for any other services contracts or procurements, the MBE goal is 34% and the LBE goal is 6%.
(v)
for any goods and supplies contracts or procurements, the MBE goal is 22% and the LBE goal is 4%.
(F)
An MBE goal and/or an MBE subgoal is calculated as a percentage of the county's expenditures on the overall contract or procurement. MBE subgoal expenditures are a subset of overall MBE goal expenditures for a contract or procurement and count towards achieving the overall MBE goal for that contract or procurement.
(d)
Failure to apply the applicable provisions of this subtitle to a procurement award shall render the procurement award and/or contract or agreement void.
(e)
On a case by case basis, for any procurement subject to the requirements of Subsection (a) of this Section, the Purchasing Agent may require more than fifty percent (50%) certified County-based small business, County-based minority business enterprise, and Locally-owned and Operated Business participation if the Purchasing Agent determines that there is a sufficient number of County-based small businesses, County-based minority business enterprises, or Locally-owned and Operated Businesses to justify a higher than 50% certified County-based small business, County-based minority business enterprise, and/or Locally-owned and Operated Business participation requirement.
(f)
The Prince George's County Supply Schedule Program. There is established a Prince George's County Supply Schedule (PGCSS) program, a sheltered-market procurement program shall be awarded only to County-based small businesses. The PGCSS program may consist of multiple award schedules or other procurement programs established by the Purchasing Agent.
(1)
Pursuant to Section 10A-138, the Purchasing Agent shall propose to the County Council the PGCSS a list of North American Industry Classification System (NAICS) industry classifications or comparable categories of goods or services that shall only be available for bid or award among County-based small businesses, County-based minority business enterprises and/or County-based businesses during the next fiscal year, based on the capacity and prevalence of County-based small businesses, County-based minority business enterprises and/or County-based businesses within those industry categories. The proposed PGCSS is subject to approval by resolution of the County Council or the PGCSS proposed by the Purchasing Agent shall go into effect for the next fiscal year.
(2)
A PGCSS contract may be awarded by:
(A)
Any source selection method authorized by this Subtitle;
(B)
A contract with a contractor who maintains a price agreement or schedule with any federal agency so long as the contract does not authorize a price higher than is contained in the contract between the federal agency and the contractor; or
(C)
A contract with a contractor who agrees to adopt the same pricing schedule for the same goods or services as that of a contractor who maintains a price agreement or schedule with any federal agency if the contract does not authorize a price higher than is contained in the contract between the federal agency and the contractor.
(3)
The Purchasing Agent or the Purchasing Agent's designee may issue a waiver subject to 10A-159.01.
(g)
If the Purchasing Agent determines there is a sufficient number of responsible firms in the respective procurement's industry area(s), the Purchasing Agent may restrict any competitive procurement subject to this Subtitle for solicitation and award to prime bidders or prime proposers that are County-based small businesses.
(h)
the acquisition of proprietary information technology goods and services shall not be subject to the requirements of Division 7 of this subtitle.
([(i)
Reserved.]
(j)
For any procurement subject to Section 10A-112, 10A-113 or 10A-114 of this Subtitle with a total value equal to or less than One Million Dollars ($1,000,000), each County agency or the Purchasing Agent shall set-aside the procurement only for award to County-based small businesses, subject to Paragraphs (1)-(3) of this Subsection.
(1)
A County agency shall not be required to set aside a procurement for County-based small businesses under this Subsection if there are not at least two (2) County-based small businesses that can sufficiently provide the services or goods which are the subject of the procurement. For procurements subject to 10A-112, a County agency may also refuse to set aside a procurement for County-based small businesses under this Subsection if the agency determines that the lowest County-based small business bid is for a price that is twelve percent (12%) or more above the likely price on the open market.
(2)
Only if a County agency satisfies the requirements of Paragraph (1) of this Subsection and receives written approval from the Purchasing Agent may the County agency thereafter award the procurement in the open market, subject to all of the other applicable preferences prescribed in this Subdivision.
(3)
Any existing contract or agreement, including any existing multiyear contract or extended contract, for a procurement funded by a County agency or the County government with a total value equal to or less than One Million Dollars ($1,000,000) that was not set-aside for County-based small businesses or County-based businesses pursuant to the requirements of this Section, at the time of any contemplated exercise of an option, extension, or renewal, including automatic extensions or renewals (e.g. "evergreen" contracts or agreements), shall not be renewed or extended. This Paragraph shall not apply to a contract or agreement for a procurement with greater than fifty (50%) certified County-based small business, County-based minority business enterprise, and/or Locally-owned and Operated Business participation.
(k)
The Purchasing Agent may waive the requirements of Subsection (c) of this Section for a procurement if the Purchasing Agent certifies in writing that such a requirement would result in the loss of federal or state funds, subject to the requirements of Section 10A-159.01.
(l)
Local Diverse Supplier Prime Contractor Program.
(1)
The Purchasing Agent shall reserve at least 20% of all construction-related procurements awarded by all units of the County Government, other than procurements for roads and bridges, solely for bids, proposals, and awards for prime bidders, prime proposers, and prime contractors that are:
(A)
Locally Owned and Operated Businesses; or
(B)
County-Based Minority Business Enterprises.
(2)
Reporting, Exemptions, and Public Notice.
(A)
Reporting. As part of the annual report to the County Council and County Executive required under Section 10A-176, the Purchasing Agent shall provide:
(i)
a list of procurements selected to be subject to the requirements of this Subsection during the fiscal year; and
(ii)
a summary and analysis of the outcome of the awarded procurements reserved in accordance with this Subsection for the previous fiscal year.
(B)
Exemption. If the Purchasing Agent determines that a procurement listed in accordance with Subparagraph (A), above, is no longer suitable for reservation in the Local Diverse Supplier Prime Contractor Program accordance with this Subsection, the procurement can be removed from reservation, provided that the Purchasing Agent identifies one or more additional procurements that replace the procurement value of the exempted procurement, which shall be included in the reserved procurements for that fiscal year in accordance with this Subsection.
(C)
Public notice. Any solicitations for procurements reserved for the Local Diverse Supplier Prime Contractor Program in accordance with this Subsection shall be made publicly available without cost or subscription on a website maintained by the Office of Procurement at the time of solicitation of bids or proposals.