How to sell to Delaware counties

Delaware has 3 counties: New Castle, Kent and Sussex. County bidding follows 9 Del. C. 314. A 2023 law (House Bill 72, 84 Del. Laws ch. 105) tied county bid thresholds to the levels set by the state's Contracting and Purchasing Advisory Council under 29 Del. C. 6913. Because the thresholds follow the state council, they can change without a new county law. Each county also has its own procurement code on top of state law; those codes were not reviewed here.

At a glance

Who buys

New Castle County has an elected county executive and county council; Kent County has a levy court; Sussex County has a county council. Each runs its own purchasing office. No elected member of a county governing body may consent to a covered contract unless it was competitively bid (9 Del. C. 314(a)). In Sussex County, the Director of Finance awards contracts (9 Del. C. 7004, as amended by HB 72; secondary: LegiScan bill text).

Goods and services

State thresholds for materiel and nonprofessional services, effective Feb. 15, 2023 (Division of Facilities Management):

Counties apply these Council thresholds under 9 Del. C. 314(a). New Castle County lists formal bids from $100,000 for materials and nonprofessional services and $150,000 for professional services. No change to the thresholds after Feb. 15, 2023 was found, but confirm current figures before you bid.

Counties have the State's Chapter 69 powers for sole source, emergency and multiple-source contracting (9 Del. C. 314(g)). The 2023 law extended these powers to Sussex County.

Construction and public works

9 Del. C. 314 covers public works and repairs at the same Council thresholds. State public works thresholds are open market under $150,000 and formal bid at $250,000 and over (Division of Facilities Management). The state page lists two quote rules for smaller jobs, so check the solicitation for the method used between those amounts.

• Security. Counties "may" require security for faithful performance (9 Del. C. 314(c)). No mandatory county bid security or bond percentage was confirmed. State agencies generally require 10% bid security and 100% performance bonds (29 Del. C. 6927; 6962), but county use of those rules is not confirmed.
• Retainage. State agencies hold 5% of work completed and may release 60% of it at completion (29 Del. C. 6962). A county rule was not confirmed.

Notice and award

Counties may advertise through the State's electronic procurement advertising system (9 Del. C. 349). Sussex County must follow the State's advertising and bid opening rules in 29 Del. C. 6923(b) and (c) (9 Del. C. 7004; secondary: LegiScan bill text). Under those State rules, formal bids are announced electronically for 2 consecutive weeks, and invitations are available at least 14 days before opening. Whether New Castle and Kent must follow the same timing is not confirmed.

Bids are public sealed proposals, opened in public and awarded to the lowest responsible bidder or bidders (9 Del. C. 314). County use of the State RFP process (29 Del. C. 6924) was not confirmed.

Prevailing wage

Delaware's prevailing wage law covers public works contracts to which the State or a subdivision is a party and the State appropriated any part of the funds. Thresholds are over $500,000 for new construction and over $45,000 for alteration, repair or demolition (29 Del. C. 6960; Delaware Department of Labor). A project paid only with county money appears not to be covered; check the solicitation.

Getting paid

No prompt payment statute for counties was found. Payment terms and any retainage come from the county contract.

Cooperative purchasing and state contracts

Any municipality, political subdivision or local government unit may buy under the State's central contracts (29 Del. C. 6910). "Local government unit" includes the 3 counties (29 Del. C. 6902). See cooperative purchasing.

Preferences and required certifications

• Resident hiring. On public works for the State or any political subdivision, employers must give hiring preference for laborers and mechanics to Delaware residents of at least 90 days (29 Del. C. 6962).
• Business license reporting. Bids to counties are exempt from the State's taxpayer ID and business license reporting requirement (29 Del. C. 6927; 6962).
• Israel boycott, E-Verify, debarment and non-collusion rules for counties were not confirmed; check the solicitation.

Architects and engineers

Counties may contract for engineering, legal and other specialized professional services without competitive bids or a lowest-price award (9 Del. C. 314(d)). The State's qualifications-based selection law for professional services applies to state agencies; no county mandate was found.

Recent changes

• July 21, 2023: HB 72 (84 Del. Laws ch. 105) tied county bid thresholds to the State Council's thresholds, removed Kent County's exemption, and gave Sussex County sole-source, emergency, multiple-source and professional services authority (9 Del. C. 314; 7004).

Practical tips for Delaware

• Look up the State's current thresholds. The counties follow them.
• Check State central contracts. If you hold one, all 3 counties can buy from it (29 Del. C. 6910).
• Register with each county's purchasing office. With only 3 counties, each buys for a large area.
• Check Delaware counties for each county's bid platform, contacts and agendas.