Agenda Item 23A
May 21, 2015
Introduction
MEMORANDUM
TO:
FROM:
County Council
Robert H. Drummer, Senior Legislative Attorney
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SUBJECT:
Introduction:
Bill 23-15, Contracts - Local Small Business Reserve Program -
Amendments
Bill 23-15, Contracts - Local Small Business Reserve Program - Amendments, sponsored
by Lead Sponsor Council President at the request of the County Executive, is scheduled to be
introduced on May 21. A public hearing is tentatively scheduled for June 16 at 1:30 p.m.
The Bill would:
(1) modify the types of contracts 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 defined 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 generating a significant amount of economic activity in the County in order
to
participate in the program. The Bill would also eliminate a contract awarded through an
emergency 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.
This packet contains:
Bill 23-15
Legislative Request Report
Memo from County Executive
F:\LAW\BILLS\1523 Local Small Business Reserve Program\lntro Memo.Docx
Circle #
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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: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: -'N:..:.;o=n=e_--::-_ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Council President at the request ofthe County Executive
AN
ACT to:
(I)
(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
II
B, Contracts and Procurement
Sections
11B-65, 11B-66, 11B-67,
and
11B-69
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 unqjfected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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BILL
No. 23-15
1
Sec.
1.
Sections IlB-65, IlB-66, IlB-67, and IlB-69 are amended as
follows:
Article XV. Local Small Business Reserve Program
IlB-65. Definitions.
In
this Article the following words have the meanings indicated.
(a)
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Local Small Business
means a for-profit business, other than a broker,
that:
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(1)
[generates a significant amount of economic activity] has its
principal place ofbusiness in the County;
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10
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(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.
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*
*
(c)
include:
*
*
*
IlB-66. Local Small Business Reserve Program.
*
The total dollar value of procurements by a using department does not
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*
(5)
*
*
(4) a public entity [or emergency] procurement;
an emergency procurement;
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®
bridge contract;
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cooperative procurement
any waiver made under Section IlB-67(f);
any procurement where no local small business is qualified
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[(6)]
(2)
or able to perform the contract; or
o
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BILL
No.
23-15
27
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[(7)]
ilQ)
any single procurement that is estimated to exceed $10
million.
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*
IlB-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.
*
IlB-69. Reports.
(a)
*
*
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.
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(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
fisca~
year, the number, type, and dollar
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amount of each waiver, information about how these numbers have
changed from the preceding fiscal year, and the extent of outreach
efforts.
f)
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LEGISLATIVE REQUEST REPORT
Bill 23-15
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 of a 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,
DCA,
DED
To be detennined
To be detennined
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
N/A
N/A
Grace Denno and Pam Jones, DGS
Karen Fedennan-Henry and Richard Melnick,
DCA
N/A
Not changed:
Violations may constitute a material breach of the
contract. Accordingly the County may then exercise any available
remedy, including, tenninating the contract for default.
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OFFICE OF THE COUNlY 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 of these 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
I
I recommend prompt passage ofthis 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
montgomerycountymd.gov/311
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240-773·3556 TTY
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