A proposal to give a preference to St. Mary’s County businesses in the county’s procurement process was met with mixed reviews at a public hearing Tuesday.
If enacted St. Mary’s County would be the first in the region with a local business preference, although Charles County is considering such a move. Montgomery County has a more detailed process, although the proposal on the table in St. Mary’s is simplified, according to Chief Financial Officer Elaine Kramer.
A local vendor preference of 10 percent (with a maximum $50,000 extra cost to the county) is included under the proposal. Implicit in the decision, Kramer told the commissioners during an earlier discussion, was the willingness of the county to pay more for a contract to keep the money in the county.
But during the public hearing, Wayne Abernathy of Mechanicsville, a retiree, said “I will save a dollar any way I can,” noting he was willing to purchase something cheaper at Walmart in Waldorf on his next trip there. He called the proposal a “welfare system for business” and added, “It is not the taxpayers’ business to do that.” Abernathy criticized the county for not presenting a cost-benefit analysis on the proposal.
But, another hearing speaker, Kim Bowes of California, said studies have shown that of a $100,000 procurement to a local business, $68,000 stays in the county. For an out-of-county Maryland business that shrinks to $32,000 and for an out-of-state business it falls to $13,000. Even with the 10 percent preference, she said the county gains on that deal.
The other two hearing speakers, local businesswoman Agnes Butler and Laura Clark of Leonardtown, supported Bowes’ position
During the hearing Commissioner Daniel Morris (R: 2nd) continued to express concern that a local resident with an out-of-county business would not be able to benefit from the proposal. Kramer said that could be accommodated but would require a more complicated procurement policy than was proposed.
County Attorney George Sparling earlier said a sole proprietor living in the county but having a business address outside the county would be allowed to take advantage of the proposed process. The proposal also allows contracts to hire county subcontractors and still retain the preference.
The proposal also changes the threshold for a bid requirement from $15,000 to $25,000 and reduces the procedure requirements for projects under $25,000. Small businesses would register to receive e-mails of procurement proposals and could deal directly with the department making the proposal. Kramer said, however, that all such bids would have to be ratified by the procurement office to insure the rules were followed.
For procurement from $2,500 to $15,000 a request for quotations would be issued by the county and small businesses could respond with a quote, reducing the time and the amount of paperwork for a bid.
Kramer c
<!–
–>
