# COMAR Title 21 — State Procurement Regulations

## Subtitle 05 — Procurement Methods and Project Delivery Methods

### Chapter 01 — General Provisions

#### Regulation .04-1 Reciprocal Preferences — Architectural or Engineering Services.

*COMAR 21.05.01.04-1*

A. Definitions.

  (1) In this regulation, the following terms have the meanings indicated.

  (2) “Nonresident firm” means a business entity that:

    (a) Has one office that is a principal office for the entity and is not located in the State; or

    (b) For an entity that has offices in multiple states, has not had a principal office located in the State for at least 6 months immediately before the date of a request for proposals.

  (3) “Preference” means:

    (a) A percentage preference;

    (b) An employee residency requirement; or

    (c) Any other law, policy, or practice that favors a resident-firm offeror over a nonresident-firm offeror.

  (4) Principal Office.

    (a) “Principal office” means a primary place of business that is staffed on a regular basis to provide the services that are requested by a unit in a request for proposals.

    (b) “Principal office” does not include a satellite office or an office that is minimally staffed and is not open on a regular basis to provide the services that are requested by a unit in a request for proposals.

  (5) “Request for proposals” means a request for architectural services or engineering services that is issued in accordance with State Finance and Procurement Article, §13-112, Annotated Code of Maryland.

  (6) Resident Firm.

    (a) “Resident firm” means a business entity that is licensed or otherwise authorized to provide architectural or engineering services in the State, and:

      (i) For an entity that has one office, the office is located in the State; or

      (ii) For an entity that has offices in multiple states, has had a principal office located in the State for at least 6 months immediately before the date of a request for proposals.

    (b) “Resident firm” includes a joint venture that was entered into before the date of the request for proposals for which the joint venture submits a proposal and includes one party that holds at least a 51 percent interest in the joint venture and meets the definition in §A(6)(a) of this regulation.

B. Conditions. A procurement agency shall apply a preference to a proposal from a resident firm if:

  (1) A nonresident firm is a responsible offeror determined to be the most qualified person to submit a proposal in accordance with State Finance and Procurement Article, §13-112, Annotated Code of Maryland, and the state in which the principal office of the nonresident firm is located has a preference that favors an offeror from that state to the disadvantage of an offeror from the State of Maryland;

  (2) A resident firm is a responsible offeror that certifies it meets the requirements for a resident firm at the same time that it submits the proposal for which the preference would apply; and

  (3) The nonresident firm’s state’s preference does not conflict with a federal law or grant affecting the procurement contract.

C. Application.

  (1) At the request of a unit, a nonresident firm shall provide the following documentation for the state in which the principal office of the nonresident firm is located:

    (a) A copy of the current statute, resolution, policy, procedure, or executive order that establishes a preference that favors an offeror from that state to the disadvantage of an offeror from the State of Maryland; or

    (b) A certification that the other state does not have a preference that favors an offeror from that state to the disadvantage of an offeror from the State of Maryland.

  (2) If a resident firm qualifies for a preference established under this section and for another preference established under State Finance and Procurement Article, Division II, Annotated Code of Maryland, the unit:

    (a) May not apply more than one preference to the proposal from the resident firm; and

    (b) Shall apply the preference to the proposal from the resident firm that is most advantageous to the resident firm.

  (3) If, when making a determination of qualification under a qualification-based selection, a unit determines that a proposal from a resident firm and a proposal from a nonresident firm are equally qualified, the unit may apply a preference to the proposal from the resident firm.

  (4) A unit may not apply a preference to a proposal submitted by a resident firm if the resident firm does not submit the certification required under §B(2) of this regulation at the same time that it submits the proposal.