Commission to Modernize State Procurement – an Important Initiative

The Procurement Review Group (PRG) meets every Tuesday to review contract solicitations and contract renewal options. The purpose is to maximize opportunities for Minority Business Enterprises (MBEs), small businesses and veteran small businesses to participate in state procurement contracts. DGS has stepped up its outreach to small businesses to engage them in the procurement process.

Before joining the Hogan Administration last January, I operated my own small business for more than 20 years — a management consulting and business development firm that assisted government agencies and contractors in identifying qualified small, local and minority businesses to participate in projects. I was no stranger to government procurement inefficiencies and delays.

So it was great news when Governor Hogan announced on February 10 that he had signed an executive order establishing the bi-partisan Commission to Modernize State Procurement, which will conduct a comprehensive review of Maryland’s procurement code and regulations.

The Governor’s action is another example of his commitment to changing Maryland for the better, a goal that we’ve embraced at DGS. It’s not business as usual at the department. We’re eliminating redundancies and inefficiencies and implementing innovative ideas to be more responsive to our clients, including the small businesses that want to compete for and win state contracts.

When he made his announcement, the Governor noted a lack of competition resulting in too many single-bid contracts. Procurement and Logistics and the Office of Business Programs undertook initiatives last year to increase the pool of small, local minority, woman and veteran-owned businesses competing for state contracts. Those efforts culminated in the first, annual Business Opportunities and Entrepreneurial Training Summit, which DGS and MDOT co-hosted last November.

The focus was on expanding state contract opportunities for local, minority, woman and veteran-owned businesses and prime contractors. Over 400 business people from around the State attended to learn about the more than $1 billion in available contracts from DGS and MDOT. Professional training on how to submit a winning bid was also offered.

This year, we’re building on last year’s innovative procurement and small business ideas, as well as the tremendous success and momentum from the Business Summit. In January, the Office of Business Programs hosted the first of what will be monthly, smaller industry-specific business information sessions where businesses can learn about contracting opportunities in their fields. The first session was for roofing contractors; the February session will focus on HVAC, plumbing and energy services contract opportunities.

I’m proud of the progress DGS has made in proactively reaching out to small businesses to make them aware of contracting opportunities with the state and to encourage them to compete for those contracts. At the same time, I agree with Governor Hogan’s assessment that Maryland’s procurement code and regulations are fundamentally flawed. As he said in his February 10 announcement, “Over the past year, it has become apparent that Maryland’s procurement system is a patchwork of archaic laws and processes that are inefficient, ineffective, and result in wasted taxpayer dollars.”

We look forward to the Commission’s final report, due to the Governor no later than December 1^st this year.