1. A. Applicability. The small business preference program applies to procurements by a procuring unit.

2. B. Procedures.

   1. (1) Designation of Small Business Preference Contracts. The heads of procurement units or their designees shall screen all procurements potentially eligible for a small business preference and shall determine which of those procurements shall be made under these procedures and the percentage preference to be applied. The determination shall be based on the availability of qualified, certified small businesses and other appropriate factors.

   2. (2) Solicitation Notice.

      1. (a) A published solicitation for a procurement designated for a small business preference shall include a statement that the procurement has been so designated and shall indicate the price preference percentage to be applied. A designated price preference may not exceed a base percentage preference of 5 percent of the total contract value. A 2 percent preference may be added to the base percentage preference for veteran-owned small businesses and a 3 percent preference may be added to the base percentage preference for disabled-veteran-owned small businesses.
      2. (b) The small business preference notice contained in the solicitation shall be substantially as follows:
   3. (3) Direct Solicitation. When soliciting bids for a procurement designated for a small business preference, the procuring unit shall send a solicitation or notice of the solicitation to all certified small businesses for the subject of the contract contained on the Governor’s Office of Small, Minority, and Women Business Affairs Certified Small Businesses List. When soliciting bids under the small business preference program, others selected from the business community at large, including certified minority business enterprises, shall also be solicited.

   4. (4) Evaluation. When a procurement under COMAR 21.05.02 has been designated for a small business preference, the procurement officer shall accept the most favorable responsive bid from a responsible small business if the bid does not exceed the most favorable responsive bid price received from a responsible bidder that is not certified as a small business by:

      1. (a) More than 5 percent;
      2. (b) More than 7 percent for a veteran-owned small business;
      3. (c) More than 8 percent for a disabled-veteran-owned small business; or
      4. (d) The predetermined percentage preference.

   Small Business Preference (base percentage preference of 5 percent unless otherwise provided)

   This procurement has been designated for a small business preference under COMAR 21.11.01.05. The procurement agency will accept the most favorable responsive bid from a responsible small business (COMAR 21.01.02.01B(80)) if the bid of the small business does not exceed the most favorable responsive bid received from a responsible bidder who is not a small business by: (1) more than 5 percent; (2) more than 7% for a veteran-owned small business; (3) more than 8% for a disabled-veteran-owned small business; or (4) the percentage otherwise identified in the solicitation as the small business preference.

Authority: State Finance and Procurement Article, §§12-101, 14-201—14-208, and 14-501—14-505, Annotated Code of Maryland

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

Regulations .01 and .02 repealed and new Regulations .01—.06 adopted effective July 4, 2005 (32:13 Md. R. 1117)

Regulation .01B amended effective February 23, 2009 (36:4 Md. R. 355); February 7, 2011 (38:3 Md. R. 152); March 11, 2019 (46:5 Md. R. 310); March 3, 2025 (52:4 Md. R. 221)

Regulation .02B amended effective July 15, 2019 (46:14 Md. R. 623); June 29, 2020 (47:13 Md. R. 643); March 3, 2025 (52:4 Md. R. 221)

Regulation .02C amended effective September 18, 2023 (50:18 Md. R. 800)

Regulation .04 amended effective March 11, 2019 (46:5 Md. R. 310); June 29, 2020 (47:13 Md. R. 643)

Regulation .04D amended effective February 23, 2009 (36:4 Md. R. 355); February 7, 2011 (38:3 Md. R. 152); May 13, 2013 (40:8 Md. R. 789)

Regulation .05 amended effective March 12, 2007 (34:5 Md. R. 562); July 15, 2019 (46:14 Md. R. 623); June 29, 2020 (47:13 Md. R. 643); March 3, 2025 (52:4 Md. R. 221)

Regulation .05B amended effective February 23, 2009 (36:4 Md. R. 355); March 11, 2019 (46:5 Md. R. 310)

Regulation .06 amended effective March 11, 2019 (46:5 Md. R. 310)

Regulation .06A amended effective March 13, 2006 (33:5 Md. R. 523); February 23, 2009 (36:4 Md. R. 355); September 18, 2023 (50:18 Md. R. 800)

Regulation .06B, D amended effective March 3, 2025 (52:4 Md. R. 221)

Regulation .06D, G amended effective September 5, 2022 (49:18 Md. R. 819)

Regulation .06E amended effective February 23, 2009 (36:4 Md. R. 355); May 13, 2013 (40:9 Md. R. 789)

Regulation .06I adopted effective November 24, 2014 (41:23 Md. R. 1376)

Regulation .06I amended effective April 29, 2024 (51:8 Md. R. 369)