MDTA Board Meeting Materials

Socioeconomic Programs Status Page Three

agencies to structure their procurements in a manner that allows 29 percent of the agency's total annual expenditures on procurement contracts to be paid directly or indirectly to certified MBE firms as prime contractors or subcontractors. Table 2 depicts total MBE participation by Contracting Areas for Q3 FY 2025. MBE firms received $34.4 million (21.75%) of the $158.4 million in total contract awards during this period. These amounts represent contract awards in four (4) Procurement Categories: Construction, Architectural & Engineering (A&E), Information Technology (IT), and Services, out of the six (6) Procurement Categories: Construction, Architectural & Engineering (A&E), Maintenance, Information Technology (IT), Services, and Supplies and Equipment. Table 3 depicts MBE awards by Minority Business Enterprise (MBE) classification and procurement category for Q3 FY 2025. During this period, African American firms received $7.9 million (5.05%) of the $158.4 million Prime contract awards. Asian American firms received $1.3 million (.87%). Women-owned firms received $24.4 million (15.42%). Hispanic American firms received $ 640,750 (0.40%). MBE participation for Q3 FY 2025 is calculated by dividing the total MBE contract award dollars by the total contract award dollars. Certified Small Businesses (CSBs)/Small Business Reserve (SBR) Program The Certified Small Businesses (CSBs)/Small Business Reserve (SBR) Program is administered by the Division of Procurement (DOP). CRFP is responsible for reviewing and analyzing State- funded procurements to ensure compliance with Maryland's SBR Program. Maryland's SBR Program enables small businesses to participate as prime contractors on State-funded contracts by creating a unique marketplace where small businesses compete against one another rather than larger, more established companies. The SBR program is a race and gender-neutral program. Minority status is not a criterion for participation in the SBR Program. (See Md. Code Ann., State Fin. & Proc. Art. §14-501.) On January 6, 2021, Governor Hogan signed Executive Order 01.01.2021.01 to increase small business participation in State procurements. The Executive Order enhances the SBR Program by directing all procurements between $50,000 and $500,000 to the SBR Program unless the procurement meets defined exemptions. Initially, the State established a 15% SBR utilization goal. However, effective September 2024, the SBR goal was increased to 20%, and the SBR awards now include Direct Vouchers and P-Card purchases. The CSB/SBR firms' participation goal for Q3 FY 2025 is calculated by dividing the total CSB/SBR designated and non-designated awards by the total procurement awards. Utilization is calculated by dividing the total CSB/SBR-designated and non-designated payments by the total payments to all prime vendors. Table 4 illustrates the utilization of the Certified Small Businesses/Small Business Reserve Program for Q3 FY 2025, specifically for Awards. SBR-designated firms received $1.6 million of the $161.4 million in procurement awards during this period. Non-SBR-designated awards for this quarter were over $2.2 million. MDTA's CSB/SBR awards totaled over $3.9 million (2.42%) for all SBR awards (designated and non-designated).

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