purchasing

Maryland Resident Bidder Preference

Revised August 14, 2024

Maryland Code

State Finance and Procurement

Division II. General Procurement Law

Title 14. Preferences

Subtitle 4. Miscellaneous Purchasing Preferences

§ 14.401 . Preferences for Resident Bidders or Offerors

(a)(1) In this section the following words have the meanings indicated.

(2) “Preference” includes:

(i) a percentage preference;

(ii) an employee residency requirement; or

(iii) any other provision that favors a resident over a nonresident.

(3) “Resident bidder” means an offeror whose principal office is located in the State.

(4) “Resident offeror” means an offeror whose principal office is located in the State.

(5)(i) “Services” has the meaning stated in § 11-101(t)(1) and (2) of this article.

(ii) Notwithstanding § 11-101(t)(3) of this article, “services” includes construction related services and energy performance contract services.

(b) When a unit uses competitive sealed bidding to award a procurement contract, the unit may give a preference to the resident bidder who submits the lowest responsive bid from a resident bidder if:

(1) the resident bidder is a responsible bidder;

(2) a responsible bidder whose principal office or operation is in another state submits the lowest responsive bid;

(3) the state in which the nonresident bidder’s principal office is located or the state in which the nonresident bidder has its principal operation through which it would provide supplies or services gives a preference to its residents; and

(4) a preference does not conflict with a federal law or grant affecting the procurement contract.

(c) When a unit uses competitive sealed proposals to award a procurement contract, the unit may give a preference to resident offerors if:

(1) a responsible offeror whose principal office or operation is in another state submits a proposal;

(2) the state in which the nonresident offeror’s principal office is located or the state in which the nonresident offeror has its principal operation through which it would provide the subject of the contract gives a preference to its residents; and

(3) the preference does not conflict with a federal law or grant affecting the procurement contract.

(d)(1) At the request of the unit, a nonresident bidder or nonresident offeror submitting a proposal for a State project shall provide a copy of the current statute, resolution, policy, procedure, or executive order that pertains to the treatment of nonresident bidders or nonresident offerors by:

(i) the state in which the nonresident bidder’s or nonresident offeror’s principal office is located; and

(ii) the state in which the nonresident bidder or nonresident offeror has its principal operation through which it would provide supplies or services.

(2) A unit may give a preference under this section that is identical to any of the following preferences, or any combination of them:

(i) the preference that the state in which the nonresident bidder’s or nonresident offeror’s principal office is located gives to its residents; or

(ii) the preference that the state in which the nonresident bidder or nonresident offeror has its principal operation through which it would provide supplies or services gives to its residents.

§ 14.407 . Locally grown food

(a)(1) In this section the following words have the meanings indicated.

(2) “Locally grown food” means food grown in the State.

(3) “Percentage price preference” means the percent by which a responsive bid from a responsible bidder whose product is a locally grown food may exceed the lowest responsive bid submitted by a responsible bidder whose product is not a locally grown food.

(b) The Board shall adopt regulations that require State schools and facilities to establish a percentage price preference, not to exceed 5%, for the purchase of locally grown food.

(c) A percentage price preference under this section may not be used in conjunction with any other percentage price preference established under this title.

(d) Each State school and facility shall review the procurement specifications currently used and, to the extent practicable, require the use of a percentage price preference in their purchase of locally grown food.

(e)(1) Except as provided in paragraph (2) of this subsection, this section is broadly applicable to all procurements by State schools and facilities if the locally grown food is consistent with the requirements of the bid specification.

(2) Only to the extent necessary to prevent the denial of federal money or eliminate the inconsistency with federal law, this section does not apply to a procurement by a State school or facility if it is determined that compliance with this section would:

(i) cause denial of federal money; or

(ii) be inconsistent with the requirements of federal law.