COMAR 101, FAR 101 and Board Policy 101

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COMAR 101, FAR 101 and Board Policy 101

•  
•  
• Rick Gay, CPPO, RSBO
• Baltimore County Public Schools
• Mark Miller, CPPO
• Wicomico County Public Schools
• and Kathy Carmello
• Harford County Public Schools
• Green Street Panel

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Seminar Objective

• An overview of the Code of Maryland
• Regulations, the Federal Acquisition
• Regulations and various Board of
• Education policy impacts on the school
• business official. What is the difference
• between a policy, regulation and law? This
• session will explore recent legislative
• initiatives and what their impact can and
• will be on school boards.

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2009 Maryland Legislative Session

• Chapter 198/HB 91/SB 132
• DEPARTMENT OF GENERAL SERVICES RENOVATION OF
  HISTORIC STRUCTURES PROCUREMENT EXEMPTIONS
• Exempting the renovation of specified historic
  structures by the Department of General Services
  from specified provisions of the State
• procurement law.
• EFFECTIVE JULY 1, 2009
•  
• Chapter 216/SB 187/HB 124
• STATE PROCUREMENT BUNDLING OF PROCUREMENTS
• Prohibiting a unit of State government subject to
  the State procurement law from bundling a
  procurement, limiting the number of
• competitive bidders or offerors, or limiting
  specified participation to a predetermined group
  of bidders or offerors for the purpose of
• precluding or limiting participation by specified
  entities under specified circumstances etc.
• EFFECTIVE OCTOBER 1, 2009
•  
• Chapter 293/HB 389/SB 611
• MINORITY BUSINESS ENTERPRISE PROGRAM
  PROHIBITIONS

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2009 Maryland Legislative Session

• Chapter 677/HB 533
• Cooperative Purchasing Agreements - Requirements
  and Expansion of Use
• Requiring that specified procurement contracts
  entered into by State and local entities include
  specified provisions that facilitate other
• State, local, and notforprofit entities to
  participate in the contracts authorizing State
  and local entities to enter into specified
  agreements
• for the cooperative or joint administration of
  programs with other State or local entities
  authorizing local entities to participate in
• specified State or local contracts if specified
  determinations are made etc.
• EFFECTIVE JUNE 1, 2009
•  
• Chapter 223/HB 641/SB 211
• MINORITY BUSINESS ENTERPRISE PROGRAM
  PARTICIPATION BY RACE OR GENDER
• Authorizing a woman who is also a member of an
  ethnic or racial minority group to be certified
  in that category in addition to the gender
• category authorizing a woman owned business to
  participate in individual procurement contracts
  as either a womanowned business or a
• Business owned by a member of an ethnic or racial
  minority group for specified purposes within the
  Minority Business Enterprise
• Program altering a definition under the Minority
  Business Enterprise Program etc.
• EFFECTIVE OCTOBER 1, 2009

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2009 Maryland Legislative Session

• Chapter 715/HB1297
• PROCUREMENT MINORITY BUSINESS ENTERPRISES
  PRIME CONTRACTORS
• Requiring the Board of Public Works to adopt
  regulations that promote and provide for the
  counting and reporting of certified minority
• business enterprises as prime contractors
  requiring specified units to include information
  in a specified report to the Governors Office of
• Minority Affairs concerning the participation of
  minority business enterprises as prime
  contractors or as subcontractors in specified
• procurements etc.
• EFFECTIVE OCTOBER 1, 2009
• Chapter 328/HB 1336/SB 946
• MINORITY BUSINESS ENTERPRISE PROGRAM REPORT TO
  JOINT COMMITTEE ON FAIR PRACTICES
• Requiring each unit of the State to submit a
  specified report regarding the Minority Business
  Enterprise Program to the Joint Committee on
• Fair Practices within 90 days after the end of
  the fiscal year.
• EFFECTIVE OCTOBER 1, 2009
•  
• Chapter 283/SB 568

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ARRA TAX CREDIT BONDS

• PK12 Designated 24.4 Billion
• Qualified Zone Academy Bonds (QZAB)
• 2 Billion
• Modernization and repair (cannot be used for new
  construction)
• Requires 10 private partnership
• Qualified School Construction Bonds
• 22 Billion (11 Billion for 2009 and 2010)
• Purpose PK12 Public School Facility
  modernization, repair or construction
• According to 26 USC 54A, 100 of the proceeds
  should be spent within 3 years of issuance of the
  bonds, and there should be a binding commitment
  with a third party to spend 10 of the proceeds
  within 6 months of issuance. This applies to qzab
  AND qscbS

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ARRA TAX CREDIT BONDS

• Build America Bonds
• No limit on its use, but only available for bond
  issues in 2009 and 2010
• Assist state and local governments in financing
  capital projects at lower borrowing costs to
  stimulate the economy and create jobs.
• States and local governments can issue Build
  America Bonds as taxable bonds in 2009 and 2010
  to finance any capital expenditures for which
  they otherwise could issue tax-exempt
  governmental bonds.
• State and local governments receive a direct
  federal subsidy payment for a portion of their
  borrowing costs on Build America Bonds equal to
  35 percent of the total coupon intrest paid to
  investors.

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Federal Requirements in the use of ARRA Funds

• Buy American
• Department of Commerce
• Davis Bacon
• Department of Labor

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Buy American

• Must comply with U.S. obligations under
  international agreements, including the Free
  Trade Agreements (e.g. NAFTA) and the World Trade
  Orginaization Government Procurement Agreement
  (WTO GPA). These require the U.S. to waive Buy
  American restrictions and to treat products from
  those countries as if they were domestic.
• This waiver applies when the prime contract has
  an estimated value of 7,443,000 or more. For
  subcontractors, the agreement with the prime
  contractor should include a FAR clause
  identifying whether the Buy American restriction
  is waived due to an international agreement.
• Federal contractors can purchase iron, steel, and
  manufactured goods from countries with which we
  have a Trade Agreement (e.g., Canada, Mexico,
  Australia) or countries that are members of the
  WTO GPA (e.g., European Union members, Japan, and
  South Korea).
• There are no agreements with Brazil, China, or
  India

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Davis Bacon

• Workers must be paid not less than the regionally
  adjusted prevailing wages for particular work
  performed.
• Workers must be paid not less than one and
  one-half times their basic rate of pay for all
  hours worked over 40 in a work week.
• Because these are required, the enforcement
  involves local action at the RFP and contract
  stages of construction and also requires that
  evidence of compliance is reported.
• Contract payments can be withheld to ensure
  workers receive wages and overtime pay due, and
  liquidated damages may apply if overtime pay
  requirements are not met. Davis-Bacon contract
  clauses allow contract termination and debarment
  of contractors from future federal contracts for
  up to three years. A contractor who falsifies
  certified payroll records or induces wage
  kickbacks may be subject to civil or criminal
  prosecution, fines and/or imprisonment.

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PROFESSIONAL ORGANIZATIONS

• MARYLAND/DC ASBO WWW.ASBO.ORG
• ASBO INTERNATIONAL WWW.ASBOINTL.ORG
• NATIONAL INSTITUTE OF GOVERNMENTAL PURCHASING
  WWW.NIGP.ORG
•  
• MARYLAND PUBLIC PURCHASING ASSOCIATION
  WWW.MPPAINC.ORG
• INSTITUTE FOR SUPPLY MANAGEMENT WWW.ISM.WS
• NAPM MARYLAND WWW.NAPMMD.ORG

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RESOURCES

• MARYLAND GENERAL ASSEMBLY HOME PAGE -
  http//mlis.state.md.us/stat
• PENDING LEGISLATION
• LEGISLATION DETAILS
•   
• MARYLAND MANUAL ON-LINE - http//www.msa.md.gov/m
  sa/mdmanual/html/mmtoc.html
• MARYLAND CODE (STATUTES)
• MARYLAND REGULATIONS (CoMAR) 
• MD DEPT OF TRANSPORTATION MBE DIRECTORY -
  http//mbe.mdot.state.md.us/directory/
• Education Department General Administrative
  Regulations - http//www.ed.gov/policy/fund/reg/ed
  garReg/edgar.html
•  
• DAVIS BACON (FEDERAL PREVAILING WAGE)
  -http//www.gpo.gov/davisbacon/
• MD DIVISION OF LABOR PREVAILING WAGE -
  http//www.dllr.state.md.us/labor/prev.html