Bill No.  49-14

Concerning: Contracts and Procurement – Formal Solicitation – Reciprocal Local Preference

Revised: October 13, 2014      Draft No. 2

Introduced:      October 21, 2014

Enacted:         April 14, 2015

Executive:       April 22, 2015

Effective:        January 1, 2016

Sunset Date:  None

Ch.   21 , Laws of Mont. Co.    2015

County Council

For Montgomery County, Maryland

By: Council President Rice and Councilmember Elrich

AN ACT to:

(1)        establish a reciprocal preference for a County-based bidder in certain contracts awarded by competitive sealed bidding;

(2)        define preference; and

(3)        generally amend the law governing the award of contracts by formal solicitation.

By amending

            Montgomery County Code

            Chapter 11B, Contracts and Procurement

            Sections 11B-1 and 11B-9

Boldface Heading or defined term.

Underlining Added to existing law by original bill.

[Single boldface brackets] Deleted from existing law by original bill.

Double underlining Added by amendment.

[[Double boldface brackets]] Deleted from existing law or the bill by amendment.

*   *   *                                                  Existing law unaffected by bill.

The County Council for Montgomery County, Maryland approves the following Act:

          Sec. 1.  Sections 11B-1 and 11B-9 are amended as follows:

11B-1. Definitions.

Unless the context indicates otherwise, the following terms have the following meanings:  

County-based bidder or offeror means a person that has its principal place of business in Montgomery County, as further defined by Executive regulation adopted under Section 11B-8

*        *        *

Preference means a policy that favors one bidder over another and includes:

(1)     a percentage preference;

(2)     an employee residency requirement; or

(3)     any other law, policy, or practice that favors a resident over a nonresident.

*        *        *

11B-9. Formal solicitation - competitive sealed bidding.

(a)     Conditions for use. Contracts must be awarded by competitive sealed bidding except as otherwise authorized in this Chapter or regulations.  Competitive sealed bidding is initiated by issuing an invitation for bids.

*        *        *

(j) Reciprocal preference for County-based bidder.  

(1)     In making an award under this Section, the Director must give a preference to a responsible and responsive County-based bidder if:

(A)    a non County-based bidder is the lowest responsible and responsive bidder;

(B)     the non County-based bidder has its principal place of business in a state or political subdivision that gives a preference to its residents; and

(C)     a preference does not conflict with a federal law or a grant affecting the purchase or contract.

(2)     A preference given under this subsection must be identical to the preference that the other state or political subdivision gives to its residents.

(3) A preference must not be given under this subsection if it would result in an award to a County-based bidder when:

(A) a non County-based bidder has submitted a lower responsible and responsive bid than any County-based bidder before the application of any reciprocal preference; and

(B) the non-County-based bidder has its principal place of business in a state or political subdivision that does not give a preference to its resident

Sec. 2. Effective Date. This Act takes effect on January 1, 2016.

Approved: