These regulations prescribe the policies and procedures that govern the activities of the Maryland Export Credit Program. Under the Maryland Export Credit Program the State, through action of the Board of Public Works, may assign to business enterprises offset credits accrued by the State. The basic objective of the Program is to encourage the exportation by business enterprises located in Maryland of goods and services to foreign purchasers by assigning to those business enterprises offset credits accrued by the State. This objective is to be accomplished in a way that: Is accepted by the foreign jurisdiction's offset authority; Maximizes economic and social benefits to the State proportionate to the amount of offset credits available to the State; and Imposes minimal costs to the State. In this chapter, the following terms have the meanings indicated. Terms Defined. “Act” means State Finance and Procurement Article, §10-305, Annotated Code of Maryland. “Applicant” means a business enterprise applying for assignment of offset credits from the Program. “Application” means an application for assignment of offset credits submitted to the Program by an applicant. “Assignment of offset credits” means that a business enterprise that receives offset credits pursuant to this chapter receives the right to negotiate with the foreign offset authority the acceptability of the transfer of the offset credits from the State to the business enterprise. “Board” means the Board of Public Works. “Business enterprise” means a business entity that: Maintains or intends to locate its principal place of business in the State; Is in good standing; and Is qualified to do business in the State. “Department” means the Department of Business and Economic Development. “Director” means the Director of the Program, as designated by the Secretary. “Foreign” means non-United States. “Foreign contract” means a contract or proposed contract for which a business enterprise intends to bid, pursuant to which a business enterprise sells goods or services to a foreign purchaser in a foreign jurisdiction that requires offsets as a condition to international trade. “Foreign offset authority” means the organizational unit within a foreign jurisdiction charged with administration of the jurisdiction's offset credit requirements. “Offset” means the international trade practice by which a purchaser in a foreign jurisdiction of goods or services from a United States contractor may require, among other things, that a specified monetary amount of unrelated goods or services be purchased from domestic sources of that foreign jurisdiction. “Offset credits” means those credits accrued by the State in any manner, including: Through direct procurement by the State of goods or services from: Foreign suppliers operating from jurisdictions that impose offset requirements as a condition to international trade, United States manufacturers incorporating into their finished products components made in foreign jurisdictions that impose offset requirements, or United States distributors of those final products or the goods or services of foreign suppliers; and Through indirect procurement by the State of the types of products, goods, or services described in §B(13)(a) of this regulation in the course of performance of contracts, especially construction contracts, between the State and contractors. “Program” means the organizational unit within the Department that administers the assignment of offset credits on behalf of the State. “Qualified applicant” means an applicant that submitted an application initially classified by the Director as reasonably susceptible of being selected for award. “Secretary” means the Secretary of Business and Economic Development, or the Secretary's designee. The Department shall maintain records of purchases by the State resulting in offset credits to the State. The records specified in §A of this regulation shall include the following information: Name and address of the company awarded the contract; The date of the contract; The purchase order number assigned to the contract; The dollar amount of the contract; Whether the goods or services that are the subject of the contract are from a foreign supplier, and if so, the identity of the foreign country and the name, address, and contact person for the supplier, and the estimated dollar value of the goods or services; or Whether any goods that are the subject of the contract contain foreign components, and if so, the identity of the foreign country, the name, address, and contact person for the foreign manufacturer, and the estimated dollar value of the foreign components. A business enterprise that has entered into or is bidding on a foreign contract is eligible to apply for assignment of offset credits. Offset credits assigned to a business enterprise may be used only to satisfy offset requirements in foreign contracts approved by the Board of Public Works or the Secretary. From time to time the State shall advertise in the Maryland Register the availability of offset credits with an estimated value of $10,000 or greater and, at the Director's discretion, offset credits with an estimated value of less than $10,000. The Director shall maintain a list of business enterprises that have expressed an interest in applying for assignment of offset credits relating to a particular foreign country, and shall inform those business enterprises of the availability of offset credits relating to that country. The Director may, in addition, advertise the availability of offset credits to business enterprises through any other means. The consideration required for the assignment of offset credits to a business enterprise shall be as determined by the Board upon recommendation of the Secretary. Consideration may consist of benefits derived by the State from creation of new contract opportunities that create new jobs and new capital investment in the State. Consideration payable to the State shall be credited to the State's General Fund. The preferred method for the award of offset credits is by competitive applications. The Program's request for applications shall include: Information concerning application submission requirements, including the date, time, and place for the receipt of applications; The evaluation factors and an indication of the relative importance of each evaluation factor, including consideration; A statement that discussions may be conducted with those applicants that submit applications initially judged by the Director to be reasonably susceptible of being selected for award; and A statement whether multiple or alternate applications may be submitted and their treatments. To apply for assignment of offset credits under the Program, an applicant shall submit to the Director an application containing the following information: The name, address, and telephone number of the applicant and the name and title of the applicant's authorized representative for the application process; Whether the applicant is seeking the offset credits to carry out an existing foreign contract as either a prime contractor or subcontractor or intends to bid on a foreign contract; If the applicant is or intends to be a subcontractor, the name, address, and telephone number of the prime contractor, and the name of a contact person for the prime contractor; The name of the foreign country to which the applicant intends to export its goods or services and the name, address, and telephone number of the purchaser in that country, and of the contact person for offset approval authority; The date that the applicant entered into or anticipates entering into the foreign contract; The estimated total value of the foreign contract during the term of the foreign contract; The amount of the offset credits requested by the applicant; The estimated number of jobs to be created or retained in the State as a result of the performance of the foreign contract during the term of the foreign contract, and the estimated value of the salaries and wages to be expended in the State; The estimated value of the capital investment in the State to be generated by the foreign contract; The estimated value of contracts to be awarded to subcontractors in the State, and to suppliers of goods and services in the State, resulting from the foreign contract; Any cash payment the applicant will make to the State in consideration of assignment of the offset credits; Any other activities of benefit to the State and its citizens that the applicant will carry out if assigned offset credits; and Whether the applicant considers any of the information provided in the application to be confidential commercial or confidential financial information, pursuant to State Government Article, §10-617, Annotated Code of Maryland. Evaluation. An evaluation shall be based on the consideration obtained by the State in accordance with Regulation .08 of this chapter. Numerical rating systems may be used. Initial evaluations may be conducted and recommendation for award made by an evaluation committee. Classification of Applications. When more than one application has been received, the Director may initially classify an application as: Reasonably susceptible of being selected for award; or Not reasonably susceptible of being selected for award. Applicants whose applications are judged by the Director as not reasonably susceptible of being selected for award shall be so notified. Discussions. Discussions and negotiations may be held with all qualified applicants to: Assure full understanding of the Program's requirements and of the qualified applicant's application and abilities to perform; and Obtain the best consideration for the State. If no applications are received in response to the request for applications, the Director may solicit applications directly without republication of notice. Best and Final Offers. When in the best interest of the State, the Director may permit a qualified applicant to revise its initial application by submitting a best and final offer. The Director may require more than one series of submissions of best and final offers. If more than one submission of best and final offers is requested, an applicant's immediate previous application shall be construed as its best and final offer unless the applicant submits a timely notice of withdrawal or another best and final offer. Preliminary Determination. Upon completion of all discussions and negotiations, the Director shall prepare a written preliminary determination ranking the top three applications received from the qualified applicants, and recommending award of the offset credits to the qualified applicant whose application is determined to be the most advantageous to the State. The Director may recommend dividing the available offset credits between more than one applicant. The Director shall promptly notify all qualified applicants of the preliminary determination. If the Director makes a preliminary determination to recommend an award of offset credits, the Director may condition the recommendation upon an applicant's providing certain documentation or related requirements, which may include: Execution by an applicant of an assignment agreement; and Copies of the: Foreign contract, Solicitation, and Bid or proposal relating to the foreign contract. Approval by the Secretary. The Director may recommend to the Secretary approval of the assignment and forward to the Secretary a copy of the assignment agreement executed by the business enterprise. The Secretary may approve the assignment as recommended by the Director, or conditionally upon modification of its terms. Final Approval by the Board of Public Works. The Board, in its discretion, may approve the assignment as recommended by the Secretary, or conditionally upon modification of its terms. Upon recommendation of the assignment by the Secretary and upon any modification of the terms of the assignment as may be required by the Board, the Board shall execute or authorize the Secretary to execute, on behalf of the State, the assignment agreement and any other documents evidencing the assignment. Reporting Requirements. The business enterprise shall send a written report to the Director indicating the actions taken by the foreign offset authority, including the dollar amount of offset credits accepted by the foreign offset authority. An applicant shall comply with all applicable federal, State, and local laws regarding discrimination and equal opportunity, including the provisions of the Governor's Code of Fair Employment Practices, COMAR 01.01.1995.19. The Department shall submit by June 30 of each year an annual report to the Governor and Board of Public Works describing the Program's achievements in the immediately preceding year. The Director, with the approval of the Secretary, may waive or vary particular provisions of these regulations to the extent that the waiver is not inconsistent with the State Finance and Procurement Article, §10-305, Annotated Code of Maryland. A waiver is subject to the Board's prior approval. Economic Development Article, §2-108 and Title 3, Subtitle 3; State Finance and Procurement Article, §10-305; Annotated Code of Maryland Effective date: October 12, 1992 (19:20 Md. R. 1819)