Socioeconomic Programs Status Page Three Minority Business Enterprise (MBE) Program
CRFP's Compliance Officers monitor State-funded projects to ensure compliance with Maryland's Minority Business Enterprise (MBE) Program. The MBE Program intends to increase procurement opportunities for socially and economically disadvantaged small business owners within the State contracting marketplace. Maryland's MBE Program requires State 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 Q4 FY 2025. MBE firms received $116.8 million (21.17%) of the $551.9 million in total contract awards during this period. These amounts represent contract awards in four (4) Procurement Categories: Construction, Architectural & Engineering (A&E), Maintenance, 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 Q4 FY 2025. Through this period, African American firms received $15.4 million (2.81%) of the $551.9 million Prime contract awards. Asian American firms received $3.1 million (.57%). Women-owned firms received $89 million (16.14%). Hispanic American firms received $ 1.2 million (0.23%). MBE participation for Q4 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 Q4 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.
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