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Changes to Maryland's Minority Business Enterprises Program

In 2012, the Maryland General Assembly extended the MBE Program for 4 more years and included several key components to the existing law.  The extended MBE Program in Maryland took effect on October 1, 2012.

One of the major changes allows for an increase in flexibility related to the overall aspirational statewide MBE goal by allowing the Governor’s Office of Minority Affairs to evaluate and set an overall goal every two years through Code of Maryland Regulation, after consultation with Maryland Department of Transportation and the Office of the Attorney General.  Subgoals would also be reevaluated every two years.  In the event a delay occurs in establishing the overall goals or subgoals, the previous year’s overall goal or subgoal will apply.

Further, some of these changes will affect prime contractors.  Prime contractors will be subjected to corrective actions for failure to make good faith efforts to comply with MBE contract goals.  The new MBE allows the Governor’s Office of Minority Affairs to issue regulations to govern how the work MBE prime contractors will count towards contract goals.  Additionally, an MBE Participation Schedule must be made a part of the executed contract and prohibits the replacement of a listed MBE firm after contract execution except for good cause shown.  Any changes require approval from the head of the agency with written consent of the MBE liaison. 

The new MBE Program extends through July 1, 2016.  For additional information related to Maryland’s Minority Business Enterprise Program, contact Michael Siri at siri@bowie-jensen.com or by phone at 410-583-2400.

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