Agenda Item 5B
&
6
September 15,2015
Action
MEMORANDUM
September 11, 2015
TO:
FROM:
County Council
Robert H. Drummer, Senior Legislative Attorney
SUBJECT:
Action: Bill 23-15, Contracts
Local
Reserve Program
Amendments
Executive Regulation 6-15, Local Small Business Reserve Program
Government Operations and Fiscal Policy Committee recommendation (2-0, Riemer
absent): approve the Bill and the regulation without amendment.
Bill 23-15, Contracts - Local Small Business Reserve Program - Amendments, sponsored
by Lead Sponsor Council President at the request ofthe County Executive, was introduced on May
21. A public hearing was held on June 16 and a Government Operations and Fiscal Policy
Committee worksession was held on July 23 on the Bill and the Regulation.
The Bill would:
(l)
modify the types ofcontracts subject to the Local Small Business Reserve Program;
(2)
amend the definition of a local small business under the Local Small Business
Reserve Program; and
(3)
change the reporting dates.
Background
The Local Small Business Reserve Program (LSBRP) was established by Bill 23-04,
Contracts and Procurement - Local Small Business Reserve Program, effective January 1,2006.
The legislative intent of the program was to enhance the competitiveness of County-based small
businesses by creating a separate defmed market in which small businesses will compete against
each other, not against larger firms, for County contracts; broaden the pool of local small vendors
doing business with the County; and encourage the County's economic growth by enhancing the.
business climate for local small businesses.
Bill 23-15 would require that a local small business have its principal place of business in
the County instead of requiring the business to generate a significant amount of economic activity
in the County in order to participate in the program. This change would codify existing regulations
defining "generating a significant amount of economic activity in the County." The Bill. would
also codify existing practice by eliminating a contract awarded through an emergency
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procurement, a bridge contract, or a cooperative procurement from the types of contracts eligible
for the LSBRP. Finally, the Bill would change the annual reporting date from September 30 to
October 30.
Public Hearing
The lone speaker, Cherri Branson, Director of Procurement, representing the Executive,
supported the Bill. See ©11-12.
July 23 GO Committee Worksession
Cherri Branson, Director of Procurement, Pam Jones, Procurement, and Grace Denno,
Procurement, represented the Executive Branch. The Committee discussed both the changes that
would be made to the LSBRP by the Bill and the regulation. The Committee (2-0, Riemer absent)
approved both the Bill and the regulation without amendment.
Discussionllssues
1.
Does requiring a local business to have its principal place of business in the County change
existing practice?
The Bill would change the defInition of a local business from a business that "generates a
signifIcant amount of economic activity in the County" to a business that "has its principal place
of business in the County." The current Procurement Regulation, COMCOR §11B.65.01.02
defInes a business that generates a signifIcant amount of economic activity in the County as:
(m)
Significant Amount
0/
Economic Activity in the County
-
A regular course
of business commerce in the County by a business, along with any of the
following:
(i)
The business has its physical business location(s) only in the
County; or
(a)
The business has physical business locations both in and outside of
the County, and the County-based location(s) accountfor over 50%
of the business's total number of employees, or over 50% of the
business's gross sales.
A
defInition of "principal place of business" was recently added to the procurement regulations
by ER 2-15. Under the new defInition, a business has its principal place of business in the County
if:
(1)
(2)
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.
2
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Therefore, this change in law does not change how the current law has been implemented
by regulation.
2. Does removing bridge contracts and cooperating agreements from the LSBRP change
current practice?
The Director may enter into a bridge contract with a vendor when the vendor has an existing
contract with another public entity for the same goods or services that was obtained through
competition. A cooperative agreement involves combining the requirements oftwo or more public
entities to obtain the benefits of volume purchases, reduction in administrative expenses, or some
other public purpose. Neither of these types of contracts would be appropriate for inclusion in the
LSBRP, and according to Procurement, they have not been. Therefore, this change in law codifies
existing practice as implemented by regulation.
3. Should the Bill be enacted?
The remaining change made by the Bill would extend the time for each Department to send
the annual report on the LSBRP to the Director of Procurement from September 30 to October 30.
It
does not change the November 30 date for the annual report from the Director of Procurement
to the Council. Committee recommendation (2·0, Riemer absent): approve the Bill as
introduced.
Executive Regulation 6·15, Local Small Business Reserve Program
ER 6-15 would make a substantive change in the LSBRP by increasing the size criteria for
service vendors from a business with 50 or fewer employees to 100 or fewer employees or a
business with average gross sales of $5 million or less in the most recently completed 3 years to
$10 million or less. Procurement reports that this change would make an additional 806 County
businesses eligible for the program. Of those 806 County businesses, 61 % are in the retail trade
or provide professional, scientific, technical, education, arts, entertainment, and recreation
services. The Department of Finance estimated that the Bill would have a positive impact on
employment, personal income, and business revenues for those companies that are now eligible to
compete for contracts in the program. However, Finance could not estimate the impact. See the
Economic Impact Statement for the Bill at ©9-10. Of course, the increased competition for
contracts under the program could also have a negative impact on smaller businesses who will
have to compete with the newly eligible businesses.
This change in the criteria for a small business in the LSBRP is consistent with the current
criteria for a small business under the Maryland Small Business Reserve Program. See COMAR
§
21.11.01.06. Committee recommendation (2-0, Riemer absent): approve ER 6-15.
3
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This packet contains:
Bill 23-15
Legislative Request Report
Memo from County Executive
Fiscal and Economic Impact statement
Testimony ofCherri Branson
Memo from Executive on Executive Regulation 6-15
Fiscal Impact Statement for ER 6-15
ER6-15
ER 6-15, Clean Copy
Proposed Resolution to Approve ER 6-15
F:\LAW\BILLS\1523 Local Small Business Reserve Program\Action Memo.Docx
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Bill No.
23-15
Conceming: Contracts -
Local
Small
Business
Reserve
Program
Amendments
Revised: May 19. 2015 Draft No.l
Introduced:
May 21,2015
Expires:
November 21.2016
Enacted: _ _ _ _ _ _ _ _ __
Execuwe: _ _ _ _ _ _ _ _ __
Effective: _--:-::--_ _ _ _ __
Sunset Date: ....:N!.!;o:::!:n!7e-:--:--::::-_ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Council President at the request of the County Executive
AN
ACT to:
(1)
(2)
(3)
(4)
to modify the types of contracts subject to the Local Small Business Reserve
Program;
amend the definition of a local small business under the Local Small Business
Reserve Program;
change the reporting dates; and
generally amend the law regarding the Local Small Business Reserve Program.
By amending
Montgomery County Code
Chapter ItB, Contracts and Procurement
Sections
11B-65, llB-66, 11B-67,
and
11B-69
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
'It
'It
'It
Heading or defined term.
Addedto 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 thefollowing Act;
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BILL
No. 23-15
1
2
Sec. 1. Sections IIB-65, IIB-66, IIB-67, and I1B-69 are amended as
follows:
Article XV. Local Small Business Reserve Program
IIB-65. Definitions.
In
this Article the following words have the meanings indicated.
3
4
5
6
7
(a)
Local Small Business
means a for-profit business, other than a broker,
that:
(1)
[generates a significant amount of economic activity] has its
principal place of business in the County;
(2) is independently owned and operated;
(3) is not a subsidiary ofanother business; and
(4) meets criteria, size limits, and gross sales amounts established by
method 2 regulations.
8
9
10
11
12
13
14
15
16
*
*
(c)
include:
*
*
*
*
IIB-66. Local Small Business Reserve Program.
17
18
19
The total dollar value of procurements by a using department does not
*
(5)
*
*
20
21
22
23
(4) a public entity [or emergency] procurement;
an emergency procurement;
~
~
®
ill
bridge contract;
cooperative procurement;
24
25
tID
any waiver made under Section IlB-67(f);
any procurement where no local small business is qualified
[(6)]
(2}
26
or able to perform the contract; or
o
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BILL
No. 23-15
27
[(7)]
ilQ)
any single procurement that is estimated to exceed $10
28
million.
~
30
31
32
33
34
*
IIB-67. Procedures.
*
*
*
(e)
*
*
A local small business is no longer eligible for a procurement under this
Article if the business has been awarded $10 million in the aggregate in
County contracts and at least 10 separate contracts, as either a prime
contractor or a subcontractor, [since] beginning January 1, 2006. The
Director must provide written notice to the business when it is no longer
eligible.
35
36
37
38
39
*
IIB-69. Reports.
(a)
*
*
40
41
42
43
44
45
46
By [September] October 30 each year, each using department must
submit to the Director a report on the number, type, and dollar amount
of contracts issued under this Article.
(b)
By November 30 each year, the Director must report to the Council on
the Local Small Business Reserve Program. This report must include
the number, type, and dollar amount of contracts awarded under this
Article during the preceding fiscal year, the nurriber, type, and dollar
amount of each waiver, information about how these numbers have
changed from the preceding fiscal year, and the extent of outreach
efforts.
47
48
49
50
o
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LEGISLATIVE REQUEST REPORT
Bil123-15
Contracts
-
Local Small Business Reserve Program
-
Amendments
DESCRIPTION:
The Bill would:
(1)
modify the types ofcontracts subject to the Local Small
Business Reserve Program;
(2)
amend the definition ofa local small business under the
Local Small Business Reserve Program; and
(3)
change the reporting dates.
The definition of a local business under the Local Small Business
Reserve Program is difficult to apply and certain types of contracts
should
be
removed from the Program.
These amendments will update the Local Small Business Reserve
Program to modify the requirements to
be
a local business and
minimize confusion from the vendors
CEX, DGS, OCA, DED
To
be
determined
To be determined
N/A
N/A
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
Grace Denno and Pam Jones, DOS
Karen Federman-Henry and Richard Melnick, OCA
N/A
Not changed:
Violations may constitute a material breach of the
contract. Accordingly the County may then exercise any available
remedy, including, terminating the contract for default.
F:\LAW\BILLS\1523 Local Small Business Reserve Program\LRR.Docx
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'. I
... ".1
OFFICE OF THE COUNTY EXECUTIVE
ROCKVILLE, MARYLAND 20850
Isiah Leggett
County Executive
MEMORANDUM
April 15, 2015
TO:
George Leventhal, President
Montgomery County Council
Isiah Leggett, County Executi..
----~,
Local Small Business Reserve Program Legislation amendments
FROM:
SUBJECT:
In
accordance with Section 313 of the County Charter and Section lIB of the
Montgomery County Code, I am forwarding the attached Local Small Business Reserve Program
Legislation amendments. The purpose ofthese amendments is to:
(1)
(2)
(3)
(4)
clarify the scope of the Local Small Business Reserve Program;
modify the factors for evaluating whether a business meets the criteria to
participate in the Local Small Business Reserve Program;
change the reporting dates; and
generally amend the law regarding the Local Small Business Reserve Program.
I recommend prompt passage of this legislation so the local businesses will
benefit from this program.
Attachments
c:
David Dise, Director, Department of General Service
Beryl
L.
Feinberg, Deputy Director, Department of General Services
Bonnie Kirkland, Assistant Chief Administrative Officer
Pam Jones, Chief, Office of Procurement
Grace Denno, Manager, Office of Business Relations and Compliance
.'t"":"'"
montgomerycountymd.gov/311
3
'.
240-773-3556 TlY
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ROCKVILI.E~
MARYIAND
MEMORANDUM
June 11,2015
TO:
FROM:
SUBJECT:
George Leventhal. President. County Council
lenniferA. Hughes, Director, office of
Joseph F. Beach, Director. Department ofF
Man~.ag
d
BUdget~­
V
V
~
FEIS for Bill 23-15, Contracts - Local Small Business Reserve Program ­
Amendments
Please
fInd
attached the fiscal and economi(! impact statements for the above­
referenced legislation.
JAH:fz
cc: Bonnie Kirkland, Assistant Chief Administrative Officer
Lisa Austin, Offices ofthe County Executive
Joy Nunni, Special Assistant
to
the County Executive
Patrick Lacefield, Director, Public Infonnation Office
Joseph F, Beach, Director, Department ofFinance
Fariba Kassirj, Acting Director, Office of Procurement
David Platt, Department
of
Finance
Erika Lopez-Finn, Office ofManagement and Budget
Alex Espinosa., Office
of
Management and Budget
Naeem Mia., Office ofManagement and Budget
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Fiscal Impact Statement
Council
Bill
23--15,
Local Small Business
ReservtProgram- Amendments
1. Legislative Summary.
The proposed legislation would modify
the
types of contracts subject to the L.ocal Small
Business Reserve Program; amend the definition ofa local small business to a business
which, "has its principal place of businessin
the
County"; and change reporting dates
from September 30 to October 30.
2.
An
estimate of changes in County revenues and expenditures regardless of whether the
revenues or expenditures are assumed in the recommended or approved budget. Includes
source of information, assumptions, and methodologies used.
There would be no changes in expenditures or revenues.
3.
Revenue and expenditure estimates covering at least the next
6fiscaJ
years.
Not applicable.
4. An actuarial analysis through the entire amortization period for each bill that would affect
retiree pension or group insurance costs.
The proposed legislation does not affect retiree pensions or group
insurdDce.
5.
An estimate ofexpenditmcs related to County's infonnation technology
(IT)
systems.
including Enterprise Resource Planning (ERP) systems.
The proposed legislation does not affect IT systems.
6. Later
actions
tbat may
affect future
revenue and expenditures
if
the bill authorizes future
spending.
lhe
proposed legislation does not authorize future spending.
7.
An estimate of
the
stafftime needed to implement the
bill.
Additional staff time is not needed to implement the
hilI.
g.
An explanation of how
the
addition of new
staff
responsibilities would. affect other duties.
Not applicable.
9.
An
estimate of costs when an additional appropriation is needed.
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No additional appropriation is needed.
10. A description ofany variable
that
could affect revenue and cost estimates.
Not applicable.
11 . Ranges ofrevenue or expenditures
that
are uncertain or difficult
to
project.
Not
applicable.
12. If a bill is likely to have no fiscal
impac~
why
that is the case.
The change in the definition ofa local small business clarifies a small business and the
change in reporting dates allows the Office of Procurement more time after
the
conclusion of the fiscal to compile
and
analyze the
data
for reporting
13.
Other fiscal impacts or comments.
14. The following contributed
to
and concurred with this analysis:
Erika
Lopez-Finn~
Office of Management and Budget
.Pam Jones, Office ofProcurement
GrciCc
Denno, Office of Procurement
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:Eeonomic Impact Statement
Bill 23-15, Contracts - Local Small Business Reserve Program - Amendments
Backgrouud:
This legislation would amend the Local Small Business Reserve Program (LSBRP)
to:
• modify the types ofcontracts subject
to
the Local SmalI Business Reserve
Program,
• amend the definition of a local small
bu.~iness
lmder the
Local Small BUsiness
Reserve Program, and
• change the reporting dates.
The intent of Bill 23-15 is to update the LSBRP with new size requirements and
minimize any confusion among the vendors. Bill 23-15 increases the threshold ofthe
services catego.ry vendor size from 50 to 100 employees and from
the
current $5 million
annual revenue to $10 million annual revenue.
Specifically, Bi1123-15 defines a
Local
Small Business as a for-profit business, otht.1'
than a broker,
that
has
its
principal place of business
in Montgomery
County.
The
legislation deletes
:the language
regarding "signiticant amount of
economic
activity
in
the
County" generated
by
the Local Small Business. Bill 23-15 also amends Section 11B-66
of the County Code
to
delete "or emergency"
from
the "a public entity
or emergency
procurement" language and adds that phraSe as a separate line in the Code. The
legislation
also
adds
"a
btidge contract" and
"a
cooperative procurement" to Section
I1B­
66.
1. The sources of information, assumptions, and methodologies used.
Sources of information include the Office of Procurement and the Department of
Economic
Development.
Sill 23-15 would increase the size of vendors eligible under the LSBRP in the
st.'rVices
category
and, therefore,
.increa.<re
the
LSBRP pool of vendors
that will
bid
on
County contracts. Based on
data
provided
by
the
Department of
Economic
Development,
the
nuniber of businesses
with
employees
fTom
51
to
100 is 806
establishments.
Oft[Jose
establisbments with
at
least 51
employees,
61
percent are in
the retail
trade;
professional, scientific,
and technical services; educational services;
and
arts,
entertainment,
and
recreation,
2. A description of any variable that could affect the economic impact estimates.
The
variable
that
could affect the economic impact is the number ofservice-category
vendors that employ between 51 and 100 t.'111ployees and have
revenues
between $5
million
and $10 million that could now become eligible for LSBRP contract awards.
3. Tbe Bill's positi"Ve or negati"Ve effect,
if
any on employment, spending, savings,
investment, incomes, and property values in the County.
Page 1 of2
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Economic Impact Statement
Bill 23-15, Contracts - Local Small Business Reserve Program - Amendments
The legislation is likely to have a positive economic effect on emplo}ment, personal
income,
and
business revenues for those companies that currently employ between
51
and 100
employees and have annual income between
$5
million and
$10
million.
Without detailed data on the number of sen.;ce-category vendors, a sped fie· economic
impact cannot be determined, however an order of magnitude estimate ofthe
potential· increased local small business revenues is provided
in
the table below wIder
different scenarios.
Assuming that LSBRP Expenditures remain at approximately 25% of Procurement
Expenditurt~s
Eligible for LSBRP Procurement (this ratio has been maintained since
FYIl ),with
an
&<isumed increase of LSBRP Eligible Procurement Expenditures in the
range of 25% t.o 50% as shovm
in
the t.able below, LSBRP revenue could increase by
$18.4 million to $36.9 million per year as a result of this legislation. Of course, these
are only order of magnitude estimates that are dependent on several variables
including the number of affected local small businesses, the change in procurement
related expenditures. and other factors.
I
Exemp~ion Cate~ories
...
IEligible for
,Procurement
8<pE;!n~itllrE!toLSBRP
LSBRP
Exp/EIi~ibfe
Potential Increase LSBRP Expenditure
compared to FV14
I
I···
Increa~~ ~~~Ii~ible.
~M
. Millio.n$,
25%
33%
50%
%
30.50%
24.60%
$980.77
$37~.96
.$397.90
$92.14
$98.03
25%
25%
$18.43
$24.32
$980.77
$980.77
$448.76
$110.57
25%
~~~~;'r<>:;:~;:~f9I1ars~:~
.
$73.71 .
25%
$36.86
4.
If
a Bill is likely to have no economic impact,
why
is that the case?
Bill 23-15
is
likely
to have a positive economic impact.
5. The following contributed to or concurred
with
this analysis:
David Platt,
Mary
Casciotti, and Rob Hagedoorn, Finance; Grace Denno, Office of Procurement.
~-------
Date
Page
2
of2
®
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TESTIMONY ON BEHALF OF TIIE COUNTY EXECUTIVE ON BILL 23-15,
LOCAL SMALL BUSINESS RESERVE PROGRAM AMENDMENTS
June 16,2015
I am Cherri Branson, Director of the Office of Procurement. I am here on behalf
of County Executive Isiah Leggett to ask for the Council's favorable consideration of Bill
23-15 and its accompanying regulations to amend the Local Small Business Reserve
Program (LS,BRP) to increase the LSBRP vendor pool and clarify language to minimize
confusion.
Montgomery County has a robust, active and responsive small business
community. Nearly 95% of resident businesses are considered small business. These
businesses employ local residents, provide good jobs, and make real contributions to the
local economy..
It
is clear that local small businesses have benefited from the LSBRP.
The program is widely supported by local vendors, chambers of commerce, and County
residents, because it provides fair yet active competition among local businesses to
ensure the public benefits from best value for the dollar spent under county contracts.
In
addition, the LSBRP provides an economic opportunity that every local small business
can benefit from now and in the future. This investment back into the local economy,
certainly a help in difficult times, addresses an ongoing need for every small business
struggling to get a foot-hold in the marketplace, and provides an equally ongoing benefit
to the County.
One of the amendments in the Executive Regulations (ER6-15) to the LSBRP is
to "increase the size criteria for services vendors from 50 employees to100 employees,
and from $5 million to $10 million average gross sales in the most recently completed
three fiscal years." This update is consistent with the State's recent threshold increase in
its Small Business Reserve Program, and will increase the number of businesses which
are eligible for participation in our LSBRP program. Based on data provided by the
Department of Economic Development, the number of Montgomery County based
businesses with employees from 51 to 100 is 806 businesses. Of those 806 businesses,
61 % are in the retail trade, professional, scientific, and technical services, educational
services, and arts, entertainment, and recreation. All are within the County's services
contracts marketplace. We believe that increasing the eligible vendor pool will allow
more LSBRP vendors to benefit from the LSBRP program, and therefore increase the
County's LSBRP contracting volume.
Another amendment is to identify "local business" as having "its principal place
of business in the County." "Principal place of business" is defmed in the general
Procurement Regulations (ER 2-15) as follows:
2.4.72 Principal Place ofBusiness in the County: A regular course ofbusiness
commerce in the County by a business, along with any ofthe following:
(1)
The business
has
its physical business location(s) only in the County; or
(2)
The business has physical business locations both in and outside ofthe.
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County, and the County-based location(s) account for over 50% ofthe business's total
number ofemployees, or over 50% ofthe business's gross sales.
Several other bills use this term, and it makes more sense "to have it defined in the general
Procurement Regulations rather than separately in each bill.
FUrther, inresponse
to
issues and sources of confusion identified by the business
community, Bill 23-15 updates language, definitions and exemption categories to
maintain consistency with the LSBRP enforcement practice and other compliance
programs.
Bill 23-15 is one of the many efforts that the County is making to reflect business
community feedback and make improvements to and update our existing compliance
programs and procurement procedures. County Executive Leggett believes that passage
of this Bill
will
help us to better serve our business community.
Thank
you for the opportunity to testify today.
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·I
_. ..
OFFICE OF THE COUNTY EXECUTIVE
ROCICVILLE, MARYLAND
2D8.SO
Isiah Leggett
County
Executive
MEMORANDUM
May 5, 2015
i
!
,
I:
TO:
:'
I
FROM;
SUBJECT:
r
i
I
i
i
I
am
transmitting
Executive Regulation 6-15,.Local Small Business Reserve
Progr3m.
This
reguI8non amendS the
Local
Small Business Reserve
Progrnm
regulations to:
1)
Increase the size
criteria
for services vendors from 50 employees or $5 Million to 100
employees or $10 million avernge gross sales in the most recently completed
three
fiscal
years;
I
I
I.
I
I
"
i
I,
2)
Add language in -the qualification
criteria
to require the LSB con.1l"actors to provide> at a
mjnjm~
51
%
ofmeasurable work on -the contract, measured by
the
dollar amount,
unless the Director specifies. in
writing.
a lower percentage based on a particular
contract's scope ofwork;
.Update
certification procedure language
to replace "LSBRP
self-certification"
with
"Local
Small Buslness Reserve Applie:ation" to minimize confusion;
and,
Update language in tlle definitions section and the exemption catego.ries section to be
co.nsistent
with
-the LSBRP Bill and o.ther compliance
programs.
3)
4)
Executive Regulation 6-15
was
advertised
fur
30
days
in -the March 2015 issue o.f
the Mo.ntgo.mery Co.unty
Register.
No. comments
were
received
in
response to
this
advertisement
This
Regulatio.n wo.uld
supersede
Executive Regulatio.n
2-09.
montgomerycountymd.gov/311
liiiDi._
240-773-3556 TTY
13
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Fiscal
Impact Statement
Executive Regulation 6-15,
Loeal,Small
Business Reserve Program
1.
:Executive Regulation SUIll.1l18IY
The amendment to the
Local
Small Business
Reserve
Program
to:
,
i.
.
r
"
a.
Increase the
size
criteria for
services
vendors from
50
employees
or
$5
million
to
100 employees or $10 million average
gro~
sales in the most recently completed
three fiscal
years;
b. Add
language
in the qualification criteria
to
require the
LSB
contractors provide,
at
a
minimUlll,
51%
ofmeasurable
work
on the contract,
measured
by
the dollar
amOUD.4 unless the Director specifies,
in
writing,
a
lower percentage
based
on
a
particular contract's scope ofwork;
c. Update certification procedure language to replace
"LSBRP
seIf-certifiCation"
with
"Local
Small Business
Reserve Application"
to
minimjze
confusion;
.
,d.
Update language in the definitions section
and
the
,exemption categories section
to
keep
Consistency with the
LSBRP
and
01her
compliance programs.
2.
An estimate of changes in County revenues
and
expenditures
regardless ofwhether the
revenues 'or expenditures
are assumed
in
the
recommended or approved budget. Includes
source of information, assumptions, and methodologies used.
The amended regulation does not affect revenues or expenditures. The amendment
updates language and expands the scope of the program. No additional staff time
is
needed
to
implement the changes.
'
"
,
3.
Rev'?1ue and'expenditure estimates covering
at
least the next
6
fiscal
years.
See item #2. ,
4.
An actuarial analysis through the entire amortization period for each regulation that
would affect retiree
pension
or group insurance costs.
Not applicable.
5.
An
estimate of expenditures related to County's information technology
(IT)
systems,
including Enterprise Resource Planning
(ERP)
sy~ms.
The amendment ,does not affect the County's information technology
systems
or ERP.
6. Later actions
that
may affect:future revenue
and
expenditures iftbe regulation authorizes
future
spemfing.
The amendment does not
authorize
future spending.
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7.
An
estimate of
the staff
time needed
to
implement the regula1ion.
See #2
above.
!
8.
An
explanation Qfhow the addition ofnew staff responsibilities would affect other duties.
The amendment does not result in additional staff responsibilities ..
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9.
An
estimate
of
costs
when
an
additional appropriation
is
needed.
No additional appropriation
is
needed.
10. A
description of
any.
variable
that
could affect revenue and
cost
estimates.
!
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Not applicable.
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11.
'Ranges ofrevenue or expenditures that are
uncertain
or
difficult
to
project.
Not applicable.
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12.
If
a regulation is likely,to have no
fiscal
impact,
why that
is
the case.
The amendment raises the threshold for small businesses and changes the
reporting
date;
there
is no increase
to
the workload for the Office of Procureinent.
13.. Other
fiscal
impacts or comments.
Not applicable.
14. The following contribUted
to
and concurred
with
this
analysis.
,Grace
Denno,
Office of Procurement
Erika Lopez-Finn, Office ofManagement and Budget
Date
.
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'MONTGOMlliRYCOUNTY
,
,
EXECUTIVE REGULATION
Offices of the County Executive • 101 MQnroe Street • Rockville,
Mary~d
20850
Subject"
,Local Small BUsiness Reserve Program'
Originating
Department
Number'
'"6-15
, Office of Procurement
Montgomery County RegUlation on
LOCAL SMALL BUSINES$ RESERVE PROGRAM
,
'
Effective
Date
Issued by: County Executive
, Regulation No. 6-15
COMCOR
Sec.
11B.65.01 ,
'Authority: Montgom,ery County
Code
(2014,
as
amended) Sec: llB-65 '
Supersedes: Executive Regulation 2-09 and 21-05 AM
Council
Review: Method (2) u:Oder Code
Se~tion
2A-15
" . Register
Vol.
.J.L
No.
_3_,
'
Effective
D~te:
'_ _ _ _ _ __
'Comment Deadline:
March
30,2015 "
,
,
Summary:
This
n;gulation amends the
Local
Small Business Reserve Prograin, RegUlations,' to:
1:,
Inereasethe size criteria for servIces vendors from 50, employees or $5 million
to
100
.employees or $10 million average gross sales in the 'most recently completed three
fiscal
years; -
'
2. Add language
in
the qualification criteria
to
require LSBRP contractors to provide, at
a
minim~
51% of measurable work on, the contract, measured by the dollar' amount,
unless the Director specifies,
in
Writing, a lower percentage based on a particular
contract's scope of work;
3.
UpiliJ,te certification procedure language to replaCe
"LS~RP,self-certification';
with
"Local
Small Business Reserve Application"
to
minimize confusion;
and, .
. 4. Update language
in
the definitions section and the exemption categories section
to
keep consistency with the LSBRP Bill and other compliance programs.
Grace Denno, Chief
,
Office ofBusiness Relations and Compliance, Office ofProcu:renlent'
240-777-9959 '
Office ofProcurement
255
RoCkville
Pike; Suj.te 180
Rock.ville,Maryland 20850
,
Staff contact:
Address:
-
,
BackgrOlmd:
, This regulation implements Chapter lIB, Article
XV
ofthe County
Code,
with the above
amendments.
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MONTGOMERY COUNTY
EXECUTIVE REGULA.TION
ome~
of the County Executive •
lOlM(i~oe
Street • R,ockville,
.Maryland
~O850
44~YLp-:Q
~
.&.
Subject
Number
Local
srruill
Business Reserve Program
. Originating
Department
6-15
EffectiVe Date
,
.'
.
;
Office ofProcurement
-
.
Section 118.65.01 LocalBmall Business Reserye Program
is
~~ded
as follows:
llB.65.01.01 Authority
.1
und.er ChaPter 11B, Article,XV offue, County Code,
bs
codified
at§§
llB-65
through
70, this
Executive
Regulation establishes definitiops, processes,. and procedures to admhiister and
imple~ent
the Local Small
Business Reserve Program. ,
IlB.65.01.02 Definitions
In
accordance with the requirements ofMontgomery- County Code
§
11B~17
A,
and the'
Prograin
authorized
The Detiiritions noted in the County Procurement
La~
and related Regulation apply to this RegUlation" uDless .
stated
·otherwise.
(a) . Broker -
A
person
that
conducts business (other
than
real estate, investment, or insurance sales)
'
on a pass-through basis and with respect to:
(i)
Supplies:
a.
Does not own, operate, cir maintain a place of business in
whi~h'
supplies ofthe
general character required under the contraCt are kept in stock in the regular
course ofbusiness.
Does not regularly assume physical custody or possession of supplies of
comparable character
to
those offered to the County, or .
EXclusively acts as a middleman in the provision of sUpplies offered to the
County; or
.
b.
c.
(ii)
SerVices[,],;, does not regularly
maintahi
the capability, capacity,
training~
experience, and
. applicable regulatory licensing
to
directly
PerfOml
the principal
tasks
of
a
contract with
the County,
~d
acquires the services
elsewhe~~
for,the benefit ofili!!: County..
,
.
(b)
Combined Dollar Value. of Contracts -
A
Using Department's total, combined dollar value of
procurement contracts for
goods~
services, or construction during a given partiGular fiscal year.
'J1ris
has
the same meaning'as "total dollar value ofprocurements"
li$
that
term
is used in County
Code
§
llB':'66(b)
~d
(c).,
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MONTGOMERY ,COUNTY
EXECUTIVE REGULATION
,
,
Offices
of the
" .
County
Execu~ve·l()l
Monroe
Street
'"
~ockville,
Maryland
20850
Subject
, Local
Small Business Reserve
~gram
Uriginating
Department
Office
ofProcurement
Number,
6-15 '
Effective Date
(c)
Director - For purposes, ofthis Regulation related
to
the Local Small Business Reserve Program,
the
term
"Director" means the birector
'?~
the [Department of General Services (DGS)] Office of
Procurement
(d)
Dep8rtment - For purposes of1his.Regulation related
to
the Local Small Business Reserve
Program, the
term
"Department" means the [Department of
General
Services (DGS)] Office of
-,
-t
I
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,
Procurement
(e)
Employment or Employ - The measure:IJlent ofthe number of people
a
business did or did not
'employ is calculated on a
"Full-
Time
Eqtrlv~ent"
(FTE)basis. Any full-time, part-time,
temporary, or contractual employee, who is not
a.
broker, including
an
employee of a'temporary
,help
:firm
or a
subcontractor, working, for and receiving compensation from the business,
will
be
included in determining the number of people a business did or did not employ for a p'articular
,period. , The
ave~ed
sum ofthe specific
FTE
employm~nt
levels for a 'business
at
the end of
each-calendar quarter (i.e., ,March 31, June 30,
~eptember
30 and'December 31)
will
determine
the
business's annual
FTE
empl~yment
level.
'
Gross Sales - The total docUmented value of sales, before deducting for expenses, customer
.
discounts, allowances, or returns.
Independently Owned and Operated - Where those in possession of controlling interest and
those directing and managing the affairs of a business are
free
from the influence, control, and '
'
'
determination: ofothers.
'Local SmallBusiness -' A for-profit business, other
than
a broker, that [meets the following
elements]:
(f)
(g)
a
(h)
(i)
,has its principal place of business in the County;
'[The business] is independently owned
and
operated[.t
[The business] is not a subsidiary ,of another bu.smess[.]; and
The business generates
a
significant amount of economic activity in the County.]
@[(i)]
@[(ii)]
[(iii)
, (iv)
meets
[The]
criteria,
size
limits,
and gross sales amounts noted
in
this Regulation,
including those in [Section 3] I1B.65.01.03 below. ,
(i)
LocaJ,Small Business Reserve - Any procurement
thirt
is limited to
responses
from Local Small
Businesses.
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MONTGQMERYCOUNTY
.
.
EXECUTIVE REGULATION
Offices of the CountY Executive" .101 Monroe
Street·
Roc~e,
Maryland
20850
Subject.
,
Local Small
~usihess
Reserve Program
Urigmating Department
Nmn,ber
, , 6-15
Effective'Date
Office
of
ProcuremeIi.t
Locill
Small Business Reserve Application
-,An
on.-line based application system
that
resides 'in
the County's web site; by which a Contractor Jpruvides self-certification, by affidavit or
otherwise, deri1onstrating] completes an on-line applicanon, and submits it to the Director for
[that
'!;he Contractor meets
all
of
the
requirements ofthe definition of] certification
as
Loc~
Sinall Business.
,
a
,
,
,(k)'
Local Small Business Reserve Database - A database that resides' in the [County] County's web
: site
that
stores the
list
of [self-certified] Local
smail
Business[Businesses] applicants. and
eDables search by the business name, industry sector, and the County commodity code.
Regular Course of Business Commerce - The on-going and Continuous exchange ofgoods or
services_ for money between two or more businesses or
betWee~
a busmess
and
consumers.]
Significant Amount ofEconomic Activity in the County ,-
A
regular course
~fbusiness
. commerce in the County by a business, along
with
any of the following:
,
'
[(1)
[em)
- (i)
(~i)
The business has
its
physical business 10cation(s) only in the County; or
The
business
has
physical busmess locations both
in
~d
outside ofthe County, and the
County-based location(s) account for over 50% of the b:usmess's total number of
employees, or over 5.0% ofthe business's gross sales.]
,
'
ill((n)]
Subsidiary ofAilother Business - A business controlled by another business
that owns all or a '
_' majority ofits shares or interest:,
"
llB.6S.01.03 [Size
and
Sales]
Criteria
To
~
as
a "Local Small Business," a business must; meet the definition in 11B.65.01.02 [Section 2]
above; provide, at
~
minimum, 51 % ofmeasurable work on the contract, measured
~
the dollar amount, unless
the Director specifies, in
writing,
~
lower percentage based on
!!
particular contract's scope ofwork; and, meet
the following size or gross'sales criteria:
­
(8.)
The wholesale operations (Sale-of goods in large quantities usually for resale) If the business,
if
any; did not employ more'than 30 persons, or the gross sales ofthese business operations did not
exceed an average of$5,000,000 in its most recently completed, 3 fiscal years.
The retail (sale of goodS
in
small quantities directly to the ultimate consumer) operations ofthe
bUsiness, if lJD.y,
di~
not employ more
t\lan
30 persons, or the gross sales ofthese busmess : ­
opei-ations did not exceed an average of$5,000,000 in its inost recently completed 3 fiscal Yel:JI'S.
-
,
(b)
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MONTGOMERY COUNTY
EXECUTIVE REGULATION
Offices of the County Executive • 101.Monroe Street • Rockville, Maryland 20850
Subject
'Number·
I
,
~
Loeal Small Business
Re~e
Program
.
.
.
.
Qriginating Department
Office.ofProcurement ..
(c)
6-15 .
Effective Date
The manufacturing (producing goods from raw materials by
b.B.nd
or by machfuery) operatiQns of
the business,
if
any, did not employ more
than
40 persons, or the gross sales of these business
operations did not exceed an average of $14,000,000 in its most recently co.mpleted 3 fiscal
years..
The .services operations 9fthe business,
if
any, did not employ more than [50] 100'perSons, or
the
gross sales cifthese business operations dld not exceed an average of $[5]lQ.000,000 in its most
recently completed 3 fiscal years.
.
.
. Cd)
. (e)
The construction operations ofthe business,
if
any, did not employ more
than
50 persons, or the
.
gros~
'sales ofthese business .operations .did not exceed an average of $14,000,OQO in its most
recently completed 3 fiscal years.
Gross 'sales for a business that
bas
'been in operation long enough to file a Federal income. tax:
statement, shall
be
determined by the average of·gross sales amounts contained on the:tax . .
formes) for the most recently completed 3 fiscal
years.:
Inthe absence of a federal income
tax:
statement, the business must provide verification·
that
it meets the definition of a Local Small
Business, including the above size
and
sales criten.a, through audited financial statements.
If
a
· . business
has
not existed for three years, the
emplo~ent
and
gross sales average(s) shall be the
average for each ye¥ or part of a year·
~uring
which .the business
has
been in existence. For a
· newly formed business, the determinations regarding size and sales criteria
Will
be
based upon
then-current employment
levels
as ofthe
time
ofthe Local Small
BusiI;less.
Res~tve
Application
[application], and projected gross sales for
th8:t
fiscal year.
If
a business operates in more than one ofthe above-noted business operations classifications
· (i.e" wholesale, retail, manufacturing, service, and construction), its combined business
operations must meet the· above-stated limitation ofthe more liberal size and sales criteria. For
instance, the gross annu8l sales limit for wholesale businesses
is
$5 million; for retail goods, and
non~c6nstruction
services the limit is $5 million; and for construction services and 1IlBliufacturing
the limit
is
$14 million. Therefore, the combined operation cannot exceed $5 million annually in
average gross sales. Further, regarding size; the employment limit for wholesale and retail
business operations is 30 personS versus [50]100 for a service operation. Accordingly, a
business with both wholesale and service classifications can have
up
to [50] 100 employees.
(t)
(g)
llB.65.01.04
Contract Under Local Small
Business
Reserve Program
(a)
Except as provided
in
Subsection (c) of l1B.65.01.04
[this
Section 4], this Regulation applies
to
. all
procUI'elD.ents by a Using Department. Any procurenient under this
Program
is
~ubject
'to
all
requirements and procedures otherwise applicable to the procurement under the Procurement
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MONTGOMERY C.OUNTY·
.EXECUTIVE
.REGULATION
.Offices
of the County Executive • 101 Monroe Street • Rockville,
Maryland 20850
I
f
Subject
. Local
SIDan
BuSiness Reserve Program
Uriginating Department
Nlimber
6-15
Effective Date
Office of Procurement
RegllIations. Except
as
otherwise provided·by law, the provisions ofthis Regulation supplement,
but do not replace, other provisions of, and definitions
in,
the
COl.mty'sProcurement Regulations
and Procurement Law..
(b) .
A
Us~
Department must award a minimum of20 percent ofthe Using
Departme~t"s'
comb].ned
dollar value of contracts
issued
for goods, services, or construction to a Local Small Business. A
Using Department need not designate a contract or
a
solicitation
as
a Local Small Business
Reserve in order for it'to' cou;nt towards the immediately preceding requirement to award a
minimum of20 percent ofthe Using Department's combined dollar value of contracts
aw~ded
for goods, services, or construction
to
a Loc81 Small Business. 'IQ.e dollar amount of a contract
that
is solicited
through
the regular Procurement process
that
is
awarded
to
a certified Local
Small Business counts toward the 20 percent requirement .
.
(c)
. The combined dollar value ofprocurements by a Using Department under this section does not
inClude:
.
.
[1]ill the
~ue
of any contrn,ct to which this Regu.IatioIi 'does not apply because of a conilict
with a State, federal, or 10ca1law or,a grant requirement;
.
[2]® . a preexistiDg contract or extension(s) of a preexisting, multi-year, contract executed by
the County;
[3](ili)
'a
non-competitive contract;
[4](iv) a public entity [or emergency] procUrement;
(y)
an emergency procurement;
(vi)
1!
bridge contract;·..
(vii)
1!
cooperative procurement;
. [5]eviii)
any waiver.made under Montgomery County Code
§
IlB-67(f);
[6](ix) any procurement where no Local Small Busmess is qualified or able
to
perform the
contract
as
determi;ned by the [head ofthe Using ])epartment] Director; or
.
[7]00
any single procurement
that
is estiniated to exceed $10 million.
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MONTGd~RYCOUNTY
.
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EXECUTIVE ltEGULATION
Offices of the County Executive • 101 Monro,e Street • Rockville, Maryland 20850
SUbject
Local Small Business
~e
Program
Uriginating
pepartment
Office ofProcurement
Number
,
,
!
..
. . 6-15
1
Effective Date .
(d)
In
determining whether a Con1ractor
is
"qualified or able to perform the contract" under
, llB.65.01.04(c)(6) [Section 4(c)(6)], the UsmgDepartment must make arecommendaOori of'
the time o,f a business's offer
inrespo~
to a solicitation based on a ,Contractor's reputation, past
performance, business and financial
cap~ility
and other factors that'deinons:trate'the Contractor
is capable of satisfying the County's needs.and requirementS for a specific con1ract This
requirement is in
addi~on
to those stated in Section 6.3 ,ofthe Procurement Regulations
regardiIig responsibility.
'
as
(e)
, a:ny
(a)
In
order for a business to be eligible to respond to a solicitation under the Local Small Business
Reserve Program. a bUsiness [has to be registered and Qertified] must complete and submit the
on-line vendor registration, including the Local Small BUsiness Reserve Application on Lin] the
[County] Cbtinty's web site.1 prior to the applicable solicitation due date and time [(clQsing
, date)]. The business must receive the Director's certification as
~
Local Small Business prior to
contract award. '
, llB.65.01.05 Procedures and Program Operations
,
'
Any
procurement of goods, Services, or construction by a Using Department is eligible for
designation for'the Local' Small Business Reserve Program by the Using Department director, or
designee, except any procurement that is' excluded under County Code
§
IlB-66(c); the'items of
which are reiterated in llB.65.0L04(c) [Section 4(c)] above.
.
,
,
(b)
A solicitation for a procurement that has been designated under the Local Small Business
" Reserve Program must be published in the same malmer as required for other
soli~itations
under
County Code"
Chapter
lIB, Article ID.
The Director
will
award a procurement con1ract desigruited as a Local Small Business Reserve
in
,accordance with County law ap.d Procurement Regulations, except to the extent stated otherwise '
in this Regulation.
',
(c)
(d)
, Abusiness must
affirm
and provide supporting
docum~tation
to the Director to. show
it is a
Local Small Business as defined in County Code
§
IlB-65(a) when required or requested'by the
, Director.. The Local Small Business must complete any required Local Small Business ReserVe
Applicatigri imd
~y
supporting affidavit required by [DSO] the Director to demonstnite
~o
the' ,
Director
that
it is J;..ocal Small Business. [DSO will.post this
req~ement
and any required
affidavit on the Local 8,mall Business Reserve web
si~.]
"
'"
.
that
a
The
Local
Small Business must
be
in compliance with applicable Federal, State
and
County laws.
and regulations, including those relatirig, to permits, licenses. and zoning that apply to operating .
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.MONTGOMlliRY COUNTY
EXECUTIVE REGULATION
Offices
of the Couilty Executive •
101
Monroe
Street·
Rockville,
~land
20850 '
Subject·
.
Local Small
B~iness
Reserve Program
Uriginating Department'
Office ofProcurement
Number "
6-15'
Effective Date
the 'business.
In
addition, the business must operate
in
or
from,~
physical location. and, among
,other
things.
reference
Qy
the business
to
~ ~
office box or
virtUal
office
is
insufficient to
substantiate a physical location from which the business operates.'
ill[(e)] Eligibility as a LocalSinan Business ends [A Local
S~ B~iness i~
no longer eligible for a
procurement under the Program]
if
the hQsiness
has
been awarded $10 million in the aggregate in
County contracts
and
at
least 10. separate contracts: either a 'County prime contractor ot
subcontractor, [from] beginning January
1,
2006. The Director will provide written notice
to
the
Local Small Business when'the ,Local Small Business is no longer eligible for the Program and
the Director will rem9ve the Local Small Business' from the
LoCal
Small Business Reserve
Database.
i,
as
oo[(f)]
The Chief Administrative Officer
may
waive the application ofMontgomery County Code,
Chapter lIB, Article XV, to a specific procurement
if
the Chief Administrative Officer finds that­
the application ofthat Article conflicts with.the overall objectives and responsibilities ofthe' ,
Chapter. The Chief Administrative Officer must keep records on the number ofwaivers issued
and the reason for each waiver. This information must
be
reported to the Council by the
,Department in the annual report on the Program under Code
§
IIB-69(b). '
OO[(g)]Montgomery County Code, Chapter lIB, Article XV, does not give any person, including a
Local Small Business, any right or
status,
including standing, to challenge the award of a
contract or subcontractUJider the County procurement system. '
1b.at
Article
is
enforceable only
through the oversight function ofthe Chief Administrative 'Officer and
the
County .counciL '
.ill[(h)]
Administration and Iniplementation: The following delineates the departmental responsibilities
to administer and implement the Progpm:
(i)
The Department [of General Services]
ad.:rD.inisters
and implements the Program.
It
must
compile and
rruiintain
a comprehensive bidder's list of [self-certified] Local Small
Business [Businesses] applicants
that
have completed and submitted the on-line Local
Smal1Business Reserve Application. and post that list on the County's' [Internet] web
sit~.
To accomplish these obJectives, the Department
will:
[(a):@. With cooperation from the. Department of Tecbnology Services (DTS), develop
an Internet-based LOcal SIru!ll Business Reserve Datahas\tl
(Datab~e) h~used
in
the County's web site that
will,
at
a
minimum,
have the following features:
1.
Local
Small BuSiness Reserve
Pro
giam
descriptio?; , ,
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MONTGOMffiRYCOUNTY
EXECUTIVE
REGULATION
'"
.
Offices of the County
Executiv~
• 101 Monroe
Street •
Rockville, Ma.ryland 20850
Subject·
LoCal Small Busjness Reserve Program.
Uriginating
Department'
N:umber
6-15
Effective Date
Office
ofProcurenient
2.
3.
Local Small Business Reserve [Program] Application [and Contractor
self-certificatiorr] module; .
. [Self-Certi:6ed]
Local Small Business applicant database that
can
be sorted
according to the commodity code used by the County.Procurement
. process;
4.
[Self-Certified] Local Small BJJSiness applicant profile update module; ,
and
.
.'
[Self-Certified] Local Small Business applicant [annual] renewal module,
5.
[(b)lb. Maintain the DatabaSe by:
1.
2.
Enhancing the efficiency ofthe database by incorporating advancements
in
database technology;
,
,
Requiring each [self-ceIti:6ed] Local Small Bpsiness applicant, before .
being aWarded a County contract designated as, for this
.Pro~
to submit
documentation to the Department that satisfactorily demonstrates that it
meets
all
ofthe requirements 'of a LOcal Sman Business as ofthe [bid
closing]. solicitation due date and time for
that
procurement
Tracking the number and the dollar amount of County contracts awarded
to. each Local Small Business in the Database, in coordination with other
Using Departments:
Removing a Local Small Business from the Local Small Business Reserve
Database when the Local Small Business
has
received
$10
million dollars
in
County contracts the aggregate and
at
least
10
separate contracts, as
, specified
ill
I1B.65.01.05(f) [this Section 5(e)].
Removing a Local Small Business from the Locai Small Business Reserve
Database when the Local Sm8n Business fails to meet the definition of
Local Small Business as defined in
this
Regulation. A removed LOcal
Small Business
will
subsequently be added to the Local Small Business
Reserve Database by the Director only
after
the business submits an
appeal letter and sufficient suPP9rting documents to the Director within
fifteen (15) days after removal from the'list by the Department The
Page 9 ofi3
3.
4.
5.
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MONTGOMERY COUNTY
.
.
EXECUTIVE· RE.GULATION.
Offices ofthe County Executive --101 MODroe Street • Rockville, Maryland 20850
Subject
,
Local
Small Business Reserve Program
Uriginating Department,
Number'
.
6-15 '
Effective
nate
,
Office of Procurement
busines~'s
letter must evidence
~t
the business meetS
~e
definition of
LO~
Small Business as defined in llB.65.01.02(h) [Section 2(h)] of this
. , Regulation. The review and approval ofthe appeal.1etter
is within
the sQle
discretion ofthe Director.
'
.
6.
,Assigning a
unique
County Vendor Identification
num~r
to each Local'
Smal1,Busine~s
in,the Database. '
[(c)J!;. Market the Program and Provide Outreach Efforts
to
Local Sm3n Businesses by:'
1.
,2.
Advertising the Program
in
the
~edia,
as
deemed
n~cessary
by the
Director, to increase the public aWareness
~f
tJ:1e
Program.
,
"
Preparing a Program brochure
and
,other
neces~
collaterm material, and
distributing these materjals in strategic locations, as determined by the
Director~
to' enable
and timely access by businesses
in
the County.
easy
, 3.
4.
Participating in County business ,events, at
least
three 'times a year, to
market the Program. '
'
Wo;rking with small business resource groups in the County such as:the
Chambers of Commerce, Small
BusinessDevelopIllen~
Centers, Women's
Business Organization, etc.,
to
disseminate Program information to the ,
member businesses.
Preparing a press relea,se once
a
year'to public,ize the Program results.
5.
[(d)]d. Reporting: By November 30 each year,. the Director must report to the Council'
. on the
Local
Small Business Reserve Program:
This
report muSt'include: the
number, type, and dollar amount of contracts awarded under this RegUlation
during the preceding
fiscal
year; the number, type, and dollar amount of each
waiver from the Internet posting requirement granted by the Director; the number,
type, and dollar amount of each waiver pertaining
to
the Progranithat ,is granted
by the Chief Administrative Officer; information about how these numbers have
changed from the preceding
,fiscal
year;
and,
the extent of
o~ch
efforts by
, [DGS] the Director. [DGS]
The
Director [through its Office of Procurement]
will
work
With
the
office
of Legislative Oversight to ensure
that
the
d3ta
needed
to .
, conduct a cOmprehensive evaluation ofthe program are collected.
Page 10 ofl3 .
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MONTGOMffiRYCOUNTY
EXE.CU.TIVE
REGULATION
.
~
.
.
Offices of the Count,r Executive '-101 Monroe Street •
Roc~e,.Maryland
20850
Number
, 6-15
Effective Date
Subject
Local Small Bushless Reserve Program
, Originating Department
.
Office of Procurement
[(e)k: Take any other actipn necessary to adniinister or implement
this
Pr?gram.
.
.
(ii)
The Using Department: The Using Department
will:
[(a)]a. Award
a
minimum of 20 percent ofthe Using Department's combined dollar
value of contracts issued for goods, services, or construction to Local Small '
Businesses, except as noted in 11B.65.01.04(c) [Section ,4(c)], above. .
,
,
[(b)]b. Notify the Office ofProcurement upon designating a procurement as a Local
Small Business Reserve.
[(c)]c. Search the Local Small B.usiness Reserve Database before conducting
~
, solicitation process and before recommending
ven~or
for award, ina contract,
that
has
been designated for this Program.
[If
the vendor
is
self- certified in the
Local Small Business Reserve Database, the] The Using Department must obtain
verification from [DGS] the Director. prior to recommending the vendor for
award, that the vendor is an eligible Local 'Small Business.
a
[Cd)
Post on a County web site each planned purchase of goods, services, or
construction valued at $5,000 to $25,000, regardless ofwhether the solicitatio'n is
designated as a Local Small Business Reserve or not, fot 5 business
~ys
in the
manner described in CoUnty Code Section 11B-17
A.
before the County enters
into a contract.]
.
, [(e)]d.
Track
and
report to the Director,' by September 30 of
~h
year, the procurement
activities under the Program during the previous fiscal
year,
in accordance
with
County Code Section 11B-69(a) and (b), induding:
.1.
. Number,
type,
and combined dollar value of contracts awarded;
Number,
type,
and combined dollar value of contracts that are' not
included under
this
Regulation, in accordance
with
County Code Section'
11B-66(c); .
'
Number,
type,.
and combined dollar value of contracts awarded
to
Local
Small Businesses.
Number,
type,
and
combined dollar value of contracts
that
were'initially
designated Under the Program but were not awarded to a Local Small
2.
3.
4. .
Page 11 ofl3.
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MONTGOMffiRYCOUNTY
EXECUTIVE REGULATION
Offices of the CQunty
~ecutive
101 Monroe Street • Rockville, Maryland 20850
Subject
Local Small Business Reserve Program
Uriginating
Vep~ent
Office ofProcurement
Number·
6-15
Eff~eDate
-Business,
and
the reason they were not awarded to a Local SIhall
Business.
S.
Procedural changes and other related administrative efforts made to
comply with
this
Regulation, and the associated nscal impact
Of
such
changes.
.
.
.
[(f)k,.
Take any othei: action
neces~
to comply
with
this Regulation.
(m)
The Department [of General
Servic~s]
will: .
[(a)
Develop procedures and processes
to
enable a Using Department to post each .
planned purchase of goods, services, or construction valued at $5,000 to $25,000,
,nna County web site. The Using Department must ,clearly identify, on the
County web site, a Procurement
that is
designated as Local Small Business
. Reserve.]
"
[(b)]a.
Develop' a process
to
ensure that in any Informal'Solicitation, the vendor. selection
process used by the Office of Procurement to generate the five random vendor
selections required unde;r the Procurement Regulations includes vendors from the
Local Small Business Reserve Database.
'
.
[(c)]b. The Director must keep records on the number of waivers of a Using,
Department's'Internet posting requirement issued in accordance
with
County
Code Section
IIB-17A(c),
during a given fiscal year, and the reason for each
waiyer. The Director must report
this
infoimation
to
the Chief Administrative
Officer (CAO) by [September]. October' 30 of
each
year. .,
(iv)
Department ofTecbnology Services - The Department of Tecbnolqgy Services
will
assist
th~
Department in administering and implementing the Program, including that which
is
indicated in
[(h)]ill(i)
of llB.65.01.0S [this
S~tion
5];
The Chief
A:~tive
Officer
will:
[(a)~
.
.
.
(v)
Have the authority to ww.ve.the application ofthis Regulation to
!i
specific
contra,ct
if
the Chief Administrative Officer fuids
that
the application of
this
Regulation conflicts with the overall objectives and responsibilities of Article XV
. of Chapter lIB of
the
County Code. The Chief
A~strative
Officer must keep.
.
records on the
number
ofwaivers
the
Chief AdminiSttative Officer issues and
the
Page 12
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~
MONTGOMERY COUNTY
EXECUTIVE REGULATION
Offices of the CountY. Executive • 101 Monroe Street .• Rockville, Maryland 20850
"
Subject
Local
Small Busmess
Reserve Program
Office of
Procurement
:
.
,
Number
6-15,
Effective Date
Uriginating Department
.
. ',reason for
each
waiver. This.information must
be
reported
to
the Director
so
this
information
can
be
included
in
the
annual
report to the County Council on the
Program,
as
required
under
Co~ty
Code Section I1B-69(b).
[(b)&
Provide
the
ov~ight
function
to
enforce
the
Regulation.
llB.65.01.Q6
Penalty;
Enforcement ,
In
addition to
that stated
mder County Law.
or
a particular contract, aily person who willfully makes a false
statement to a'County o:ffi.ciaI Qr employee for
the
purpose ofinfluencing participation in
the
Progiam;
or
fraudulently obtains, attempts
to
obtain; or aid another
p~on
in fraudulenUy obtaining or attempting to obtain
public
m~es
to which the person
is
!,lot entitled mder this Regulation constitu,tes a
materiaL
breach of
the
contract. .Accordingly the CQunty may
tb,en
exercise any available remedy. including,
tennjnating
the contract
for default
.
llB.65.01.07
Effective Date
This
EX~Gutive
Regulation takes effect upon approval by the Comty Council.
~~
IS~Leggett ~
COunty Executive .
Approved
as
to form
and
legality:
rR~
1+.
NQ~ ~r~O!).Q'5
Office
of~
County AttomeylDate
Page 13
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MONTGOMERY COUNTY
. .
EXECUTIVE REGVLATION
. '
'Offices
ofth~.County
Executive -101 Monroe' Street - Rockville, Mary.land 20850
Subject
, Local Small Business .Reserve Program
Uriginating
Department
Office of Procmement
!
i
Number
6-15
Effective Date
I
i
!
I
!.
i
Montgomery County Regulation on
.
.
.
.
j.
LOGAL SMALL BUS;rNESS RESERVE PROGRAM
Issued by: County Executive
, Regulation No. '6-15
. COMCOR
Sec.
.11B.65.0 1
Authority: Montgomery County Code (2014, amended) Sec. IlB-65
Supersedes: Executive Regulation 2-09 and 21-05
AM
. Council Review: Method (2) under Code
Sec~on
2A.:.15
Register Vol.
..JL
No. _3_
Effective Date:
Coinment Deadline: March 30,2015 '
, !'
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as
-------
.
.
Summary:
llis regulation amends the Local Snlall Business Reserve Program Regulations; to:
1. Increase the size criteria for services
vendo~
from 50 employees .or $5 million to 100.
employees or $10 nlillion average gross 'sales
~
the most recently completed three
fiscal years; .
2; Add language in the qualification criteria to require LSBRP 'contractors to provide, at
a
minimum,
5'1
%
of measurable work on the contract, measmed by the dollar amQunt,
unless the Director specifies,
in
writing,a
lower percentage
based
on
a particular
contract's scope ofwork;
.
~
J.
Update certification procedure language to
repl~e
"LSBRP self-certification"'With
"Local Small Business Reserve Application" to minimize confusion; and,
4. Update language in the
de:finitio~
section and the exemption categories section to
keep consistency with the LSBRP Bill and other compliance programs.
Grace Denno, Chief
Office of Business Relations and Compliance, Office of Procurement
240-777 -9959
Office of Procmement
255 RQckville Pike,
S.uite 1
~O
Rockville, Maryland 20850
,
"
f
Staff contact:
Address:
Background:
This
regulation implements Chapter lIB, Article
XV
ofthe County Code,
with
the above
. amendments. '
Page 1 ofl2'
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MoNTGOMERY COUNTY
EXECUTIVE REGULATION:
Offices of the
~ounty
Executive •
101
Monroe Street
~
Rockville,
Maryland 20850
Subject
Local Small Business Reserve Program
Number
&:15
Effective Date
Originating Department
Office of Procurement
Section llB.6S·.01 Local Small Business Reserve Program.
is
amended as follows: .
llR65.01.01
Authority
In
accordance with the requirements ofMontgomery County Code
§
llB-17A, and thePrograin
authorized under· Chapter lIB, Article XV ofthe County Code, as codified at
§§
IlB-6? through 70,
this
Executive Regulation establishes definitions, processes, and procedures to adminiSter and implement the Local
, .
Small Business Reserve
Pro~.
11~.65:01.02
Definitions
j.
:
The Defi;tritions noted
in
the County PrOCurement Law ·and related Regulation apply to
this
Regulation, unless
..
.'
stated otherwise.
(a) Broker - A person that
cond~ts
business (other than real estate, investment, or
insuran~e
sales) on
. a pass-through basis and with·respect to:
(i)
Supplies:
a
Does not own, operate, or maintain place of business in \ymch supplies ofthe general
character required under the contract
are kept
in
stock
in
the regular course ofbusiness,
a
b.. Does not regularly assume physical custody or possession of supplies ofcomparable
character to those offered to the County, or
. .
c. Exclusively aCts as a middleman
in
the provision of supplies offered to the County; or
(li)
Services: does. not. regularly maintain the capability, capacity, training, experience, and
applicable regUlatory licensing to directly perform the principal tasks of a contract with the
CountY, and acquires theseryices elsewhere, for the benefit of the County.
(b)
Combined· Dollar Value of Contracts - A Using Department's total, combined dollar value of
procurement contracts for goods, services, or const;ruction during a given particular :fiscal year.
This
has
the same meaning as "total dollar value ofprocurements" as that term is used
in
County
Code
§
llB-66(b) and (c).
(c)· Director - For purposes ofthis Regulation related to the Local Siriall Business Reserve' Program, the
term
''D~ctor''
means'the Director ofthe Office ofProcurement.
.
Page 2 of12
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MONTGOMERY COUNTY
EXECUTIVE REGULATION
Offices
,
!
!.
~)
~.
of
the
County Executive -191 Monroe Street - Rockyille,
Maryland
20850
Number
6-15"
Effective Date
.
,
"
Subject
Local Small Business Reserve Program
Originating DepartDient
Office of Procurement
(d) . Department - For purposes of
this
Regulation related to the Local
S~
Business Reserve
Program~
.
·the
tenD.
"Department" means the Office ofPrQcuremetJ.l
(e)
EmplOyxhent or Employ - The measurement ofthe number of people
a
business did or did not
employ is calculated on a "Full-:Time Equivalent" (FTE) basis.'
Any
fuli':'tUne, 'part-time" " '.
temporary, or contractUal employee, who
is
not a broker, including an employee of a temporary ..
" . help
firm
or a subcontractor, working for and receiving compensation from the business"
will
be' ,
included in detennining the number of people a business did or did not employ for a particular
period. The averaged
sum
of the specific
PTE
employment levels for a business
at
the end of each
" calendar quarter (Le., March 31, June 30, September 30 and Decetnber'31)
will
determine the
business's
annual
FIE
employment level.'
discounts, allowances, or returns.
(1)
Gross Sales":' The tptal documented value ofsales, before deducting for exPenses, customer
(g)
Ind~endently:
Owned and Operated -
~ere
those in possession of a controlling interest and
th~se
'
directing and managing the
affairs
of a business are free from the influence, control,
and
. determination ofothers. "
'
'
(h)
LOcal
Small Business -
A
for-profit business, other
than
a
broker, that:
,
,
'
(i)
has
its prlndpal
place ofbusiness in the CoUIity; ," "
is "independently owned and operated;'
(li)
(iii)
(iv)
is
not a subsidiary of another business; mid'
meets criteria,
s~e
funits, and
gro~s
sales amounts noted in'this Regulation, including
those in llB.65.01.03 below.
'
(i)
Local Small Business Reserve - Any procurement
that
is limited to responses
fr~m
Local, Small
Businesses.
G)
Local Small Business Reserve Application -
Ali'
on-line
based
application system
that
resides in the
County's web site, by which a Gontractor coJIlpletes an on-line application,' and sUbmits it tQ t1;le
, Director for certification
as
a
Local
Small BusinC$s.·
.'
,
.
N
(k)
,Local
Small Business Reserve Database A ditabase that resides in the County's web site. that
stores the list ofLocal Small Business applicants, and enables'search by the business
name~.
industry sector,- and the Coup.ty commodity code,
Page 3 of12
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MONTGOMERY COUNTY
EXECUTIVE RE·GULATION
Offices
of the
Co~ty
Executive • 101 Monroe
-Street •
Rockville,
~aryIand
2Q850
Subject
.
Local Small Busip.ess
Re~e
Program
Uriginating Department
Number
6-15
Effective
Date·
Office· ofProcurement
(1) .
Subsidiary ofAnother Business - A busiriess controlled by another business
that
owns
all
or a
majority of its
shares
or interest.
.
I1B.65.01.03 Critem..
To qualify as a "Local SmaIl Business,"
a:
business must: meefthe definition in 11B.$5.0L02 above;
provide, at a minimum, 51
%
ofmeasurable work on the contract, measured by the dollar amolmt, unless
the.D.irector specifies, in writing. a lower percentage based on
it
particular contract's.scope ofwork; and,
meet the
follo~
size
or gross sales criteria:. \
.
(a) The wholesale operations (sale of goods
m
large quantities usually for resale) ofthe business,
if
any, did not employ more
than
30 persons, or the gross sales of these business operations did not
exceed an average of $5,000,000 in its most recently completed 3 fiscal years.
(b) The retail (sale of goods in small quantities directly
to
the ultimate consumer) operations of the
business,
ifany,
di~
not employ more
than
30 p.ersons, or the gross sales of these business
.
operations did not exceed an
averag~
of $5,000,000
in
its most recently completed 3 fiscal years.
(c) The manufactming (producing goods from raw materials by hand or by
IDflChinery)
operations of
the business, if any, did not employ more than 40 persons, or the gross sales of
thes~
bl)Siness
operations did not
.
exceed an
.
average of $14,000,000
in
its most recently completed 3 fiscal years.
.
.
(d) The services operations
0:(
the business,
if
any, did not employ more
than
100 persons, or
~
gross
sales ofthese
busines~ ope~tions
did not exceed an avera.ge of $10,000,000 in its most recently
coml'leted 3 fiscal years.
. ' .
(e) The construction operations ofthe buSiness, if any, did not employ more
than
50
perso~,
or the
gross sales ofthese bUsiness·operations did not exceed an average of$14,OOO,OOO
in
its most·
recently completed 3
fiscal
years.
(f)
Gross sales for a b:usiness that has been in operation long enough
to
file
Ii
Federal income tax:
'.
statement;shall be determined by the average of gross sales amountS contained on the tax formes)
for the most recently
comple~ed
3 fiscal years.
In
the absence of a federal income
tax
statement, the
business must provide verification
that
it meets the de:furltion of a Local Small Business, including ,
the above
size
and sales criteria, through audited financial staienienfs.
If
a business
hw?
not existed
for three years,
the
employment and gross sales
av~ragtK
s) shall
be
the average for each year or part
of a year during which the business has been· in existence. For a newly formed business, the . .
determinations regarding
size
and saies criteria
will
be
based upon
then~cun:ent ~mploYment l~ve1s
.
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~l(YL~
MONTGOMERY COUNTY
'
~
,76;
EXECUTIVE REGULATION
Maryland
20~50
Offices of (he
C~mity
Executive • 101 Monroe Street •. Rockville,
Number
6-15
,
lj
L
Subject
Local Small Business Reserve Program
Uriginatiilg
JJepartment
Office of Procurement
Effective Date
.
as
ofthe time ofthe Local Small Business Reserve Application, and projected gross sales fortbat
fiscal
year.
'
'(g) Ifa busineSs
operat~s
in
m~re
than
one ofthe above-noted business operations classifiCations
(i.~.,
wholesale, retail, manufacturing, service,
and
construction), its combined business operations must
meet the above.:.stated limitation of the'more liberal size and sales criteriR- For instance, the gross
am~:ual
sales limit for wholesale businesses
is
$5 million; for retail goods, and non-construction
services the limit is $5 million; and for construction services and manufacturing the limit is $14
million. Therefore, the combined operation cannot exceed $5 million annually in average gross
sales. Further, regarding size, the employment limit for wholesale and retail btismess operations
is
30
persons versus
100
for a service operation.
Accor~g1y,
a business with both wholesale and
service classifications can have up to
100
employees.
.
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llB.65.01.04
Contract Under Local Small Busmess Reserve Program
,
(a) Except
as
provided
iri
Subsection (c) ofthis IlB.65.01.04, this RegUlation applies to
all
, procUrements by Using Department Any procurement under this Program is subject to all
requirements and
pro~edures
otherwise applicable to the procurement under the Procurement
Regulations. Except
as
otherwise provided by law, the'provisions of
thiS
Regulation supplement"
bUt do
not
replace, other provisions of, and definitions
in,
the County's Procurement Regulations
and Procurement Law.
a
(b) A Using Department must award a minimum of
20'
percent ofthe Using Department's combined
dollar value of contracts
issued
for goods, services, or construction to a Local Small Business.
A
Using Department need not designate a contract'or a solicitation as a Local S:ri1all Business Reserve
in order for it to count towards the immediately preceding requirement to 'award a minimum of
20
percent
of
the Usmg Department's combined dollar value of contracts awarded for goods,
~rvices.
'
or construction to a
~cal
Small Business. The dollar amount of a contract that is solicited through
,the regular Procurement process that is awarded to, a certified Local Small Business counts toward
the
20
percent requirement.
(c) The combined dollar value
of
procurements by 'a Using Departme:r;tt under this se9tion does not
include:
Page 5 of12'
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MONTGOMERY COUNTY
EXECUTIVE REGULATION'
.Offices
of the County Executive •
101
Monroe Street • Rockville,
MaryJan~,
20850
Subject
,
Local-8mall Business Reserve Program
Number
.6-15
Effective Date
........
Uriginating Department.
Office of Procurement
(1)
the value of any contract to which this Regulation does not apply,because of a conflict
with
a
State, federal, or local law or a grant
'req~en:tent;
.
(2)' a preexisting contract or extension(s) ofa preexisting, multi-year, con1ract
e~ecuted
by the
Coun~;
.
(3) a non-competitive contract; .
(4) a public
enti~:procurement;
(5) an emergency procurement; ,
(6) a bridge contract;
(7) ,a cooperative procurement;
(8) any waiver made under Montgomery
Coun~
Code
§
'11B-67(t);
(9) any procurement where no Locat Small
Busin~ss
is qualified orable to perform the contraCt as
, . determined by the Diiector; or ,
(10)
any single procurement that is e'stiIllated
to
exceed $10 million.
(d)
In
determinjng whether a Con1ractor
is
"qualified or able to perform the contracf' under '
11B.65.01.04(c)(6), the Using pepartment must make arecorirrnendation as of the thne
o~
a
business's offer in response to a solicitation based on a Contractor's :reputation, past performance,
business and financial
capabili~
and other factors that demons1rate the Contractor
is
capable of '
satisfying the
Coun~'
s needs and requirements for
a
specific con1ract
This
requirement is in
addition to those stated in Section 6.3 ofthe Procurement Regulations regarding
responsibili~.
"
,
(e)
In
order for a business to be eligible to respond to a solicitation under the, Local Small Business
Reserve Progr:am, a business must complete and submit the on-line vendor registration, including
the Loc'al Small Business Reserve, Application on the
Coun~'sweb site~
prior to the applicable
solicif4tion due date
and
time. The business
IIiuSt
receive the Director's certification as a Local
Small Business prior to any contract awarcl
'
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MONTGOMERY ,COUNTY
EXECUTIVE REGULATION
. '
'Offices ofthe County Executive
.1~1
Monroe Street • Rockville, Maryland 20850
Subject
Local Small Business Reserve Program
Uriginating Depa$ent
"
Number
6-15
, Effective Date '
Office of Procurement
llB.65~01.05
Procedures and Program Operations,
(a) Any procurement of
~ods,
,services, or conStruction by a USIDg J)epartnient
is
eligible for'
designation for
~~
Local Small Business
R~erve
Program,by the Using Department director, or
designee, except any procurement that
~
excluded under County Code
§
11B-66(c), the items of
whic1;t are
reite~ted
in l,lB.65.01.04(c) above;
"
"
,
"
'
(b) A
solicitation for a procurement
that
bas
been designated under the .Local Small Business Reserve
Program must be published in the same Dianner as'required for other solicitations under County
'
Code, Chapter lIB, Article III.
(~)
The Director
will
award a procurement
~ntract
desigDated as a Local Small Business Reserve in
accordance with County law and Procurement Regulations, except to the exte,nt stated otherwise in
this Regulation.
'
.
,
, (d) A business must affirm and provide supporting documentation to the Director to sJ?ow that it is a
Local Small Business as defined in County Code· § 11B-65(a) when required or requested by the
DireCtor. The Local Small Business ;must complete any required Local Small BuSiness Reserve
Application and any supporting affidaVit required by the' Director to demonstrate to the Director
that it is a Local Small Business.
'
(e) The
'Local
Small Business must
be
in compliance with applicable Federal, State
and
County laws
and regulations, including those relating to permits, licenSes, and
~ning
that
apply to operatingfue
busmess.
In
addition, the business must operate in or from physical location, and, among other
things,
referen~
by the business to a POst office box or
virtual
office
is
insufficient to substantiate a
'physical location from which the business operates.
'
a
(f)
EligJ.biiity as a Local Small Business ends
if
the business
h3s
been awarded $10 million in
th~
aggregate in County contracts and at least 10 separate contracts, as either a County prime contractor
or subContractor,
beginning
JanUary 1,2006. The' Director
will
provide 'Mitten notice to the Local
Small Business when the Local Small Business
is
no
long~r
eligible for the Program and the
Director
will
remove the Local·Small Business from the Local SmaIl Business Reserve Database. '
(g) The
ChiefAdministrative Officer may waive the application ofMoritgomery County Code, Chapter •
lIB, Article XV, to a specific procurement
ifthe
Chief Administrative Officer finds
t.b.3.t
the
applicatipn of that Article conflicts with the overall objectives and responsibilities ofthe Chapter. "
'The ChiefAd:miniStrative Officer
rp.ust
keep records on the number of waivers issue4 and the
'
reason for each waiver.
This
information must be reported to the Council by the Department in the
i
annual report on the Program imder Code
§
11 B-69(b).
'
I '
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MONTGOMERY COUNTY
EXECUTIVE 'REGULATION
Offices of the County Executive • 101 Monroe ,Street • Rockville, Maryl,and 20850
Subject '
Number
!
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Local Small Business Reserve Program
Origina~g
Department,
6-15
Effective Date
Office ofProcurement
(h)
Montgomery COlmty Code, Chapter lIB, Article XV, does not give any person, including a Local
Bmt:ill Business, any right or
status,
including standing,' to challenge the award of a contract or '
subcontract under the County procurement system. That Article
is
enforceable only through the
oversight function of the Chief Administrative Officer and the County Council
(i)'
Administration and Implementation: The following delineates the departmental responsibilities to
administer ana implement the PrOgram:
.
(i)
The Department
admjni~
and iniplements the Proiram.
It
must'cOmpile and
niamtain
a
comprehensive bidder's list ofLocal Small Business applic8.nts
that
have completed and
submitted
the
on-lihe Local Small Buslliess Reserve' Applicatioil, and post that list on the
County's web site. To accomplish these objectives, the Department will:
a.
With cooperation from the Department of Technology Serviq;:5 (DTS), develop an
Internet-based Local Small Business Reserve Database (Database) housed in the
County's web site
that
Win,
at a minimum, have the following features:
1:
2.
3.
4. '
5.
Local Small Business Reserve Program description;
Local Smail Business Reserve Applicat;ion module;
Local Small Business applicant database that can be sorted according to the
cOmmodity code used by the COunty procurement process;
Local
Small Business applica.irt profile update module; 'and
Local Small, Business applicant renewal module.
b.Maintain the Database by:
,I.
2.
Enhancing the efficiency of
the
database by incorporating advancements in
database technology;
Requiring each Local Small Business applicant, before being awarded a County
contract designated as for
this
Program, to submit'documentatiori
to
the
Department that satisfactorily demonstrates
that
it meets all of
the
requirements of
a Local Small Business as ofthe solicitation due date and time for that
procm:ement
. Page 8 ofl2
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i~f
MONTGOMERY COUNTY
'EXECUTIVE'REGULATION,
Offices of
the
County
Executive
-'101
Monroe Street,-
Rockville,
Maryiand
20850
Subject
Local Small Business Reserve Program
Uriginating Department
,Office ofProcurement
3.
Number
6-15
Effective Date
"
"
'
Tracking the number and the dollar amount of County con:tracts awarded
to
each
Local Small Business
i1;t
the'Database, in Coordination with other Using
Depart:m,ents~
,
',Removing a Local Small BUsiness
from.
the 'Local SmaIl Business Reserve
Database when the Local'Sniall Business
has
received
$10
million dollars in
County contracts in the aggregate an.d at least
10,
separate contracts, as
specified
in
1l~.65.01.05(f).
'
Removing a Local Small BusiIiess from the LoCal Small Business Reserve '
Database when the Local Small Business fails to meet the definition of Local
Small Business as defined in
this
Re~tion.
A removed Local
Sma1l.B~in~ss
'
'will
subsequently
be
added to the Local Small BtisinessReserve Database by the
Director only after the busineSs submits an appeal letter and sufficient supporting
documents to the Director within:
fifteen
(1S)
days after remo:valfrom the
list
by
the Department. The business's letter must evidenCe that the buSiness meets the
'
definition ofLOcal Small Busilless as defined in 11B.65.01.02(h) of this
sole
Regulation. The review and approval of the appeal letter
is
within
discietion ofthe Director.
4.
5.
the
6. "
c. .
Assigning a unique County Vendor Identification number to each Local Small, '
Business in the Database.
'
,
'
Market the Program arid Provide
Outreach
Efforts to Local Small Businesses by:
1.
2.
Advertising the Program in the
m~
deemed necessary by the nkector.
to,
increase the p\lblic awareness of the Program. '
Preparing a Program brochure and other necessary collateral material, and
'distributing these materials in strategic locations, as determined by the Director,
to ena?le easy and timely access by businesses in the County.
Participating in County business events, at least three ti:rD.es a year, to market the
, Program..
-
"
'WorkiD.g with
small
business
~source
wOups
in
the
~unty
such as the Chambers'
of Commerce,
Small
Business Development Centers, Women's Business
Org~tion, et~.,
to
di~seminate
Program
information to the member businesses.
as
"
3.
4.
,Page 9 of12
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MONTGOMffiRY COUNTY
EXECUTIVE REGULATION
Offices of the
~ounty
Executive • 101 Monroe Street • Rockville, Maryland 20850
NlUBber
6-15
Effective Date
0
76,/
I
!
.
Subject
. Local Small Business Reserve Program
U~ating
Department
Office of Procurement
. 5.
. Preparing a press release once a year to publicize the Program results.
d. Reporting: By November 30 each year, the Director must
~ort
to the Council on the
Local Small Busin:ess Reserve Program. This report must include: the
number~
type, and
dollar amount of contracts awarded under this Regulation during the preceding fiscal year;
the number, type, and dollar amount of each waiver from the Intemet'posting requirement
granted by the DIrector; the n,umber, type, and dollar amount of each waiver·pertaining to
the Program
that
is
gra1;lted by the Chief Administrative·Officer; infonnation about how
these numbers have changed from the preceding fiscal year; and, the .extent of outreach
(
efforts by the Director. The Director
will
work with the Office ofLegislative Oversight
to
ensure that the
d~ta
needed to conduct a comprehensive evaluation ofthe program are .
collected.
. e.
Take any other action necessary
to
ailminister or
imp~ement
this Program,
I
i
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(n)
The Using Department: The Using Department will:
a
Award a minimum of 20 percent of the Using Department's combined dollar value of
contracts issued for goods, services, or construction to Local Sman Businesses, ·except
as
noted in 11B.65.01.04(c), above.
b. Notify the Office of Procurement upon designating a procurement as a Local Small .
Business Reserve. .
c. Search the Local Small Business Reserve Database before conducting a solicitation
process and before recommending a vendor for award, in a contract that has been
designated for this Program. The Using Department
must
obtain verification from the
Director, prior to recommending
the
vendor for award, that the vendor is
an
eligible Local
Small Business.
d.
Track and report to the Director, by September 30 of each year, the procurement activities
under the Program during the previous fiscal year,
in
accordance with County Code
Section 11B-69(a) and (b), including:
2.
.
Number;
type, and combined dollar value of contracts awarded;
Number, type, and combined dollar value of contracts
that
are not included 1inder
this Regulation,
in·
accordance with CoUnty Code Section 11B-66(c);
.. !
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MONTGOMffiRY COUNTY
.
.
.EXECUTIVE"
REGULATION
.
.
.'
I
r.
j.
I
Offices of the County Executiye • 101 Monroe Street • Rockville,
Maryland
20850
SlJ-bject
. Local Small Business Reserve Program
NUIilber
6-15
Effective Date
I
,
i
Originating Department
Office of Procurement
3,
Number,
type,
and combined dollar val,ue of contracts awarded to Local Small
Businesses.
Number,
type,
4esignated under the Program but were not awarded
to
a Local Small Business,
and the reason they were not awarded to a Local Small"
B~iness.
Procedural changes
and
other related admjnistrative efforts niade to;comply with .
this Regulation, and the associated
fiscal
impact of
such
changes..
.
.
and combined'dollar
~ue
ofcontracts that were "initially
4.
5.
e. Take any"other action necessary
to
comply withthis Regulation.
(iii)
The. Department
will:
a.