PRINCE FREDERICK, Md. — The Calvert County Board of County Commissioners (BOCC) has introduced the Local Business Preference Program, which officially took effect on Oct. 1, 2024. The initiative aims to bolster local businesses by offering them a competitive edge in the county’s procurement process.
The Local Business Preference Program allows Calvert County-based businesses to receive a percentage-based preference when bidding for county contracts. Specifically, businesses within the county will benefit from a 5% deduction on their bid price when competing for contracts under $30,000. Similarly, for contracts exceeding $30,000, the program offers the same 5% deduction, but capped at $25,000. This preferential treatment applies to both formal and informal solicitations for goods and services procured by the county.
The core requirement to qualify for the program is that a business must have its principal office located within Calvert County. Businesses headquartered outside the county do not qualify for the preference and will be considered non-resident entities in the bidding process.
The program, however, is subject to limitations. It does not apply to cases where federal or state laws prevent the use of local preferences, such as contracts awarded through cooperative agreements or emergency purchases. These stipulations ensure that the program complies with overarching procurement rules while still serving its primary purpose: supporting local businesses.
The Local Business Preference Program was born out of a growing recognition that Calvert County’s local businesses were losing ground in the county’s procurement process. From 2022 to 2024, non-resident businesses captured a larger share of the participation and award totals in county contracts. The BOCC saw the need for a solution to level the playing field and provide Calvert-based businesses a fair opportunity to compete.
Local business leaders were consulted throughout the development of the program. The Calvert County Chamber of Commerce, Southern Maryland Minority Chamber of Commerce, and the Calvert County Minority Business Alliance were key contributors, providing insights to ensure the program addressed the real concerns of local businesses. This community-focused approach was essential in gaining broad support and ensuring that the program aligns with the needs of Calvert County’s business ecosystem.
On Sept. 24, 2024, the BOCC gave its approval to the Local Business Preference Program, marking the culmination of years of effort to develop policies that support local entrepreneurs. The commissioners believe that the program will foster economic growth by promoting the success of county-based businesses.
While there may be increased costs associated with giving local businesses a competitive edge, county officials anticipate that these will be balanced by the economic benefits the program generates. As local businesses grow and thrive, they will contribute to the county’s revenue base through personal property and income taxes, helping to offset any additional expenditures.
County officials remain optimistic that the Local Business Preference Program will generate a positive economic impact, keeping more procurement dollars within the county and spurring job creation.
For businesses interested in learning more about the Local Business Preference Program, further details can be found on the county’s website at www.CalvertCountyMd.gov/LocalPreference. Additionally, questions can be directed to the Department of Finance & Budget at 410-535-1600 or via email at procurement@calvertcountymd.gov.