Chapter 05. Procurement from Maryland Correctional Enterprises, Blind Industries and Services of Maryland, and the Employment Works Program
Regulation .01 Definitions.LinkCopy Citation
A.
In this chapter the following words have the meanings indicated.
B.
Terms Defined.
(1)
“Blind Industries and Services of Maryland” means the entity designated by law to produce supplies manufactured and assembled by processes involving blind workers.
(2)
“Community service provider” means an entity, the net income of which does not inure in whole or in part to the benefit of any shareholder or other individual, that is:
(a)
Organized under the laws of the United States or the State of Maryland;
(b)
Accredited by the Division of Rehabilitation Services of the State Department of Education for participation in the Employment Works Program; and
(c)
Operated in the interests of individuals who have a mental or physical disability, including blindness, that:
(i)
Constitutes a substantial barrier to employment; and
(ii)
Prevents the individual from engaging in competitive employment.
(2-1)
“Employment Works Program” means the program established in the Department of General Services by State Finance and Procurement Article, §14-108, Annotated Code of Maryland.
(3)
“Fair market price” means that price established in accordance with Regulation .03 of this chapter for a supply or service provided by a selling entity other than Maryland Correctional Enterprises.
(4)
“Individual-with-disability-owned business” means a business:
(a)
That is organized under the laws of the United States or of the State;
(b)
That is majority owned by an individual or individuals determined by the Division of Rehabilitation Services in the State Department of Education to have a disability, as defined by Education Article, Title 21, Subtitle 3, Annotated Code of Maryland;
(c)
Whose majority owner or owners are directly and significantly engaged in the daily operation of the business;
(d)
Whose workforce includes individuals with disabilities comprising a percentage of the workforce that is at or above the minimum required under the policies or guidelines established by the Pricing and Selection Committee for Preferred Providers;
(e)
Whose total gross revenues for contracts assigned under the Employment Works Program at the time of assignment do not exceed the maximum allowed under policies or guidelines established by the Pricing and Selection Committee for Preferred Providers; and
(f)
That continues to meet all other eligibility criteria established by the Pricing and Selection Committee for Preferred Providers.
(5)
“Maryland Correctional Enterprises” means a unit of the Division of Corrections of the Department of Public Safety and Correctional Services that is authorized by law to use prison labor to produce supplies or to provide services for sale to public entities and certain not-for-profit organizations.
(6)
“Master list” means a consolidated catalog, produced at least annually, that lists the supplies and services subject to procurement under this chapter. The master list indicates:
(a)
The selling entity from which a particular supply or service may be purchased;
(b)
The fair market price at which the supply or service will be sold; and
(c)
The ordering priority under Regulation .07C or D of this chapter if the supply or service can be furnished by more than one selling entity.
(6-1)
“Preferred Provider” means a provider of supplies or services given preference under this chapter.
(7)
“Prevailing average market price” means the current averaged competitive price as determined by the Pricing and Selection Committee for Preferred Providers for the same or substantially similar supply or service provided by State Use Industries.
(8)
“Pricing and Selection Committee for Preferred Providers” means the pricing authority responsible for reviewing and verifying the prevailing average market prices as proposed by Maryland Correctional Enterprises, setting the prices of supplies and services that Blind Industries and Services of Maryland provides to reflect the fair market prices for those supplies and services, and determining the fair market price of supplies, services, and other sales that the Employment Works Program community services providers and individual-with-disability-owned businesses provide, among other duties in accordance with State Finance and Procurement Article, §14-106, Annotated Code of Maryland.
(9)
“Selling entity” means Maryland Correctional Enterprises, the Blind Industries and Services of Maryland, Employment Works Program community service providers, or individual-with-disability-owned businesses.
(10)
“State aided or controlled entity” means any public or quasi-public institution that receives aid from the State or that is owned, controlled, or managed by the State.
Regulation .02 Scope.LinkCopy Citation
A.
Except as otherwise provided in these regulations, this chapter applies to every procurement of supplies or services that can be provided by a selling entity.
B.
Only supplies and services that directly benefit Division of Correction inmates, blind persons, or disabled persons, through meaningful work experiences, occupational opportunities, vocational rehabilitation and training, and work therapy, are to be provided by the selling entities.
C.
This chapter does not apply to supplies or services provided under subcontract to a selling entity.
D.
Nothing in this chapter shall require a procurement agency to lessen or otherwise alter its reasonable performance, quality, design, delivery, or quantity specifications in order to meet a selling entity's ability to provide a supply or service.
E.
Except as specifically provided in these regulations, nothing contained in this chapter shall limit or define a procurement agency's rights or remedies otherwise available by law or by contract.
F.
Services procured from an Employment Works Program community service provider are not subject to the cost savings requirements of State Personnel and Pensions Article, §13-405, Annotated Code of Maryland.
Regulation .03 Determining Fair Market Price.LinkCopy Citation
A.
In determining fair market prices for services or supplies, the Pricing and Selection Committee for Preferred Providers may consider:
(1)
The price on the open market of a similar quantity of services or supplies of equal quality and standards that meet the requirements of the procurement agencies;
(2)
The price last paid as a result of a competitive procurement selection process for substantially similar services or supplies as adjusted for inflation, deflation, or other change in market conditions;
(3)
A reliable independent appraisal of the value of substantially similar services or supplies;
(4)
A procurement agency's or control authority's reasonable estimate of the cost of substantially similar services or supplies and any other pertinent information; and
(5)
The cost of the services if performed by State personnel.
B.
If the fair market price for a service or supply cannot be determined absent a competitive procurement, the solicitation shall notify prospective bidders or offerors that one or more selling entities may respond to the solicitation and that any subsequent contract may be awarded to a selling entity if its bid or offer is deemed a fair market price by the Pricing and Selection Committee for Preferred Providers.
C.
Any negotiations conducted with a selling entity for the purpose of establishing a fair market price for a contract for services shall include a representative from the procurement agency.
Regulation .04 Duties of the Pricing and Selection Committee for Preferred Providers.LinkCopy Citation
The Pricing and Selection Committee for Preferred Providers shall:
A.
Determine the prevailing average market prices for supplies and services provided by Maryland Correctional Enterprises;
B.
Determine the fair market prices for supplies and services provided by Maryland Correctional Enterprises;
C.
Include in the master list:
(1)
A listing of those supplies and services available for procurement from Maryland Correctional Enterprises,
(2)
The fair market price for each supply and service,
(3)
Any necessary instructions governing the procurement of a supply or service from Maryland Correctional Enterprises;
D.
Compile, publish, and distribute, at least annually, the master list, which shall include:
(1)
Listings of supplies and services available from each of the selling entities,
(2)
The fair market prices of those supplies and services,
(3)
Instructions governing the procurement of those supplies and services, including the order of procurement priority when the same or substantially similar supply or service can be provided by more than one selling entity;
E.
Consult periodically with the procurement agencies and the selling entities to establish reasonable and uniform standards, including those governing quantity, quality, style, design, and delivery; and
F.
Designate an appropriate coordinating entity to facilitate distribution of procurement contracts among sheltered workshops.
G.
Review and verify the prevailing average market prices, as proposed by Maryland Correctional Enterprises, when changes are made to the pricing of existing goods and services that are available from Maryland Correctional Enterprises or for new goods or services that Maryland Correctional Enterprises intends to make available;
H.
Meet as often as necessary, at the call of any of its members, but at least annually;
I.
Ensure that supplies, services, or other sales provided by Blind Industries and Services of Maryland or an Employment Works Program community service provider create work opportunities for individuals who have a mental or physical disability, including blindness, for which Blind Industries and Services of Maryland or the Employment Works Program community service provider was established to assist;
J.
Choose appropriate supplies, services, or other sales for Employment Works Program community service providers and individual-with-disability-owned businesses to offer for procurement;
K.
Except for services and supplies provided under the Maryland Blind Vending Program, set prices to reflect the fair market prices of supplies, services, or other sales that Blind Industries and Services of Maryland, Employment Works Program community service providers and individual-with-disability-owned businesses provide;
L.
Adjust prices for the supplies, services, or other sales that Blind Industries and Services of Maryland and Employment Works Program community service providers and individual-with-disability-owned businesses provide, in accordance with market conditions;
M.
At the request of an Employment Works Program community service provider or an individual-with-disability-owned business, review and, if appropriate, change the price of a supply, service, or other sale;
N.
Establish and periodically review eligibility policies or guidelines for participating Employment Works Program community service providers and individual-with-disability-owned businesses;
O.
Maintain a current list of Employment Works Program community service providers and individual-with-disability-owned businesses;
P.
Periodically review and revise the list of Employment Works Program community service providers and individual-with-disability-owned businesses, and send any revised list to the Chief Procurement Officer, who shall make the list available to each person responsible for buying supplies or services for the State or a State aided or controlled entity;
Q.
Maintain current lists of supplies, services, or other sales that Maryland Correctional Enterprises, Blind Industries and Services of Maryland, and Employment Works Program community service providers and individual-with-disability-owned businesses provide;
R.
Periodically review and revise the lists of supplies, services, or other sales maintained in accordance with §Q of this regulation, and send any revised list to the Chief Procurement Officer, who shall make the lists available to each person responsible for buying supplies or services for the State or a State aided or controlled entity; and
S.
Review a request for and, if in the State’s interest, grant a waiver to a requested State or State-aided or controlled entity if either of the following conditions apply, in accordance with State Finance and Procurement Article, §14–103(d)(1), Annotated Code of Maryland:
(1)
The price of the needed supplies and services is at least 10 percent above market rates for similar supplies and services; or
(2)
The time at which the needed supplies and services would be delivered does not meet the entity's needs.
Regulation .05 Coordination.LinkCopy Citation
The Pricing and Selection Committee for Preferred Providers shall meet at least annually, at the call of the Secretary of General Services, in order to:
A.
Review the status of State procurement under this chapter;
B.
Resolve any disputes among the selling entities, including disputes relating to pricing, pricing mechanisms, procurement priorities, and procurement procedures; and
C.
Develop recommendations to improve the procedures set forth in this chapter.
Regulation .06 Responsibilities of Selling Entities.LinkCopy Citation
Each selling entity shall:
A.
Annually, or more frequently if required, transmit to the Pricing and Selection Committee for Preferred Providers, in the form and by the date prescribed by the Pricing and Selection Committee for Preferred Providers, a complete listing of services and supplies the selling entity reasonably will be able to provide for State procurement during the 12-month period following scheduled publication of the master list, together with the suggested fair market prices for each service or supply;
B.
Consult periodically with the procurement agencies and, as appropriate, with the Secretary of General Services, or designee, to assist in the establishment of reasonable and uniform standards, including those governing quantity, quality, style, design, and delivery of services and supplies pursuant to this chapter;
C.
Within 5 working days of receipt of an inquiry from a procurement agency, notify the procurement agency and the Secretary of General Services or designee if the requested service or supply can or cannot be provided in accordance with the procurement agency's specifications within the time specified in the solicitation;
D.
Promptly notify the Secretary of General Services or designee if any service or supply included in the master list shall become unavailable;
E.
Immediately notify the Secretary of General Services or designee of any unresolved dispute with a procurement agency and request its resolution by the Secretary or designee.
F.
Within 90 days after the end of each fiscal year, a preferred provider awarded a contract in accordance with State Finance and Procurement Article, §14–103, Annotated Code of Maryland, shall report to the Department of General Services the information listed in subsections (1) and (2) of this section.
(1)
For the preceding fiscal year, the report shall state the total number of full–time equivalents for individuals with disabilities who contributed to the work of the contracts.
(2)
For the preceding fiscal year, Maryland Correctional Enterprises shall report the length of time between each order and delivery of supplies and services.
Regulation .07 Responsibilities of Procurement Agencies.LinkCopy Citation
A.
General Purchasing Requirements.
(1)
Except as provided in §B of this regulation, each procurement agency shall procure available supplies and services from a selling entity in accordance with this chapter.
(2)
If a selling entity's price for needed services or supplies exceeds the funds available for the procurement, the procurement agency shall attempt to negotiate an acceptable price with the selling entity.
(3)
To the extent practicable, a State unit or State aided or controlled entity shall include in a maintenance contract that has a component for housekeeping or janitorial services, a requirement that a prime contractor procure janitorial products from Blind Industries and Services of Maryland if the specified products are made, manufactured, remanufactured, or assembled by Blind Industries and Services of Maryland and are available.
B.
Exceptions. A procurement agency is not required to obtain a supply or service from a selling entity if:
(1)
The selling entity is unable to:
(a)
Furnish the needed supply or service within a reasonable time, or
(b)
Meet the procurement agency's reasonable specifications for the supply or service;
(2)
The Pricing and Selection Committee for Preferred Providers deems the selling entity’s price for the supply or service to exceed its fair market price;
(3)
The cost of procuring a supply or service from a selling entity in accordance with the procurement agency's specifications as approved by the appropriate control authority would exceed the budgetary allowance for the procurement;
(4)
The procurement is an emergency procurement under COMAR 21.05.06; or
(5)
The needed supply or service is not included in the master list.
C.
Supplies and Services.
(1)
Regardless of quantity needed, a procurement agency shall procure from a selling entity its requirements for supplies and services included in the master list unless exempted under §B of this regulation.
(2)
If a supply or service is listed as available from more than one selling entity and no ordering priority is otherwise specified in the master list, the procurement agency shall, subject to §C(3) of this regulation, obtain that supply or service from a selling entity in accordance with the following order of priority:
(a)
Maryland Correctional Enterprises;
(b)
Blind Industries and Services of Maryland;
(c)
The Employment Works Program.
(3)
A selling entity that is unable to furnish a supply or perform a service within the time required by, or in accordance with the reasonable specifications of, a procurement agency will be deemed to have relinquished its priority under §C(2) of this regulation for that procurement to the selling entity next in order of priority.
(4)
The procurement agency shall document actions taken under §C(3) of this regulation.
D.
Estimates of Purchases. A procurement agency shall notify at least annually the Pricing and Selection Committee for Preferred Providers of the procurement agency’s forecast of recurring purchases during the next fiscal year of those supplies and services included in the master list.
E.
Unless bids or offers are needed to establish the fair market price for a supply or service, a procurement agency shall first survey in the order set forth in §C(2) or D(2) of this regulation, as appropriate, the interests of the selling entities in providing the needed supply or service before issuing a solicitation for the procurement.
F.
Disputes. A procurement agency shall promptly notify the Secretary of General Services or designee of any dispute with a selling entity concerning supplies or services.
Regulation .08 Minority Business Status.LinkCopy Citation
In calculating compliance with the certified Minority Business Enterprise goals under COMAR 21.11.03 and for reporting purposes under COMAR 21.11.03.17, a procurement agency may not include in its MBE procurements the annual dollar value of contracts with the following:
A.
A preferred provider as defined in State Finance and Procurement Article, §14-101(d), Annotated Code of Maryland;
B.
A nonprofit entity in accordance with requirements mandated by State or federal law; or
C.
Providers of family and individual support services, community residential services, resource coordination services, behavioral support services, vocational and day services, and respite services, as those terms are defined in regulations adopted by the Maryland Department of Health.
Regulation .09 Small Business.LinkCopy Citation
The selling entities do not qualify for small business procurement programs under COMAR 21.11.01.
Chapter annotations
Authority: Correctional Services Article, §3-515; State Finance and Procurement Article, §§12-101 and 14-101—14-108; Annotated Code of Maryland;
Ch. 415, Acts of 2015; Ch. 313, Acts of 2016
Ch. 415, Acts of 2015; Ch. 313, Acts of 2016
History: Regulation .01B amended effective March 8, 1999 (26:5 Md. R. 394); March 13, 2006 (33:5 Md. R. 523); February 23, 2009 (36:4 Md. R. 355); April 28, 2014 (41:8 Md. R. 473); March 11, 2019 (46:5 Md. R. 310); September 18, 2023 (50:18 Md. R. 800)
History: Regulation .02B amended effective February 23, 2009 (36:4 Md. R. 355)
History: Regulation .02F adopted effective January 2, 1995 (21:26 Md. R. 2192); September 18, 2023 (50:18 Md. R. 800)
History: Regulation .02F amended effective December 25, 2000 (27:25 Md. R. 2284); February 23, 2009 (36:4 Md. R. 355)
History: Regulation .03 amended effective September 18, 2023 (50:18 Md. R. 800)
History: Regulation .04 amended effective March 8, 1999 (26:5 Md. R. 394); March 13, 2006 (33:5 Md. R. 523); March 11, 2019 (46:5 Md. R. 310); September 18, 2023 (50:18 Md. R. 800)
History: Regulation .04C amended effective February 23, 2009 (36:4 Md. R. 355); April 28, 2014 (41:8 Md. R. 473)
History: Regulation .04 Q, R amended effective March 3, 2025 (52:4 Md. R. 221)
History: Regulation .04S adopted effective March 3, 2025 (52:4 Md. R. 221)
History: Regulation .05 amended effective March 8, 1999 (26:5 Md. R. 394); September 18, 2023 (50:18 Md. R. 800)
History: Regulation .06 amended effective March 8, 1999 (26:5 Md. R. 394)
History: Regulation .06A amended effective September 18, 2023 (50:18 Md. R. 800)
History: Regulation .06F adopted effective March 3, 2025 (52:4 Md. R. 221)
History: Regulation .07 amended effective March 8, 1999 (26:5 Md. R. 394); March 13, 2006 (33:5 Md. R. 523)
History: Regulation .07A amended effective April 28, 2014 (41:8 Md. R. 473); June 29, 2020 (47:13 Md. R. 643)
History: Regulation .07B amended effective September 18, 2023 (50:18 Md. R. 800)
History: Regulation .07C amended effective February 23, 2009 (36:4 Md. R. 355); March 11, 2019 (46:5 Md. R. 310)
History: Regulation .07D amended effective September 18, 2023 (50:18 Md. R. 800)
History: Regulation .08 amended effective February 23, 2009 (36:4 Md. R. 355)
History: Regulation .08A, B amended effective March 3, 2025 (52:4 Md. R. 221)
History: Regulation .08C adopted effective March 3, 2025 (52:4 Md. R. 221)
History: Regulation .08B amended effective March 13, 2006 (33:5 Md. R. 523)
History: Regulation .09 amended effective February 23, 2009 (36:4 Md. R. 355)