Miles SmithLegislation has passed in Maryland that intends to make the way the state purchases goods and services more efficient, transparent and inclusive.
House Bill 500, or the Procurement Reform Act of 2025, recently passed during Maryland’s 477th legislative session.
The Maryland Office of State Procurement is heralding the new law as a vital step toward economic growth and government accountability.
Under the new legislation, the Department of General Services will no longer purchase commodities or supplies for every state executive department, nor will it serve as the control agency for information technology, telecommunication and cybersecurity systems.
Features of the legislation include:
- Requiring contractors awarded covered procurements over $1 million to establish internship and apprenticeship programs.
- Establishing a procurement preference program for companies that become a “Good Labor Practices Certified Business.” Certified businesses can be awarded a contract where their price is at least 5% higher than the lowest bid.
- Agencies can require contractors to submit a workforce diversity plan before the award of any procurement contract valued more than $500,000. Any contract valued at more than $250,000 can be required to submit a supplier diversity plan.
- Establishes a veteran-owned small business reserve program. This feature allows veteran-owned businesses to establish themselves as prime contractors.
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