October 1, 2025

Comprehensive reform championed by Department of General Services and Governor Wes Moore modernizes the state’s procurement process

ANNAPOLIS, MD (October 1) – The Procurement Reform Act of 2025—landmark legislation championed by Governor Wes Moore to modernize Maryland’s procurement system—officially takes effect on October 1, 2025. 

Representing the most significant overhaul of the state’s procurement processes in decades, the Act enhances efficiency, expands access for small businesses, and creates a more agile, responsive system for both contractors and state agencies. The legislation passed unanimously in the Senate and received bipartisan support in the House of Delegates.

“Building new pathways to work, wages, and wealth for all requires more than paving over the cracks of what’s broken—we need to reform entire systems,” said Gov. Moore. “By transforming how our state awards government contracts, we are paving the way for an economy that is both growing and inclusive. This is what it looks like to leave no one behind.”

Initial changes taking effect this week provide procurement officers with greater flexibility in decision-making and communication with bidders. Additional initiatives will roll out in the coming months, including the launch of the Veteran-Owned Small Business Reserve Program, which will strengthen Maryland’s commitment to supporting certified veteran-owned businesses.

“This comprehensive reform reflects Maryland’s commitment to transparent, inclusive, and forward-thinking governance,” said Maryland Department of General Services Secretary Atif Chaudhry. “This is not the finish line, this is the starting point for a new era for Maryland businesses – one marked by strategic alignment, operational agility, and a sustained commitment to building a fairer, faster, and more future-ready state procurement system.”

“This reform is more than just policy—it’s a strategic lever for equity, innovation, and impact,” said State Chief Procurement Officer Wallace Sermons II. “The Procurement Reform Act is about transforming how we think about the government’s role in creating opportunity. Grounded in a deep understanding of the procurement landscape and the challenges our vendors and agencies face, this reform establishes a new vision for how Maryland can deliver—fairer, more inclusive, and more accountable. It reflects Maryland’s commitment to a modern procurement system that fosters innovation, builds trust, and positions the government as a true partner in progress.”

“Our small, minority, women and veteran-owned businesses are the heart of GOSBA’s work,” said the Governor’s Office of Small, Minority & Women Business Affairs Special Secretary Maria Martinez. “Through collaboration with DGS, agency partners, and our small but mighty team, these reforms are designed to open doors, remove barriers, and expand opportunities for all.” 

Key provisions of the Procurement Reform Act of 2025 include:

• The Small Business Reserve (SBR) Program is expanding by requiring any procurement of $1,000,000 or less to be awarded to a certified small business when there are certified small businesses that can perform the work. The prior mandatory designation was $50,000 to $500,000. This will greatly boost opportunities for small businesses statewide.

• Agencies have more flexibility to adjust MBE and VSBE participation goals before and, if needed, after contract awards—allowing goals to better reflect project needs and market conditions.

• Payment timelines for Small Business Reserve (SBR) contracts will be cut in half, from 30 days to just 15 days after invoice approval, helping small businesses improve their cash flow.

• Secondary competition under the master contracting process will be more efficient and streamlined, as the PRA reduces the number of solicitations required for certain procurements at or below $500,000.

• Oral presentations will be required as part of the evaluation process for certain high-value and complex procurements, facilitating clearer communications between vendors and the State–vendors will have an opportunity to better explain their proposal, and the State will have an opportunity to ask questions to better understand a proposal.

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