Sec. 10A-164. Enforcement of County-based business assistance
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-164 (2026)
Sec. 10A-164. Enforcement of County-based business assistanceLinkCopy Citation
(a)
For the entire duration of the procurement contract or agreement, any vendor given a preference under this Division or subject to the business participation requirements under this Division shall maintain no less than the percentage of participation stated in the winning bid or proposal. Failure to comply with this Division may subject any vendor given a business preference under this Division, or that is subject to business participation requirements under this Division to a penalty, to include monetary fines of up to five percent (5%) of the value of the contract for each violation, a cancellation of the contract or agreement, or suspension or debarment of the vendor under Section 10A-148 of this Subtitle.
(1)
A vendor may request a waiver of the requirements of this Section by the Purchasing Agent. On a case by case basis, such a waiver request may be granted by the Purchasing Agent if "best efforts" by the vendor to comply have been demonstrated as prescribed in Subsection (e) of this Section, subject to Section 10A-159.01.
(b)
Any vendor given a County-based business preference under this Division, subject to the County-based small business, County-based minority business enterprise, and Locally-owned and Operated Business participation requirements of Section 10A-161(a), or the Disparity Study Implementation Goals of Section 10A-161 shall submit a quarterly report within thirty (30) calendar days after the end of each quarter to the Purchasing Agent, the County Auditor, and a compliance manager designated by the County Council that provides:
(1)
The percentage and U.S. dollar value of certified County-based small business participation, County-based minority business enterprise participation, or Locally-owned and Operated Business participation, and certified participation of businesses within the disparity classifications of businesses specified in Section 10A-161(c) (only for the disparity classifications of businesses for which the procurement has participation goals, if any) in the most recent quarterly period, including reporting the percentage and U.S. dollar value of certified participation in the aforementioned categories for the period from the beginning of the calendar year to the reporting date;
(2)
The name and principal place of operation of each business receiving payment under the procurement in the most recent quarterly period, including the U.S. dollar value and percentage of the total contract dollars paid in the most recent 3 month period to each business; and
(3)
The expected percentage and U.S. dollar value of certified County-based small business participation, County-based minority business enterprise participation, and Locally-owned and Operated Business participation, and certified participation of businesses within the disparity classifications of businesses specified in Section 10A-161(c) (only for the disparity classifications of businesses for which the procurement has participation goals, if any) in the next 12 month period.
(c)
At the discretion of the Purchasing Agent or the County Auditor, any vendor given a business preference under this Division or subject to the business participation requirements of this Division shall be subject to an audit of documents or other information deemed necessary by the Purchasing Agent or the County Auditor to verify compliance with this Section upon thirty (30) calendar days written notice, including, but not limited to, copies of any contracts with subcontractors or other vendors.
(d)
The Purchasing Agent shall make compliance with this Subdivision a written condition of any contract or agreement for any procurement subject to Sections 10A-112, 10A-113, and 10A-114 of this Subtitle, by including a mandatory written compliance clause in every such contract or agreement.
(e)
In this Subdivision, the term "best efforts" means efforts to the maximum extent practicable have been made to meet the requirement. A vendor given a County-based business preference under this Division or subject to the County-based small business, County-based minority business enterprise, and/or Locally-owned and Operated Business participation requirements or Disparity Study Implementation Goals under this Division shall not be deemed to have demonstrated "best efforts" under Subsection (a) of this Section where there is a sufficient number of County-based small businesses, County-based minority business enterprises, Locally-owned and Operated Businesses, and, if applicable, diversity classifications of businesses to enable the vendor to meet the requirements of Subsection (a) of this Section. A waiver authorized by Paragraph (1) of Subsection (a) of this Section shall not be granted unless the vendor seeking the waiver:
(1)
Provides a detailed written statement of the reasons the vendor is unable to maintain its required percentages of participation of County-based businesses, County-based small businesses, County-based minority business enterprises, and/or, if applicable, disparity classifications of businesses (collectively meaning, in this Division, "Diverse Suppliers");
(2)
Provides a detailed written statement of its efforts to maintain its percentages of participation of Diverse Suppliers originally required in the procurement, including the precise reasons and justifications for the departure of County-based businesses and County-based small businesses from the procurement since the initial award of the procurement and the vendor's efforts to contact and negotiate with other Diverse Suppliers including:
(A)
The names, addresses, and telephone numbers of the Diverse Suppliers that were contacted and the dates such County-based businesses were contacted, and
(B)
A description of the information provided to Diverse Suppliers regarding the descriptions of services or goods sought for the procurement, including plans, specifications and anticipated time schedule for any portions of the work to be performed, where applicable;
(3)
As to each Diverse Supplier (within a category for which there is a participation requirement or goal on the procurement) that placed a subcontract or other quotation or offer which the vendor considered not to be acceptable, a detailed written statement that includes sufficient reasons for this conclusion;
(4)
A written list of Diverse Supplier (within a category for which there is a participation requirement or goal on the procurement) found to be unavailable to perform under the procurement; and
(5)
Provides a detailed description demonstrating that the vendor made sufficient efforts to assist interested Diverse Supplier (within a category for which there is a participation requirement or goal on the procurement) in obtaining bonding, lines of credit, or insurance required by the vendor.
Based on an analysis of the information provided by the vendor seeking a waiver authorized by Paragraph (1) of Subsection (a) of this Section and an analysis by the Purchasing Agent of the availability of Diverse Supplier (within a category for which there is a participation requirement or goal on the procurement) that provide services or goods that are the subject of the procurement, the Purchasing Agent shall determine whether "best efforts" to comply have been demonstrated by the vendor and whether to propose to grant the vendor's request for a waiver authorized by Paragraph (1) of Subsection (a) of this Section, subject to the approvals required by this Section. If the Purchasing Agent does propose to grant a waiver authorized by Paragraph (1) of Subsection (a) of this Section, the Purchasing Agent shall propose a new minimum percentage requirement for participation of the categories of Diverse Suppliers originally required in the procurement for the vendor's procurement based on the availability of Diverse Suppliers that provide services or goods that are the subject of the procurement, subject to the approvals required by this Section.
(f)
Small Business Subcontracting Plan required. Where the prime contractor is not a County-based small business, County-based minority business enterprise, or Locally-owned and Operated Business, the fifty percent (50%) County-based small business, County-based minority business enterprise, and Locally-owned and Operated Business participation requirement of Sections 10A-161(a) and 10A-114(c) shall be governed by a Small Business Subcontracting Plan, submitted by the prime contractor.
(1)
Small Business Subcontracting Plan is a written plan listing all subcontracts, including individual contract values, between the prime contractor (contract award recipient) and Diverse Suppliers (within a category for which there is a participation requirement or goal on the procurement); and between Diverse Suppliers and Non-Diverse Suppliers and all lower tier Diverse Supplier (within a category for which there is a participation requirement or goal on the procurement) subcontractors for the procurement.
(2)
At the time of bid or proposal submission for procurements subject to Section 10A-161(a) or prior to the execution of a contract between the County and any vendor for a procurement subject to Section 10A-114(c), the prime contractor(s) shall submit a Small Business Subcontracting Plan executed by the prime contractor and all of the subcontractors being utilized to fulfill the fifty percent (50%) County-based small business, County-based minority business enterprise, and Locally-owned and Operated Business participation requirement of Section 10A-161(a) or 10A-114(c).
(A)
For procurements subject to Section 10A-161(a), any bid or proposal that does not meet the requirements of this Subsection shall be deemed nonresponsive.
(B)
Any prime contractor failing to comply in good faith with the components of its Small Business Subcontracting Plan is in material breach of its contract with the County.
(C)
A prime contractor may only modify its Small Business Subcontracting Plan, including modifying its subcontractors, for cause stated in writing, with the approval of the Purchasing Agent, provided that the prime contractor continues to comply with the participation requirements of Sections 10A-161(a) or 10A-114(c). A County-based small business, County-based minority business enterprise, and Locally-owned and Operated Business subcontractor can only be removed or have its participation (in contract value) reduced in the Small Business Subcontracting Plan due to incapability to adequately perform the work required under the procurement contract.
(D)
The Purchasing Agent shall reject any Small Business Subcontracting Plan that does not comply with this Subsection.
(3)
This Subsection shall become effective on October 1, 2017.
(g)
The Office of Procurement shall maintain a copy (in electronic or hard copy form) of the final executed version of every procurement contract or agreement (including purchase orders) authorized by this Subtitle including any subsequent contract amendments or modifications.
(h)
Certified business participation under this Subtitle, including for County-based minority business enterprises, County-based small businesses, County-based businesses, Locally-owned and Operated Businesses, minority business enterprises, and County-located businesses, shall not include business activity whereby the certified firm's role is limited to that of an extra participant in a transaction, contract, or project through which funds are passed in order to obtain the appearance of certified business participation. The Purchasing Agent may also adopt regulations establishing standards to ensure that certified firms are performing "commercially useful functions" for the purposes of certified business participation determinations.