Maryland Gov Launches Procurement Reform for DBEs, MBEs, SBRs, and VSBEs

An executive order was signed by Governor Wes Moore.

Source : Contractor News

January 22, 2025

Author : Patty Allen

Maryland Governor Wes Moore has signed an executive order to modernize the state’s procurement system, making it more efficient, transparent, and equitable. This historic reform, announced during the final Board of Public Works meeting for 2024, plans to address inefficiencies and promote socio-economic inclusion in state contracts.

The executive order introduces comprehensive contract management process improvements. It directs the Office of State Procurement (OSP) to implement a centralized contract management system that uses technology to reduce administrative burdens and streamline workflows. The platform will feature standardized templates, reporting mechanisms, and training programs to ensure consistent implementation across all state agencies.

Governor Moore focused on the importance of these changes, stating, “Ensuring that Maryland’s procurement process is efficient, fair, accessible, and transparent is crucial to our efforts to rebuild state government. This executive order will deliver significant improvements to our process flows and procurement infrastructure, which will benefit our state agencies, contractors doing business with the state, and Maryland taxpayers.”

A key component of the reform is expanding opportunities for small, minority, and veteran-owned businesses. The Governor’s Office of Small, Minority, and Women Business Affairs (GOSBA) is authorized to set agency-level procurement goals to increase participation from disadvantaged businesses. Adding to that, compliance measures have been strengthened to hold prime contractors accountable for meeting socio-economic goals.

The executive order also establishes a subcabinet on socio-economic procurement participation, which will align strategies across agencies to improve access for small and disadvantaged businesses. The overall goal is to have greater inclusivity by creating a more diverse and competitive supplier base.

Maryland’s procurement economy is substantial, accounting for 17.5% of the state’s GDP. According to the Comptroller of Maryland, more than $68 billion in contracts were awarded to Maryland-based businesses in 2024 alone. Of these, $1.6 billion went to certified minority or disadvantaged business enterprises, marking a $168 million increase from 2023.

These reforms strive to further increase participation, with 79% of procurement items in 2024 including Minority Business Enterprise (MBE) or Disadvantaged Business Enterprise (DBE) goals, up from 64% in 2023 and 38% in 2022.

The order includes measures to improve accountability and transparency. Contractors who fail to meet socio-economic goals may face penalties, and GOSBA will implement training programs for procurement officers to make sure they understand their roles in achieving these objectives.

Strengthening the state’s procurement workforce is another priority. The OSP will work with the Department of Budget and Management (DBM) to assess staffing needs and develop training programs to build a robust talent pipeline. Continuous learning requirements will help procurement officers stay updated on policies and best practices.

Maryland plans to utilize cutting-edge technology, such as artificial intelligence and machine learning, to optimize procurement processes. The executive order directs agencies to look at innovative solutions like automated reporting and digital tools to streamline contract management and market research.

The order reaffirms Maryland’s commitment to its four Historically Black Colleges and Universities (HBCUs): Bowie State University, Coppin State University, Morgan State University, and the University of Maryland Eastern Shore. Agencies are directed to prioritize HBCUs for interagency agreements and to meet a 5% utilization goal for these institutions.

With the new executive order, Maryland plans to:

  • Increase competition in the procurement marketplace
  • Shorten procurement timelines for mission-critical projects
  • Enhance socio-economic participation in state contracts
  • Build a more skilled and diverse procurement workforce

State Chief Procurement Officer Wallace D. Sermons, II, focused on the transformative nature of the reforms. “I am proud to celebrate the signing of this landmark executive order, which outlines bold initiatives that redefine how we do business and prioritizes transparency, efficiency, and equity to ensure that every taxpayer dollar works harder for our communities. This is not just about modernizing processes; it’s about creating opportunities, fostering innovation, and building a procurement system that reflects the Moore-Miller Administration’s values,” Sermons said.

Category : Disabled Veteran Businesses Disadvantaged Business Enterprises Minority Business Enterprises Veteran Business

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