Last week, Maryland Comptroller Brooke Lierman released the Maryland Procurement Playbook. This playbook, developed in collaboration with Drexel University, aims to serve as a roadmap for leveraging public procurement as a strategic tool to drive economic growth and foster business opportunities, particularly for local and minority-owned firms.
County governments frequently must seek vendors or products needed to help deliver front-line services and, in many cases, do so under the guidance of statewide laws that cover both the State and local governments. MACo routinely seeks local flexibility and manageable compliance for areas subject to statewide procurement laws.
The Maryland Procurement Playbook is the first assessment of Maryland’s federal, state, and local procurement activity. It aims to size the state’s public procurement economy and evaluate contracting and growth opportunities for Maryland-based firms.
The Nowak Metro Finance Lab at Drexel University performed the study on behalf of Maryland’s Office of the Comptroller. During the project, the Lab engaged with Maryland-based firms, various state and local units, chambers of commerce, and regional stakeholders.
The playbook has three key objectives:
- Size the public procurement economy in Maryland and identify patterns from federal, state, and local procurement.
- Evaluate the entrepreneurial support ecosystem and procurement practices across levels of government and how this landscape shapes successful growth trajectories for diverse firms.
- Develop firm-centric* strategies to foster contracting and growth opportunities for Maryland-based and diverse firms.
Here’s a quick overview of the playbook’s key takeaways:
Key Takeaways
- Economic Impact: Maryland’s public procurement is a significant economic driver, with federal, state, and local agencies spending over $68 billion annually, accounting for 17.5 percent of the state’s GDP.
- Focus Areas: The playbook highlights significant opportunities in professional services and IT, which account for almost half of the procurement spending in the state.
Challenges
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- Fragmented Procurement System: Maryland’s procurement is decentralized across more than 300 federal, state, and local agencies, each with its regulatory framework.
- Limited Access for Smaller Firms: Smaller and minority-owned businesses face hurdles accessing procurement opportunities due to large contract sizes and complex bidding processes.
- Out-of-State Competition: Out-of-State firms capture a significant portion of procurement spending, highlighting the need for better support for local businesses.
Strategic Actions:
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- Capacity Building: Strengthen programs that support local firms, focusing on professional services and IT.
- Ecosystem Development: Create a connected and firm-centric support system that bridges the gap between buyers and local suppliers.
- Unlocking Opportunities: Remove barriers to entry for Maryland-based firms and increase their chances of securing state and federal contracts.
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