Bill No.
61-14
Concerning: Contracts and Procurement
- Local Business Subcontracting
Program
Revised: May
2. 2016
Draft No.
4
Introduced:
November
25. 2014
Enacted:
May
17. 2016
Executive:
May
25. 2016
Effective:
Januarv
1. 2017
Sunset Date: --=-:.No=n=e'-------
Ch.
_1Q_,
Laws of Mont. Co.
2016
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Council President at the Request of the County Executive
AN ACT
to:
(1)
(2)
(3)
(4)
increase the participation of local businesses in certain large County procurement
contracts;
establish a subcontracting goal for local businesses in certain large County
procurement contracts;
establish a Local Business Subcontracting Program for certain County procurement
contracts; and
generally amend the law governing County procurement.
By adding
Montgomery County Code
Chapter 1 lB, Contracts and Procurement
Article XVII. Local Business Subcontracting Program
Sections 1 lB-78 through 1 lB-83
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[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 unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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BILL
No.
S1-14
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Sec.
1.
Sections llB-78, llB-79, llB-80, llB-81, llB-82, and llB-83
ill
added
~
follows:
Article XVII. Local Business Subcontracting Program
llB-78. Definitions.
In this Section, the following words have the meanings indicated:
Broker
means
~
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person that provides goods or services (other than real estate,
investment, or insurance sales)
on~
pass-through basis as follows:
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ill
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supplier of goods who:
does not own, operate, or maintain
~
(A)
place of business in
which goods of the general character required under the
contract are kept in stock in the. regular course of
business;
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14
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.{ID
does not regularly assume physical custody or possession
of goods of comparable character to those offered to the
County, or
.(Q
exclusively acts as
the County; or
~
middleman in the sale of goods to
ru
~
supplier of services who does not regularly maintain the
capacity, training,
experience, and applicable
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capability,
regulatory licensing to directly perform the principal tasks of
~
contract with the County and must,provide the principal tasks
through~
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subcontract
with~
third party.
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Contract Award
means the delivery hy the County
of~
fully executed contract
to an offeror.
High Dollar Value Contract
means an initial Contract Award that is estimated
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26
to exceed $10 million.
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BILL
No. 61-14
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Local Business
means
£!
for-profit business other than
f!
broker that has its
principal place of business in the County, as further defined
by
Executive
Regulation, and that is certified
by
the Director as
£!
Local Business under the
provisions of this Article.
Local Business Program Manager
means
£!
person designated
by
the Director
to administer and monitor the Local Business Subcontracting Program.
Local Business Subcontractor
means
£!
Local Business that enters into
f!
contract with
f!
Contractor to perform work related to
£!
High Dollar Value
Contract for that Contractor.
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llB-79.
Goals; applicability.
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Local Business Subcontracting Goals.
This subsection establishes the
following Local Small Business subcontracting goals:
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ill
ill
at least 10% of the contract dollars awarded for each High Dollar
Value Contract should be awarded to
£!
Local Business; and
at least 10% of the total dollar value of all High Dollar Value
Contracts in the aggregate should be awarded to Local
Businesses.
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.(hl
Applicability.
The Local Business Subcontracting Program goals @illy
to each High Dollar Value Contract except:
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ill
ill
ill
grants or appropriations under Section 1 lB-14
.{fil
ill
and
fil
cooperative procurements under Section 1 lB-40;
public entity contracts under Section l lB-41;
emergency procurements under Section 1 lB-16; or
bridge contracts, under Section 1 lB-42, if the Director
determines in writing that compliance with this Article is ·
impractical or is outweighed
by
the benefits to the County of
entering into
£!
bridge contract.
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BJ
ill
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llB-80. Procedures.
.{fil
The Director, at the time of g solicitation, must publish notification to
businesses when the solicitation may result in g High Dollar Value
Contract.
.Qi)
The Director must encourage Local Business participation in applicable
High Dollar Value Contract opportunities by:
ill
adding g provision in g solicitation for g High Dollar Value
Contract that requires g Contractor to exercise good faith in its
effort to subcontract 10% of the dollar value of the contract to
one or more Local Businesses;
ill
requiring g Contractor on g High Dollar Value Contract to:
(A)
submit g Local Business subcontracting plan describing
how the Contractor proposes to meet the 10% Local
Business Subcontracting Program goal;
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ill}
identify, before initial Contract Award, each Local
Business with which the Contractor intends to subcontract
and the projected dollar amount of each subcontract or
percentage of the contract dollar amount allocated to each
subcontract; and
.(Q
promptly notify the Using Department of any change in the
information required under (A) and
ill}
of this subsection
during the contract term.
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ill
W
requiring the Contractor to comply with Local Business
Subcontracting Program goals throughout the contract term.
A Contractor's failure to satisfy the requirements of the Local Business
Subcontracting Program, including g failure to submit documentation
required by the Director to show compliance, may constitute
~
breach of
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the contract for which the County may withhold payment or impose
liquidated damages, in addition to any other remedies available to the
County.
@
The Director may waive all or part of the Local Business subcontracting
.requirements for
~ sp~cific
contract under appropriate circumstances as
established by Executive Regulation.
W
The Director may require each Contractor and Local Business that
participates in the Local Business Subcontracting Program to provide
information concerning utilization by the Contractor of Local
Businesses in
~
High Dollar Value Contract.
llB-81.
Regulations.
The County Executive must adopt
this Article. The regulation must include:
~
regulation, by Method
b
to implement
W
monitoring procedures to assist
~
contract administrator and the Local
~
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Business Program Manager to determine compliance by
with the Local Business Subcontracting Program;
Contractor
ili}
certification requirements for
under this Article; and
~
business to qualify as
~
Local Business
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99
100
.(£}
procedures to certify or decertify
~
Local Business.
llB-82.
No Standing to Challenge Contract Award.
This Article does not give any person,
including~
Local
of~
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Business, any right or
status, including standing, to challenge the award
contract or subcontract arising
from the County procurement system. The provisions of this Article are enforceable
only through the oversight function of the Chief Administrative Officer or his
designee.
llB-83.
Penalty.
107
W
A person must not:
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ill
fraudulently obtain or retain, attempt to obtain or retain, or aid
another person in fraudulently obtaining or retaining, or
attempting to obtain or retain, certification
for the purpose of this Article;
as~
Local Business
ill
willfully make
~
false statement to
~
County official or employee
~
for the purpose of influencing the certification of an entity as
Local Business; or
ill
fraudulently obtain, attempt to obtain, or aid another person in
fraudulently obtaining, or attempting to obtain, public monies to
which the person is not entitled under this Article.
®
A
violation of this Article:
ill
ill
is~
class
A violation; and
may disqualify the violator from doing business with the County
for
!!J2
to
2
years.
Sec. 2. Effective Date
This Act takes effect on [[July 1, 2015]] January 1. 2017 and applies to any
High Dollar Value Contract arising from a solicitation issued on or after [[July 1,
2015]] January 1. 2017.
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_·__ J
BILL
No. 61-14
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Approved:
17.
;J-016
Nancy Floreen, Pre ident, County Council
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Approved:
This is a correct copy ofCouncil action.
13!
132
Linda M. Lauer, Clerk of the Council
~
lh.
~
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