Recent regulation and law changes will alter what is considered a “small business” for purposes of state procurements.

The Department of General Services (DGS) published regulations for state agency procurements that will redefine business categories for manufacturers, retailers, service companies and wholesalers under the state’s Small Business Reserve Program. The regulations will also allow agencies to send bid solicitations to “a reasonable number” of certified small businesses. To view the regulations, Legislation signed into law by Governor O’Malley this month will also raise the maximum annual sales threshold for companies considered small businesses for purposes of state procurements. The current annual sales maximum of $2 million will be raised to $10 million for service companies, $4.5 million for architectural and engineering firms, $4 million for wholesalers and $3 million for retailers. View the legislation here.

Contact Ron Wineholt for further information at rwineholt@mdchamber.org.