Maryland is a great place to own and operate a small business. The state’s economy continues to outperform the country as a whole, and in 2021, Maryland’s largest Gross Domestic Product sector was state and local government. Spending taxpayer dollars comes with a great responsibility to be open and transparent.
The State of Maryland has a Capital Budget for Fiscal Year 2023 of $3.76 billion to operate over 70 agencies and departments in service to the citizens of Maryland. Funds will be used to purchase a broad range of goods and services from education, transportation, technology, and facility management to industrial and general supplies, equipment, professional services, and energy-related services.
In the State of Maryland, there is a strong commitment to ensuring opportunities exist for all qualified vendors – including small, minority, women, and veteran-owned businesses. That’s where Maryland’s three socioeconomic procurement programs come into play. They carve out both prime contracting and subcontracting opportunities on state-funded contracts.
The Governor’s Office of Small, Minority & Women Business Affairs has oversight for the administration and implementation of Maryland’s Small Business Reserve (SBR) Program, the Minority Business Enterprise (MBE) Program, and the Veteran-Owned Small Business Enterprise (VSBE) Program.
“Collectively, these programs put over $1.4 billion in the pockets of certified firms,” said Jimmy Rhee, Special Secretary of the Governor’s Office of Small, Minority & Women Business Affairs. “There is no doubt that certification adds to a company’s value proposition and opens doors to more opportunities.”
Maryland’s commitment to diversity and inclusion began over 40 years ago.
“The cascading positive impact of Maryland’s socioeconomic procurement programs on families, employees, and underserved communities simply cannot be overstated,” said Barnett Carroll, President/CEO of Aegis Mechanical Corporation. “At some point and at all times, each of the companies I own have been enrolled in one or more of these programs. We, like so many others, have benefited from their existence.”
In 1978, the Maryland General Assembly created the MBE Program as an economic development tool to combat discrimination. Over 70 state agencies/departments are engaged in this race and gender conscious program. While predominately a subcontracting program, MBEs are highly encouraged to perform as prime contractors. MBE certification is performed by the Office of Minority Business Enterprise, housed within the Maryland Department of Transportation. There is no cost and once certified, MBEs must provide annual review documents to maintain certification.
“Although the process to obtain MBE certification is strenuous, it is well worth the effort,” said Roberta Moore, President & CEO of Amoorer Inc. “As a result of my past performance, professional relationships, and being MBE certified, Amoorer is in a position to grow exponentially.”
The SBR Program was founded in 2004. It is race and gender neutral, allowing for any small business that meets the eligibility standards to join. This is a prime contracting program where small businesses compete against other small businesses instead of larger companies with greater resources.
Over 20% of all open state-funded solicitations are designated to the SBR Program. Certification is an online, same day process housed on the state’s vendor registration platform, eMaryland Marketplace Advantage (eMMA). Once certified, SBR vendors must renew annually.
“Having acquired my SBR and MBE certification has afforded me the opportunity to do business with the state by bidding on contracts, and as a dentist, I am able to provide quality care to patients who may not have otherwise been able to access quality healthcare.” said Cassandra Burnett, DDS. “I plan to continue bidding on contracts in hopes to continue my relationship with the State of Maryland as the state believes it is very important to make sure there is minority representation on their contracts.”
The newest program, enacted in 2010, is the VSBE Program. Veteran vendors must obtain veteran verification and meet small business eligibility standards to participate in the program. The online certification process is also housed in eMMA. In most cases, veteran-owned firms can be certified within 48 hours. There are 55 participating agencies/departments and a VSBE compliance manager was hired in 2021 to help advance the program.
“State contracting is a competitive arena. While these programs do not eliminate competition, they do create opportunities that might not otherwise exist,” said Carroll, a certified VSBE vendor.
Certification is not a guarantee. Firms must still compete, and the Governor’s Office of Small, Minority & Women Business Affairs has a robust offering of training webinars, business development and outreach programs, and online resources.
“We want to see Maryland’s small, minority, women, and veteran-owned businesses compete with confidence,” said Rhee. “The curriculum of our webinar series, our live Ready, Set, GROW workshops, and the curated content of our website are all designed around that goal.”
To learn more about Maryland’s three socioeconomic procurement programs and access the resources provided by the Governor’s Office of Small, Minority & Women Business Affairs, visit their website at www.goMDsmallbiz.maryland.gov
Expanding Opportunities
This article is featured in the 2022 edition of The Daily Record’s Expanding Opportunities Resource Guide for Small, Minority and Women Businesses that was published on Sept. 23. Published in conjunction with the Governor’s Office of Small, Minority & Women Business Affairs, Expanding Opportunities explores diversity, entrepreneurship and innovation in Maryland’s small business community. Read more from Expanding Opportunities or read the digital edition.
