Construction OberView: Court of Special Appeals Strikes Down Maryland Regulation Prohibiting Bidders From Challenging Whether an Entity is a Certified MBE

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The Court of Special Appeals of Maryland recently decided in Salisbury University v. Joseph M. Zimmer, Inc. that COMAR 21.11.03.14 is invalid. This procurement regulation prohibits a bidder from filing a protest to challenge whether an entity is a certified minority business enterprise (MBE). The Court found this regulation to be in conflict with sections 15-215 and 15-217 of the State Finance & Procurement Article of the Annotated Code of Maryland, which collectively allow a bidder to protest the qualifications of a bidder or the determination of the successful bidder.

As background, Salisbury University issued a solicitation for a replacement chiller. Joseph M. Zimmer, Inc. submitted the apparent low bid. The University’s procurement officer, however, rejected Zimmer’s bid, determining that the subcontractor Zimmer proposed using to meet the MBE participation goal for the contract was not certified as a minority business.

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