PRINCE GEORGE’S COUNTY LOCAL PROCUREMENT REFORM ACT
Written & Researched by Richard DeShay Elliott
Prince George’s County, the wealthiest majority-Black county in the United States of America, is in a unique position to benefit both the multiracial working class & business owners of colors. Prince George’s County has no enforcement mechanisms currently in place to ensure that local, Black and brown-owned, women-owned, co-operatives, or other businesses with higher local economic velocity are given preference.
Legislation is needed to ensure that businesses who serve our County’s residents and are operated by County residents are given preference to ensure we get the most out of every purchase. Local procurement generates economic velocity, by multiplying our government investment back into the community to bolster small businesses, create job opportunities, and maximize tax revenue without raising taxes. Businesses based outside of Prince George’s County or outside of Maryland reduce our investment and thus, should pay a surcharge for our lost revenues. With this legislation, we aim to partner our local government with our local businesses and ensure the long-term economic vitality of our County.
This legislation will;
- Establish a tiered system for rating in-county contracts, for the purpose of giving preference to co-operative businesses, renewable businesses, and companies with more equitable pay distribution
- Most points on scale is guaranteed the contract:
- 3 points for co-operative businesses
- 3 points for 100% of employees residing in Prince George’s County
- 2 points for 100% of employees residing /80% Pr
- 1 point for majority of employees being people of color
- 1 point for Maryland based businesses
- 2 points for minority-owned/women-owned businesses
- 3 points for a less than 3 to 1 pay ratio between company owner’s salary and average employee salary (requires employees>=5)
- 2 points for a less than 5 to 1 pay ratio between company owner’s salary and average employee salary (requires employees>=4)
- 4 points for within 10 miles of purchasing agency
- 3 points for within 25 miles of purchasing agency
- 2 points for within 50 miles of purchasing agency
- 1 point for within 100 miles of purchasing agency
- 2 points for 100% renewable energy locations
- 1 point for 50% renewable energy locations
- All legislation within Prince George’s County is required to have an economic impact, racial impact, housing impact, and traffic impact study.
- Within all legislation with an economic impact of over $49,999, a contract search with the above criteria will be required by law, with public transparency of all submitted contracts and grading scale.
- All contracts with total valuation in excess of $24,999 are required to have 40% minority participation in employment OR ownership. Preference will be given to contractors with majority of their employees currently residing in Prince George’s County.
- We are losing tax revenue by partnering with out of county/out of state contractors. If contracts are awarded to out of county/out of state contractors, these contractors should be held financially liable to repay the general fund of the Prince George’s County budget for 1.1 times the estimated economic velocity lost due to the contract going to non-county contractors. This tax will be henceforth referred to as the Lost Economic Impact Surcharge (LEIS).
- Failure to remit due payments for LEIS will result in a 2 year ban on applying for contracts with the Prince George’s County government. Failure to remit payments with interest, within 2 years will result in a permanent ban for contracts.
- The Comptroller’s Office & the Maryland General Assembly House Subcommittee on Local Revenues will review these tax payments and provide updated formulas on economic velocity annually.
- Prince George’s County Public Schools is currently planning a public-private partnership to build several public schools, the first time a public-private partnership has been used for this purpose within the United States. If the public-private partnership is approved, this legislation will mandate that 80% of the hiring be from current County residents, that prevailing wage laws will be mandated into all aspects of the public-private partnership, that all workers working upon the contract are guaranteed union protections under the local American Federation of State, County and Municipal Employees, and that all expenditures under the contract in excess of $10,000 will be subject to review by the Comptroller’s Office & the Maryland General Assembly House Subcommittee on Local Revenues.