Local Preference

The Calvert County Department of Finance & Budget, Procurement Division, launched the Resident Business Percentage Preference Program (RBP3) on Oct. 1, 2024. RBP3. This program is designed to support local businesses by providing a competitive advantage when bidding on county procurement contracts. Find past meeting information at www.calvertcountymd.gov/meetings.

The Local Business Preference Program offers a percentage-based preference to Calvert County-based businesses in the bidding process, giving resident businesses a 5% deduction on their bid price when competing for contracts valued below $30,000, and similarly, 5% up to $25,000 on contracts over $30,000. The program applies to both formal and informal solicitations for goods and services by the county.

To qualify, a business must have its principal office located in Calvert County. Businesses operating outside the county are considered non-resident businesses and are not eligible for the preference.

The program does not apply when federal or state law prohibits local preferences, or when contracts are awarded through cooperative agreements or emergency purchases. 

The Local Business Preference Program is the culmination of a multi-year effort by the Board of County Commissioners (BOCC) to ensure local businesses have a fair opportunity in the competitive bidding process. From 2022 to 2024, nonresident businesses prevailed in both participation and the amount awarded in county contracts, highlighting the need for a policy to support local entrepreneurs. 

The program was developed with input from members of the public, as well as local business groups, including the Calvert County Chamber of Commerce, Southern Maryland Minority Chamber of Commerce and the Calvert County Minority Business Alliance, to ensure it aligns with the needs and concerns of the local business community. The BOCC approved the program on Sept. 24, 2024.

Any increased costs associated with implementing the program are expected to be offset by the increased tax revenues generated from thriving local businesses, including personal property and income taxes.

Purpose:

 To establish a preference for resident businesses in the award of formal bid solicitations, in accordance with Title 6, §6-105 of the Code of Public Local Laws of Calvert County, Maryland, which allows a percentage preference to be given to resident businesses, except where mandated otherwise by Federal or State Law.

Objective:

To promote economic growth and support resident businesses by implementing a RBP3 for Calvert County. This policy is intended to bolster the County’s economic growth and support the creation and retention of employment opportunities within the County. 

Solicitation Types and Preface Breakdown:


Informal Solicitation – $10,000 to $29,999.99: Generally, an informal solicitation to be conducted by the Procurement Office is required for purchases between $10,000 and $29,999.99, individually, and collectively, annually and are initiated through:

  • Request for Interest (RFI)
  • Request for Quote (RFQ) 
  • Request for Proposals (RFP)

Preference Mechanism: If a resident business is involved in the bid process, and their bid is not the lowest, the resident business shall be allowed a 5% local bid preference.

If the resident business declines, the contract will be awarded to the lowest non-resident business.

If there is more than one resident business, the lowest resident business will be selected for the local bid preference. If this bidder declines, the process will continue until the resident business list is completed.  

Formal Solicitation – $30,000 and over: Generally, formal solicitation procedures are required for purchases that exceed $29,999.99, individually, and collectively, annually and are initiated through:

  • Invitations to Bid (ITB) 
  • Request for Interest (RFI)
  • Request for Proposals (RFP)

Contracts using said methods are awarded at a regularly scheduled meeting of the Board of County Commissioners or by the official authorized to contract for the County.

Preference Mechanism: If a resident business bidder is involved in the bid process, and their bid is not the lowest, the resident bidder may be allowed a 5% local bid preference, not to exceed $25,000.  

If the resident business declines, the contract will be awarded to the lowest non-resident business.

If there is more than one resident business, the lowest resident business will be selected for the local bid preference. If this bidder declines, the process will continue until the resident business list is completed. 

Implementation:

This ordinance shall be implemented in accordance with the guidelines established by the Calvert County Government Procurement Office, ensuring fair and transparent bidding processes while promoting the economic interests of local businesses.

Exclusions:

  • This ordinance does not apply where Federal or State Law mandates otherwise (to include Grants).
  • This ordinance does not apply when piggybacking other jurisdiction's competitively bid contracts. 
  • Purchases made under a cooperative agreement.
  • The procurement office will implement and monitor compliance with this policy.
  • The policy will be reviewed annually to assess its effectiveness and adjustment as necessary.
  • The Board of County Commissioners may authorize exceptions to this policy in cases where it is deemed in the best interest of the County.

Waiver of Bid Requirements:   

Procurement has sole discretion to waive competitive bidding requirements in the following situations:

Immediate need. It can be demonstrated without question that the requiring department could not have foreseen the required purchase in sufficient time for normal purchasing procedures to be used.

Emergency Purchases. Life will be endangered, property will be destroyed, or considerable costs will be incurred because of events beyond the control of the department if the procurement is not completed without delay.

At the direction of the County Administrator when other factors need consideration. 

Definitions:

  • Emergency Purchases: Constituted as an emergency expenditure affecting the health, safety, or welfare of the County, its residents, or landowners. A department’s failure to plan properly for an expenditure is not deemed an emergency. For an emergency purchase in excess of $29,999.99, the purchase is exempt from the formal bid procedures and authorization to contract is granted to the department with the provision that it will be brought to the attention of the Board at their next regularly scheduled meeting for “after-the-fact” approval and the department shall publish an explanation of the circumstances constituting it as an emergency in two (2) local newspapers for two weeks in accordance with Title 6 of the Code of Public Laws, as amended from time to time.
  • Evaluation Committee: A group of at least three (3) County employees with knowledge of the commodities or services sought in a Request for Proposal (RFP) to evaluate and select bid proposals for award.
  • Formal Solicitation ($30,000 and over): Generally, formal solicitation procedures are required for purchases that exceed $29,999.99, individually and collectively, annually and are initiated using Invitations to Bid (ITB) and Request for Proposals (RFP). Contracts using said methods are awarded at a regularly scheduled meeting of the Board or by the official authorized to contract for the County. Additional purchases may require formal solicitation procedures at the discretion of the Procurement Office Division Chief.
  • Invitation to Bid (ITB):  A document that solicits bid submissions from prospective contractors through for a specific product or service through a formal bidding process. An ITB involves the issuance of a formally advertised solicitation that calls vendors to submit a sealed bid for a product or service with clear specifications and adequate available competition.
  • Nonresident Business: A business whose principal office is outside the County.
  • Principal Office: The office, in or out of the state, where the principal executive office or a domestic or foreign corporation is located and that is designated in the annual report or application for authority to transact business in the state. A Post Office box cannot be used to establish a local or principal address.
  • Piggyback:  Procuring goods or services without informal or formal bid procedures by utilizing another public entity’s currently active, formally solicited, and awarded contract(s). The “piggyback” will be by all the terms and conditions, unit prices, time frames, and other criteria as included in the different public entity’s formal solicitation.
  • Request for Proposal (RFP): A Request for Proposal (RFP) is described as a request for products or services for which factors other than price are a main consideration for award such as qualifications, technology used, and experience. Interviews or presentations may also be held as part of the evaluation. An RFP is generally used to solicit professional services such as architecture, professional engineering, etc.
  • Request for Quote (RFQ): A Request for Quote involves the issuance of an informal solicitation that calls to vendors to submit an emailed or hand-delivered quote for a product or service with clear specifications and adequate available competition.
  • Resident Business: A business whose principal office, as defined, is in Calvert County. 

Conclusion:

The Local Preference Procurement Policy is designed to foster economic development by providing local businesses with a fair opportunity to compete for County Government contracts. By implementing this policy, Calvert County Government aims to strengthen its local economy and support its business community.