Appendix 5- VSBE Participation Goal 2026.docx

Appendix 5. Veteran-Owned Small Business Enterprises (VSBE) Participation Goal

If a bidder or offeror fails to complete accurately or submit the VSBE utilization affidavit or VSBE participation schedule, an agency’s procurement officer, after consultation with the agency’s Veteran-Owned Small Business Enterprise liaison, shall notify the bidder or offeror of the deficiency and require the bidder or offeror to submit an amended VSBE utilization affidavit, VSBE participation schedule, or both within three business days.

If, within three business days, the bidder or offeror fails to submit the amended form or forms correcting the deficiency identified, the procurement officer may determine, in the case of a bid, that the bid is not responsive or, in the case of a proposal, that the proposal is not reasonably susceptible of being selected for award.

5.1. Purpose

a) The Contractor shall structure its procedures for the performance of the work required in the Contract to attempt to achieve the VSBE participation goal stated in this solicitation. VSBE performance must be in accordance with this section and Attachment E, as authorized by COMAR 21.11.14. The Contractor agrees to exercise all good faith efforts to carry out the requirements set forth in this section and Attachment E.

b) A certified VSBE must be registered as a VSBE on the State's eProcurement platform, eMaryland Marketplace Advantage (eMMA). The listing of VSBEs is available through the “Vendor Search” on eMMA.

5.2. VSBE Goal

a) A VSBE participation goal of the total Contract dollar amount has been established for this procurement as identified in the Key Information Summary Sheet.

b) By submitting a response to this solicitation, the Bidder/Offeror agrees that this percentage of the total dollar amount of the Contract will be performed by verified VSBE,

5.3. Solicitation and Contract Formation

a) In accordance with COMAR 21.11.14.07 C (1), this solicitation requires the Bidder/Offeror to:

1) Identify specific work categories within the scope of the procurement appropriate for subcontracting;

2) Conduct outreach through the Directory or utilize VetBiz and other resources and databases to assist in identifying potential veteran vendors. The veteran-owned firm shall be a certified VSBE at the time of submission of the bid or proposal.

3) Solicit VSBEs before Bids/Proposals are due, describing the identified work categories and providing instructions on how to submit a bid/proposal on the subcontracts;

4) Attempt to make personal contact with the VSBEs solicited and to document these attempts;

5) Assist VSBEs to fulfill, or to seek waiver of, bonding requirements; and

6) Attempt to attend pre-Bid/Proposal or other meetings the procurement agency schedules to publicize contracting opportunities to VSBEs.

b) The Bidder/Offeror must include with its Bid/Proposal a completed VSBE Utilization Affidavit and Participation Schedule (Attachment E) whereby the Bidder/Offeror:

1) Acknowledges it: a) intends to meet the VSBE participation goal; or b) requests a full or partial waiver of the VSBE participation goal. If the Bidder/Offeror commits to the full VSBE goal or requests a partial waiver, it shall commit to making a good faith effort to achieve the stated goal; and

2) Responds to the expected degree of VSBE participation as stated in the solicitation, by identifying the specific commitment of VSBEs at the time of Bid/Proposal submission. The Bidder/Offeror shall specify the percentage of contract value associated with each VSBE prime/subcontractor identified on the VSBE Participation Schedule.

[[If there is more than one Functional Area or Service Category within the IFB, include the following language. Edit the highlighted language to be specific to the number and type of Functional Areas or Service Categories in the IFB.]] A Bidder/Offeror must accurately complete and submit a separate Attachment E, VSBE Utilization Affidavit and Prime/Subcontractor Participation Schedule, for EACH Service Category (I and II) for which it is submitting a Bid/Proposal. If a Bidder/Offeror is submitting a Bid/Proposal for each of Service Categories I and II, the Bidder/Offeror must submit two separate Attachment E-1s, one for each of the two Service Categories.

As set forth in COMAR 21.11.14.07.D(2), when a verified VSBE firm participates on a Contract as a Prime Contractor, a procurement agency may count the distinct, clearly defined portion of the work of the contract that the VSBE Prime Contractor performs with its own workforce towards meeting up to one hundred percent (100%) of the VSBE goal.

In order to receive credit for self-performance, a VSBE Prime must list its firm in the VSBE Prime/Subcontractor Participation Schedule (Attachment E) and include information regarding the work it will self-perform. For any remaining portion of the VSBE goal that is not to be performed by the VSBE Prime, the VSBE Prime must also identify verified VSBE subcontractors used to meet the remainder of the goal.

c) Within 10 Business Days from notification that it is the apparent awardee, the awardee must provide the following documentation to the Procurement Officer:

1) VSBE Project Participation Statement (Attachment E);

2) If the apparent awardee believes a full or partial waiver of the overall VSBE goal is necessary, it must submit a fully-documented VSBE Waiver Request Affirmation and Good Faith Efforts Documentation to support waiver request that complies with COMAR 21.11.14.08; and

3) Any other documentation required by the Procurement Officer to ascertain Bidder/Offeror responsibility in connection with the VSBE participation goal.

If the apparent awardee fails to return each completed document within the required time, the Procurement Officer may determine that the apparent awardee is not responsible.

5.4. Veteran Small Business Enterprise (VSBE) Reports

If this solicitation includes a VSBE Goal, the Contractor shall:

a) Submit the following reports by the 10th of the month following the reporting period to the Contract Monitor and the <<typeofAgency>> VSBE representative:

1) VSBE Participation Prime Contractor Paid/Unpaid VSBE Invoice Report (Attachment E) listing any unpaid invoices, over 45 days old, received from any VSBE subcontractor, the amount of each invoice and the reason payment has not been made; and

2) Attachment E, the VSBE Participation Subcontractor Paid/Unpaid VSBE Invoice Report by the 10th of the month following the reporting period to the Contract Monitor and the VSBE Liaison Officer.

b) Include in its agreements with its VSBE subcontractors a requirement that those subcontractors submit monthly by the 10th of the month following the reporting period to the Contract Monitor and <<typeofAgency>> VSBE representative a report that identifies the prime contract and lists all payments received from Contractor in the preceding reporting period month, as well as any outstanding invoices, and the amount of those invoices (Attachment E).

c) Maintain such records as are necessary to confirm compliance with its VSBE participation obligations. These records must indicate the identity of VSBE and non-VSBE subcontractors employed on the contract, the type of work performed by each, and the actual dollar value of work performed. The subcontract agreement documenting the work performed by all VSBE participants must be retained by the Contractor and furnished to the Procurement Officer on request.

d) Consent to provide such documentation as reasonably requested and to provide right-of-entry at reasonable times for purposes of the State’s representatives verifying compliance with the VSBE participation obligations. The Contractor must retain all records concerning VSBE participation and make them available for State inspection for three years after final completion of the Contract.

e) At the option of the State, upon completion of the Contract and before final payment and release of retainage, submit a final report in affidavit form and under penalty of perjury, of all payments made to, or withheld from VSBE subcontractors.

Appendix 5. VSBE Participation Goal Effective Date: September 1, 2026