1. A. Definitions.

   1. (1) In this regulation, the following terms have the meanings indicated.

   2. (2) “Nonresident firm” means a business entity that:

      1. (a) Has one office that is a principal office for the entity and is not located in the State; or
      2. (b) For an entity that has offices in multiple states, has not had a principal office located in the State for at least 6 months immediately before the date of a request for proposals.

   3. (3) “Preference” means:

      1. (a) A percentage preference;
      2. (b) An employee residency requirement; or
      3. (c) Any other law, policy, or practice that favors a resident-firm offeror over a nonresident-firm offeror.

   4. (4) Principal Office.

      1. (a) “Principal office” means a primary place of business that is staffed on a regular basis to provide the services that are requested by a unit in a request for proposals.
      2. (b) “Principal office” does not include a satellite office or an office that is minimally staffed and is not open on a regular basis to provide the services that are requested by a unit in a request for proposals.
   5. (5) “Request for proposals” means a request for architectural services or engineering services that is issued in accordance with State Finance and Procurement Article, §13-112, Annotated Code of Maryland.

   6. (6) Resident Firm.

      1. (a) “Resident firm” means a business entity that is licensed or otherwise authorized to provide architectural or engineering services in the State, and:

         1. (i) For an entity that has one office, the office is located in the State; or
         2. (ii) For an entity that has offices in multiple states, has had a principal office located in the State for at least 6 months immediately before the date of a request for proposals.
      2. (b) “Resident firm” includes a joint venture that was entered into before the date of the request for proposals for which the joint venture submits a proposal and includes one party that holds at least a 51 percent interest in the joint venture and meets the definition in §A(6)(a) of this regulation.

2. B. Conditions. A procurement agency shall apply a preference to a proposal from a resident firm if:

   1. (1) A nonresident firm is a responsible offeror determined to be the most qualified person to submit a proposal in accordance with State Finance and Procurement Article, §13-112, Annotated Code of Maryland, and the state in which the principal office of the nonresident firm is located has a preference that favors an offeror from that state to the disadvantage of an offeror from the State of Maryland;
   2. (2) A resident firm is a responsible offeror that certifies it meets the requirements for a resident firm at the same time that it submits the proposal for which the preference would apply; and
   3. (3) The nonresident firm’s state’s preference does not conflict with a federal law or grant affecting the procurement contract.

3. C. Application.

   1. (1) At the request of a unit, a nonresident firm shall provide the following documentation for the state in which the principal office of the nonresident firm is located:

      1. (a) A copy of the current statute, resolution, policy, procedure, or executive order that establishes a preference that favors an offeror from that state to the disadvantage of an offeror from the State of Maryland; or
      2. (b) A certification that the other state does not have a preference that favors an offeror from that state to the disadvantage of an offeror from the State of Maryland.

   2. (2) If a resident firm qualifies for a preference established under this section and for another preference established under State Finance and Procurement Article, Division II, Annotated Code of Maryland, the unit:

      1. (a) May not apply more than one preference to the proposal from the resident firm; and
      2. (b) Shall apply the preference to the proposal from the resident firm that is most advantageous to the resident firm.
   3. (3) If, when making a determination of qualification under a qualification-based selection, a unit determines that a proposal from a resident firm and a proposal from a nonresident firm are equally qualified, the unit may apply a preference to the proposal from the resident firm.
   4. (4) A unit may not apply a preference to a proposal submitted by a resident firm if the resident firm does not submit the certification required under §B(2) of this regulation at the same time that it submits the proposal.

Authority: : State Finance and Procurement Article, §§11-201, 11-205, 12-101, 13-102, 13-110, 13-202, and 14-401, Annotated Code of Maryland; Ch. 216, Acts of 2009; Chs. 633 and 624, Acts of 2018; Ch. 356, Acts of 2019

Effective date: July 1, 1981 (8:13 Md. R. II-5)

Regulation .01D amended effective May 6, 1985 (12:9 Md. R. 815)

Regulation .01F adopted effective July 29, 1985 (12:15 Md. R. 1526)

Regulation .02 amended effective July 29, 1985 (12:15 Md. R. 1526)

Chapter revised effective January 9, 1989 (15:27 Md. R. 3138)

Regulation .01 amended effective October 5, 1998 (25:20 Md. R. 1533); March 11, 2019 (46:5 Md. R. 310); September 18, 2023 (50:18 Md. R. 800)

Regulation .01F amended effective January 2, 2017 (43:26 Md. R. 1449)

Regulation .01H amended effective June 29, 2020 (47:13 Md. R. 643)

Regulation .02 repealed effective March 11, 2019 (46:5 Md. R. 310)

Regulation .02A amended effective February 24, 1997 (24:4 Md. R. 293)

Regulation .04 adopted effective October 12, 1996 (23:20 Md. R. 1425)

Regulation .04 amended effective January 24, 2000 (27:1 Md. R. 77); July 15, 2019 (46:14 Md. R. 623)

Regulation .04-1 adopted effective July 15, 2019 (46:14 Md. R. 623)

Regulations .05—.07 adopted effective October 2, 2000 (27:19 Md. R. 1729)

Regulation .05 amended effective April 7, 2008 (35:7 Md. R. 751)

Regulation .05B amended effective March 11, 2019 (46:5 Md. R. 310)

Regulation .07 amended effective June 29, 2020 (47:13 Md. R. 643)

Regulation .08 adopted effective January 14, 2010 (37:1 Md. R. 16)