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Maryland Procurement Alert, January 2013
DGS Modifies Contracts to Charge 1% Processing Fees for New eMaryland Marketplace, Requires Fees In New Solicitations
Contractors should get ready for a fee, required by DGS, for using new eMaryland Marketplace.
The Department of General Services ("DGS") has begun notifying existing contractors that a fee of 1% of the contract value must be paid by the contractor in order to compensate for the costs of DGS' revamped eMaryland Marketplace system. The requirement, excerpted in part, is from a DGS purchase order issued December, 2012.
1. CONTRACTOR SHALL PAY A PROCESSING FEE TO THE STATE IN THE AMOUNT OF ONE PERCENT (1%) OF THE TOTAL CONTRACT SALES. THE PROCESSING FEE IS CALCULATED BASED ON ALL SALES TRANSACTED UNDER THE CONTRACT, MINUS, ANY RETURNS OR CREDITS. THE PROCESSING FEE SHALL NOT BE CHARGED DIRECTLY TO THE CUSTOMER, E.G., AS A SEPARATE LINE ITEM, FEE OR SURCHARGE, BUT SHALL BE INCLUDED IN THE CONTRACTS UNIT PRICES.
2. THE PROCESSING FEE SHALL BE SUBMITTED TO THE DEPARTMENT OF GENERAL SERVICES . . . WITHIN TEN (10) CALENDAR DAYS FOLLOWING THE END OF EACH CALENDAR MONTH ALONG WITH A MONTHLY USAGE REPORT DOCUMENTING ALL CONTRACT SALES. . .
3. FAILURE TO REMIT PROCESSING FEES IN A TIMELY MANNER OR REMITTANCE OF FEES INCONSISTENT WITH THE CONTRACT'S REQUIREMENT MAY RESULT IN THE STATE EXERCISING ALL RECOURSE AVAILABLE UNDER THE CONTRACT INCLUDING, BUT NOT LIMITED TO, A THIRD PARTY AUDIT OF ALL CONTRACT ACTIVITY. . .
BPW Hires Treya Partners to Perform Procurement Process Study
The Board of Public Works ("BPW") approved an award to Treya Partners for a six-month procurement study to (1) analyze State procurement laws and policies and agency business processes; (2) design improved business processes; and (3) provide a plan for the State to implement the change process.
Treya partners is currently conducting an online survey of State of Maryland personnel with regard to State procurement at the following link: http://bit.ly/VNkWWU Notably, Treya asks survey takers whether "the State's contract appeals process for vendor disputes generally results in a fair and equitable outcome for all parties concerned," and how well the procurement system achieves the various purposes set forth in State Fin. & Proc. § 11-201. As yet, Treya has not conducted a similar focusing on surveying of State vendors.
In October 2011, Treya provided a Procurement Assessment for the State of Colorado that can be viewed at the following link (PowerPoint format): http://bit.ly/13eHu8C
Pending Procurement Legislation for 2013 Regular Session of The General Assembly
HB0019 - Minority Business Enterprise Waiver Disclosure Act
Altering the frequency and content of specified reports on waivers of minority business enterprise goals as submitted by specified units to the Board of Public Works and the Governor's Office of Minority Affairs; and requiring the Governor's Office of Minority Affairs to post specified reports on its Web site.
HB0020 - Minority Business Enterprise Program - Participation Subgoals - Prime Contractors
Requiring, under specified circumstances, a unit of State government to count the dollar value of a procurement contract made directly or indirectly with a prime contractor that is a certified minority business enterprise toward meeting the certified minority business enterprise participation subgoal on the contract.
HB0024 - Minority Business Enterprises - Time Frame and Monitoring of Payments
Requiring the Board of Public Works to adopt specified regulations that require a unit to authorize payment to a prime contractor within a specified number of days after completion of the work required by contracts containing minority business enterprise participation goals; and requiring the Board, in conjunction with the Governor's Office of Minority Affairs, to create a process for monitoring specified payments.
HB0025 - Minority Business Enterprises - Board of Public Works - Regulations
Requiring the Board of Public Works to adopt regulations that impose a penalty on a prime contractor if minority business enterprises listed in a successful bid do not participate to the extent listed in the project; and requiring the Board to adopt regulations to require a unit to provide notice to all subcontractors of record for a minority business enterprise procurement contract when payment is made to the prime contractor.
HB0026 - Minority Business Enterprise Program - Former Subcontractors Transitioning to Prime Contractors
Requiring the Board of Public Works to adopt regulations under the minority business enterprise program that recognize and give credit to former subcontractors that submit bids as prime contractors on specified procurement contracts.
HB0033 - Minority Business Enterprise Directory - Contract Amount
Requiring the minority business certification agency to include the total dollar amount paid by a unit to a minority business enterprise under each contract in a specified minority business enterprise directory.
HB0048 - Minority Business Enterprises - Not-for-Profit Entities
Excluding a not-for-profit entity organized to promote the interests of physically or mentally disabled individuals from a specified definition of minority business enterprise; prohibiting specified contracts from being counted as part of a unit of State government's total dollar value of procurement contracts; etc.
HB0050 - Minority Business Enterprise Certification - Cap on Personal Net Worth
Increasing to $3,000,000 the amount of the cap on the personal net worth requirement for certification as a minority business enterprise.
HB0053 - State Procurement - Use of State Residents and Businesses
Requiring a State procurement unit to adopt regulations concerning the use of State residents and businesses for specified procurement contracts; requiring that the regulations require a unit to make a determination before awarding each procurement contract concerning resident bidders or resident offerors; requiring that the regulations encourage a nonresident bidder or nonresident offeror that is awarded a procurement contract to employ State residents and use State businesses in the performance of the procurement contract; etc.
SB0047 - Procurement - Maryland Buy American Steel and Manufactured Goods Act
Altering the Maryland Buy American Steel Act to include American manufactured goods; requiring a public body to require contractors and subcontractors use or supply only American manufactured goods for procurements, as specified; defining a term; requiring a public body to give a specified notice; requiring the Board of Public Works to adopt regulations regarding the granting of a preference for the use of American manufactured goods; etc.