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Maryland governor issues wide-ranging procurement reform executive order

Governor Wes Moore of Maryland has signed an executive order reforming a wide array of procedures relating to the Office of State Procurement (OSP). The order follows a wide-ranging stakeholder engagement series conducted by the State's Department of General Services (DGS) with the aim of gathering information that could be used to bolster the levels of efficiency, transparency, and equity in OSP.

The reforms contained in the executive order include: requiring OSP, the Maryland Department of Transportation (MDOT), and the Maryland Department of Information
Technology (DoIT) to develop and use a "comprehensive Statewide centralized contract management process and platform"; designating procurements as Small Business Reserve (SBR) procurements if market research indicates two or more small businesses can perform or provide on them; strengthening compliance mechanisms for participation goals relating to minority business enterprises (MBEs) and veteran-owned small businesses (VSBEs), including procedures for witholding payments to primes if it is warranted; requiring the issuance of regulations that can make determinations that given primes have "persistently failed to meet contract goals" without mitigating factors; establishing a Governor's Subcabinet on
Socioeconomic Procurement Participation; and more.

Procurement awards to MBEs and DBEs totaled roughly $1.6 billion in calendar year 2024, up by $168 million from the previous calendar year. The executive order seeks to continue and improve on this record of MBE and DBE participation.

"Ensuring that Maryland's procurement process is efficient, fair, accessible, and transparent is crucial to our efforts to rebuild state government," said Gov. Moore in a statement.

Read the press release from the Governor's office at https://governor.maryland.gov/news/press/pages/governor-moore-signs-executive-order-to-modernize-and-strengthen-equitable-access-to-state-procurement-system.aspx.

Read the executive order at https://governor.maryland.gov/Lists/ExecutiveOrders/Attachments/74/EO%2001.01.2024.38%20Delivering%20a%20More%20Efficient%2c%20Equitable%2c%20and%20Competitive%20Procurement%20System%20for%20Maryland_Accessible.pdf.