Local Business Preference Program (LBPP)
Overview
Read the press release on the Local Business Preference Program (LBPP).
Effective Date: 8/1/2020 Legislation: Bill 25-19
- The County Executive’s Expedited Bill 25-19, Local Business Preference, was unanimously approved by the County Council on June 23, 2020. Executive Regulations 13-20.
- The Local Business Preference Program (LBPP) is intended to bolster the County’s economic growth and support the creation and retention of employment opportunities within the County. LBPP is a local preference points program, this means that Montgomery County-based businesses will receive an extra 10% preference points on proposals. LBPP requires a 10% price preference for a local business bidding on an IFB or an evaluation factor worth 10% of the total points for a local business submitting a proposal under an RFP for a contract awarded by the County.
- Preference points do not apply to certain RFPs where State or Federal funding sources may prohibit it.
- Awards by discount or line item are not subject to the LBPP.
- The LBPP does not apply to LSBRP IFBs or RFPs
Do I Qualify?
Eligibility for the LBPP is determined by location.
The business must have its principal place of business in Montgomery County defined as follows:
- The business has its physical business location(s) only in Montgomery County; or
- The business has physical business locations both in and outside of the County, but the County-based location(s) accounts for over 50% of the business's total number of employees, or over 50% of the business's gross sales.
Ownership
Independently owned businesses only; brokers and subsidiary businesses are not eligible. A federal tax number or W-9 in the name of the business is required.
Preference Applied
IFB requirements and workflow:
Vendors applying for Local Business certification prior to the due date/time, must be certified prior to contract award.
IFB Case Scenario
| Vendor | Bid Price | LBPP 10% | $200K ceiling | Bid price for evaluation purposes only | Proposed Award* |
|---|---|---|---|---|---|
|
Non-local |
$2,850,000 |
|
|
$2,850,000 |
NO |
|
Local |
$3,000,000 |
$300,000 |
$200,000 |
$2,800,000 |
YES |
| Vendor | Bid Price | LBPP 10% | $200K ceiling | Bid price for evaluation purposes only | Proposed Award* |
|---|---|---|---|---|---|
|
Non-local |
$2,750,000 |
|
|
$2,750,000 |
YES |
|
Local |
$3,000,000 |
$300,000 |
$200,000 |
$2,800,000 |
NO |
| Vendor | Bid Price | LBPP 10% | $200K ceiling | Bid price for evaluation purposes only | Proposed Award* |
|---|---|---|---|---|---|
|
Non-local |
$1,500,000 |
|
|
$1,500,000 |
YES |
|
Local |
$1,800,000 |
$180,000 |
N/A |
$1,620,000 |
NO |
RFP requirements and workflow
Vendors: apply for Local Business certification prior to the due date/time, must be certified prior to contract award LBPP evaluation criterion example for RFPs:
|
2. EVALUATION CRITERIA |
POINTS |
|
|
a.Written Proposal Evaluation Criteria
The QSC will evaluate the written proposals based on the following criteria. |
|
|
|
1. |
Experience |
80 |
|
2. |
Price |
40 |
|
3. |
Local Business Preference |
15 |
|
4. |
MFD Participation |
15 |
|
|
Highest possible QSC score for written evaluation: |
150 |
|
b.Interview Evaluation Criteria
The QSC will evaluate the interviews based on the following criteria. |
|
|
|
1. |
Team’s explanation of methodology solution |
60 |
|
2. |
Price |
20 |
|
3. |
Local Business Preference |
10 |
|
4. |
MFD Participation |
10 |
|
|
Highest possible QSC score for interview evaluation: |
100 |
Questions and Answers
What does Bill 25-19 do for Montgomery County Local Businesses?
Bill 25-19 is a local preference points program. This means that Montgomery County-based businesses will receive an extra 10% preference points on proposals
Bill 25-19 would require a 10% price preference for a local business bidding on an IFB or an evaluation factor worth 10% of the total points for a local business submitting a proposal under an RFP for a contract awarded by the County.
Competitive sealed bids. Except as noted below, the Director must adjust the bid of a Local Business who submits a bid in response to an Invitation for Bid issued under Section 11B-9:
By reducing the bid price(s) by a factor of 10%, but not to exceed $200,000, for the purposes of evaluation and award only.
What qualifies as a Montgomery County/local business?
Principal Place of Business in the County: A regular course of business commerce in the County by a business, along with any of the following:
- The business has its physical business location(s) only in the County; or
- The business has physical business locations both in and outside of the County, and the County-based location(s) account for over 50% of the business’s total number of employees, or over 50% of the business’s gross sales.
Is this a part of the Local Small Business Reserve Program (LSBRP)?
No. The LSBRP is a separate program. Businesses do NOT need to be a small business to register in the Local Business Preference Program. However, if you are currently certified as an LSBRP vendor you automatically meet LBPP requirements.
I am already an LSBRP-certified business. How is this program different?
The Local Small Business Reserve (LSBRP) is a program for local small businesses. Certain contracts are reserved specifically for these local small businesses. The Local Business Preference Program (LBPP) allows for preference points on contracts OUTSIDE of the LSBRP.
How do I enroll in the LBPP and register as a vendor?
Visit https://azex32.montgomerycountymd.gov/cvrs/ and follow the prompts to register or update your vendor profile. You will be given the option to enroll in the LBPP if you meet the criteria.
Do I need to become LBPP certified before I can receive preference points?
Yes, preference points must be applied only to a business: (1) that has a valid local business certification when the business submits a bid or proposal; or (2) who has applied for local business certification before the time to submit a bid or proposal has passed.
What contracts are subject to Bill 25-19?
Bill 25-19 applies to RFPs and IFBs that are issued after August 1, 2020.
Does this legislation change any current contracts?
No, this bill applies to solicitations released after August 1, 2020.
Contact Information
Michael Brown, Program Manager
Local Business Program Manager
27 Courthouse Square, Ste 330
Rockville, MD 20850
Phone: 240-777-9913
Email: [email protected]