How to sell to Maryland counties

Maryland has 23 counties plus Baltimore City. Counties use one of three forms of government: charter home rule, code home rule or commission. Charter and code counties write their own purchasing codes. The statewide bidding rule in Local Government 12-301 covers commission counties only, and county-specific public local laws often replace it. Treat every county as its own case. State Finance and Procurement (SFP) law adds county rules on bonds, prevailing wage, prompt payment and cooperative purchasing.

At a glance

Who buys

Charter counties have an elected county council and usually a county executive. Code home rule and commission counties are run by a Board of County Commissioners. In commission counties, the commissioners award contracts and must set up a competitive bidding process (Local Government 12-301). Most counties have a central purchasing or procurement office that runs solicitations.

Public local laws can replace the state rule for a given county. For example, Calvert County's own law (section 6-101) supersedes Local Government 12-301 there.

Goods and services

In commission counties, the commissioners must (Local Government 12-301):

• Set up a competitive bidding process for service or supply contracts over $15,000.
• Require a bond in connection with a contract, regardless of amount.
• Buy as they see fit if no bids are received.

Somerset County is exempt for design and consulting contracts (DLS Fiscal and Policy Note for HB 490). St. Mary's County may award service and supply contracts up to $50,000 without the $15,000 bidding, bond and no-bid rules, effective Oct. 1, 2025 (2025 HB 490, Chapter 781).

State law sets no small-purchase or quote rule for counties that we found. Each county sets these in its own policy.

Example: Calvert County (Calvert County Code 6-101 and 6-102)

If Calvert does not award to the lowest price, the reasons go in the minutes.

Construction and public works

We found no statewide county construction bid threshold beyond Local Government 12-301, which speaks to services and supplies. Counties set construction thresholds in their codes. In Calvert County, work where the county acts as general contractor under $250,000 may be awarded after quotes from at least three vendors (Calvert County Code 6-102).

Bonds. Maryland's Little Miller Act treats a county as a "public body" (SFP 17-101). For construction contracts above the small procurement amount, the public body must get both payment and performance security before award. Performance security is set at an amount the body considers adequate. Payment security must be at least 50% of the contract (SFP 17-103(a)). A county may also require security on construction contracts over $100,000 up to the small procurement amount, capped at 50% (SFP 17-103(b)). SFP 13-109 sets small procurement amounts of $100,000 for most procurements and $200,000 for construction by certain state agencies. How the construction figure applies to counties is not confirmed, so read the bond section of each solicitation.

Retainage. Real Property 9-304 caps retention at 5% when 100% bonds are furnished and requires undisputed retention to be paid within 90 days after substantial completion. It excludes contracts under $100,000. Whether it binds county owners is not confirmed; check the contract.

Notice and award

No statewide county notice or award rule was confirmed. Counties set advertising periods and award standards in their codes. Calvert County, for example, advertises in two newspapers for two weeks and awards to the lowest responsible bidder (Calvert County Code 6-101). Watch commissioners' or council agendas for awards.

Prevailing wage

State prevailing wage law covers county and other political subdivision projects of $250,000 or more when the State funds 25% or more of the cost, including school construction (Maryland Department of Labor overview). It does not apply to public work contracts under $250,000 (SFP 17-202(b)(1)). Some counties may have their own local wage laws; check the solicitation.

Getting paid

Chapter 157 of 2022 (SB 250) requires each county and municipality to adopt the policy in SFP 15-103 for paying for goods and services, effective June 1, 2023. Under SFP 15-103, payment is due within 30 days after payment is due and a proper invoice is received (15 days for small business reserve vendors at the State level). The section number where the county rule is codified is unclear in current statute pages, so cite Chapter 157 if you need to raise it. Interest rules in SFP 15-104 are written for State units; county application is not confirmed.

Retainage release follows the contract. See Real Property 9-304 above.

Cooperative purchasing and state contracts

Counties are "governmental entities" under SFP 13-110. A county may join an existing State or local contract if its governing body determines that doing so saves cost or administrative burden or furthers other policy goals (SFP 13-110(e)). Calvert County also exempts purchases off other governments' competitive contracts from formal bidding (Calvert County Code 6-102). See cooperative purchasing.

Preferences and required certifications

Counties that run MBE programs must accept State MBE certification (Local Government 1-404, 2026 codified text). Other preferences are local. Calvert County applies a reciprocal resident-bidder preference that matches the bidder's home jurisdiction, capped at a $25,000 cost increase (Calvert County Code 6-101). Statewide county rules on E-Verify, boycott or divestment certifications and non-collusion affidavits were not confirmed; check the solicitation.

Architects and engineers

We did not confirm a state law requiring qualifications-based selection for county architect and engineer contracts. Calvert County lists professional services among its bidding exceptions (Calvert County Code 6-102). Check each county's code and the solicitation.

Recent changes

• June 1, 2023: Counties must follow the State 30-day payment policy for goods and services (Chapter 157 of 2022).
• Oct. 1, 2025: St. Mary's County service and supply contracts up to $50,000 are exempt from the $15,000 bidding and bond rules (2025 HB 490, Chapter 781).

Practical tips for Maryland

• Find out the county's form of government and read its procurement code or public local laws first.
• Expect a bond request in commission counties, even on small contracts (Local Government 12-301).
• Ask about cooperative contracts. Counties can buy from State or other local contracts without a new bid (SFP 13-110).
• Check Maryland counties for each county's bid platform, contacts and agendas.