01.01.2013.05

EXECUTIVE ORDER 01.01.2013.05

Procurement Guidelines — Authorization of Project Labor Agreements, Authorization of Apprenticeship Agreements, and Community Hiring

A. On a project-by-project basis, a State department, agency, authority, board, or instrumentality that is under the control of the Governor, shall consider whether the use of contractors who participate in registered apprenticeship programs and offer a reliable plan for labor staffing on a public project or public-private partnership is in the best interests of the State after considering the totality of the circumstances, including the following factors:

(1) The benefits to the public relative to cost, efficiency, timeliness, quality, health, safety, employment of a skilled labor force, and labor stability;

(2) The number of trades and crafts anticipated to be used on the project;

(3) The need and urgency of the project and the harm to the public if completion of the project is delayed;

(4) The size, complexity, and cost of the project;

(5) The impact on project costs, if any, and the State’s obligation to encourage maximum practicable competition during the procurement process;

(6) The impact on workforce development in construction and the potential for generating skills training and employment opportunities for State residents; and

(7) The impact on the State’s socioeconomic policies, including the policy to advance women-owned and minority-owned businesses.

B. If the State department, agency, authority, board, or instrumentality determines that it is in the best interests of the State to require or encourage the use of contractors who participate in registered apprenticeship training programs and offer a reliable plan for labor staffing on a particular public project or public-private partnership, the decision shall be supported by a written finding that sets forth the justification.

C. For public projects or public-private partnerships in which the use of such contractors who offer these qualifications and performance capabilities will be required or encouraged, applicable procurement documents clearly shall specify whether such qualifications are mandatory or will be considered as a factor for which credit will be given in awarding the contract.The Secretary of the Department of Labor, Licensing and Regulation shall determine, after consultation with the Apprenticeship and Training Council, whether a proffered apprenticeship program is in compliance with applicable program requirements before the contracting agency makes a decision on credit for that requirement or factor.

D. If the successful bidder participates in a registered apprenticeship program (defined as a program that is registered with the U.S. Department of Labor or the Maryland Apprenticeship and Training Council pursuant to the Labor and Employment Article of the Annotated Code of Maryland), the bidder shall execute either (1) a project labor agreement (see Presidential Executive Order 13502 for typical project labor agreement provisions) or (2) an agreement with an entity that operates a registered apprenticeship program.The agreement must demonstrate that the bidder will have access to a reliable supply of properly trained labor personnel who possess the requisite skill and safety training to ensure successful project delivery.The agreement must be approved by the State entity overseeing the project.

E. On public projects or public-private partnerships with projected costs exceeding $5,000,000, a State department, agency, authority, board, or instrumentality that is under the control of the Governor, shall consider whether all or a substantial part of the project is within an area of higher than average unemployment and, if so, whether it is in the best interests of the State to weigh as a factor in the procurement or public notice of solicitation whether a bidder voluntarily submits a community hiring, training, and/or outreach plan for high unemployment areas.

F. If the State department, agency, authority, board, or instrumentality determines, based on the totality of the circumstances, that it is in the best interests of the State to encourage the voluntary submission of a community hiring, training, and/or outreach plan on a particular public works project or public-private partnership, the decision shall be accompanied by the following:

(1) A written finding that sets forth the substantial reasons supporting the decision;

(2) A definition of “high unemployment area” and delineation of that area for purposes of the procurement or public notice of solicitation; and

(3) An explanation of how the proffer of a community hiring, training, and/or outreach plan will be evaluated and weighed in the procurement or public notice of solicitation.

G. All State departments, agencies, authorities, boards, or instrumentalities shall implement this Executive Order in a manner consistent with the important public policy favoring advancement of women-owned and minority-owned businesses as set forth in Title 14, Subtitle 3 of the State Finance & Procurement Article of the Annotated Code of Maryland and Title 21 of the Code of Maryland Regulations.

H. All State departments, agencies, authorities, boards, or instrumentalities shall implement this Executive Order in a manner that is consistent with all applicable statutes and regulations.Nothing in this Executive Order shall be construed to contravene any State or federal law or to jeopardize federal funding.If any provision of this Executive Order or its application to any person or circumstance is held invalid by any court of competent jurisdiction, this invalidity does not affect any other provision or application of this Executive Order that can be given effect without the invalid provision or application.To achieve this purpose, the provisions of this Executive Order are declared to be severable.

Effective date: September 20, 2013