Agenda Item 7
December 2, 2014
Public Hearing
MEMORANDUM
November 26,2014
TO:
FROM:
County Council
Josh Hamlin, Legislative
Attorne~
11
l
SUBJECT:
Public Hearing:
Bill 49-14, Contracts and Procurement - Formal Solicitation ­
Reciprocal Local Preference
Bill 49-14, Contracts and Procurement - Formal Solicitation - Reciprocal Local
Preference, sponsored by Council President Rice, was introduced on October 21, 2014. A
Government Operations and Fiscal Policy Committee worksession will be scheduled at a later
date.
Bill 49-14 would establish a reciprocal preference for a County-based bidder in certain
contracts awarded by competitive sealed bidding. Specifically, the Bill would require the
Director of the Department of General Services to grant a preference to a responsible and
responsive County-based bidder if the lowest responsible and responsive bidder is from another
jurisdiction that grants a preference to its resident bidders. The reciprocal preference would be
identical to the preference granted by the other jurisdiction to its resident bidders.
Background
Earlier this year, the Council enacted Bill 13-14, which defined "County-based bidder or
offeror," and codified a preference for a County-based bidder or offeror in the event ofa tie bid
or ranking in a contract awarded by formal solicitation. This Bill addresses the situation where a
County-based bidder is seeking a County contract awarded by competitive sealed bidding, and
competing against bidders from other jurisdictions that offer specific preferences to their resident
bidders. The Bill would require that a County-based bidder be given the same preference that
such bidders receive in their home jurisdiction. For example, if the low bidder is from a
jurisdiction that grants a 10 percent preference to its own resident bidders, the Director would
add 10 percent to that bidder's price for the purpose of evaluating the bid against a County-based
bidder.
This packet contains:
Bi1l49-14
Legislative Request Report
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Bill No.
49-14
Concerning: Contracts and Procurement
- Formal Solicitation - Reciprocal
Local Preference
Revised: October 13, 2014
Draft No.1
Introduced:
October 21. 2014
Expires:
April
21, 2016
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ __
Sunset Date: ___- - - - - -
Ch. _ _,
Laws
of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President Rice
AN
ACT to:
(1)
(2)
(3)
establish a reciprocal preference for a County-based bidder
in
certain contracts
awarded by competitive sealed bidding;
define preference; and
generally amend the law governing the award ofcontracts by formal solicitation.
By amending
Montgomery County Code
Chapter lIB, Contracts and Procurement
Sections IIB-l and I1B-9
Boldface
Undertining
[Single boldface brackets]
Double undertining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unqlfected by bill.
The County Council for Montgomery County, Maryland approves the following Act;
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BILL
No.
49-14
1
Sec.
I.
Sections
IIB-I
and
IIB-9
are amended as follows:
2
3
4
lIB-I.
Definitions.
Unless the context indicates otherwise, the following tenns have the following
meanmgs:
County-based bidder or offoror
means a person that has its principal place of
business in Montgomery County, as further defined by Executive regulation
adopted under Section IlB-8
5
6
7
8
9
*
ill
ill
ill
~
percentage
*
*
Preference
means
~
policy that favors one bidder over another and includes:
preference;
10
11
an employee residency requirement; or
any other law, policy, or practice that favors
noresident.
~
12
13
14
resident over
~
*
(a)
*
*
15
16
17
18
19
IIB-9.
Formal solicitation - competitive sealed bidding.
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.
*
*
*
20
21
ill
Reciprocal preference for County-based bidder.
ill
In making an award under this Section, the Director must give
~
preference to
if:
(A)
~
~
22
23
24
25
responsible and responsive County-based bidder
non County-based bidder is the lowest responsible and
responsive bidder;
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BILL
No. 49-14
26
27
28
29
30
31
32
33
34
35
@
the non COWlty-based bidder has its principal place of
business in
£!
state or political subdivision that gives
£!
preference to its residents; and
©
£!
preference does not conflict with
£!
federal law or
~ ~
affecting the purchase or contract.
ill
A preference given Wlder this subsection must be identical to the
preference that the other state or political subdivision gives to its
residents.
Approved:
Craig
L.
Rice, President, County Council
36
Approved:
Date
37
Isiah Leggett, County Executive
38
This is a correct copy ofCouncil action.
Date
39
Linda M. Lauer, Clerk of the Council
Date
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LEGISLATIVE REQUEST REPORT
Bill 49-14
Contracts and Procurement
-
Formal Solicitation
-
Reciprocal Local Preference
DESCRIPTION:
Bill 49-14 would defme "preference" and would require that Director
give a preference to a responsible and responsive County-based
bidder if the lowest responsible and responsive bidder is from another
jurisdiction that grants a preference to its resident bidders. The
preference would be identical to the preference granted by the other
jurisdiction to its resident bidders.
The County wishes to support County-based businesses that are
seeking to do business with the County.
To establish a reciprocal preference for a County-based bidder in the
event that the lowest responsible and responsive bidder is from a
jurisdiction that grants a preference to its resident bidders.
Office of Procurement
To be requested.
To be requested.
To be requested.
To be researched.
Josh Hamlin, 240-777-7892
To be researched.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
Not applicable.
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