Earlier this month, Authorium’s Co-CEO, Kamran Saddique, testified before the Maryland General Assembly in support of a bipartisan backed bill that seeks to reform procurement practices in the state. He joined elected officials, administration leaders, small business owners, and trade organization representatives to share why procurement reform is more important than ever. Through the stories shared by the speakers – and the recent Executive Order signed by Maryland Governor Wes Moore – it’s clear that now is the time for procurement reform and modernization.
Read on for what we heard in Annapolis, and why supporters are advocating for procurement modernization:
Procurement reform creates jobs and expands economic opportunities
“Small businesses are essential to our state. We are not just economic contributors. We are job creators, mentors, community builders and problem solvers. When the state actively supports small businesses through fair procurement policies, it does more than just help small business owners, like myself, it strengthens the very foundation of our local economy,” shared Teresa Hessler.
“Small businesses make up 99.5% of the businesses in Maryland and employ nearly half of the state’s workforce. However, they receive only a fraction of state procurement contracts due to unnecessarily complex and outdated processes. A 1% increase in small business participation can generate nearly $76 million new dollars of revenue, strengthening our tax base and fueling our local economies,” said Dr. Zina Pierre, a Maryland-based entrepreneur, who has been in business for nearly a quarter century.
Procurement reform ensures prompt payments to vendors
“When it comes to payments, a top problem we see across the board – when it comes to especially small businesses – is the timeliness of payments that are made by the state. This can be a real challenge because a lot of small businesses are on shoestring budgets, and have challenges making payroll and covering their expenses. Oftentimes they’re waiting on payment,” says Atif Chaudhry, Maryland Department of General Services Secretary.
The Department of General Services is responsible for essential services and programs including procuring goods and services; designing, building, leasing, managing and maintaining state owned facilities; and leading energy conservation efforts, among other duties.
In Maryland, the proposed legislation requires that payments under the Small Business Reserve Program be made within 15 days of invoice approval.
Procurement reform streamlines processes and creates new efficiencies
“I’ve certainly seen how our outdated procurement processes across the state can hold back progress,” said State Comptroller, Brooke Lierman.
“Our partner agencies have found that when they remove ineffective and outdated technology, discontinue processes that no longer work, and free expert staff from wasted time spent on legacy processes developed around legacy tooling not built for the specific needs of the public sector, they can unlock greater effectiveness in their operations and are better positioned to realize their mission. Through a no-code, drag-and-drop platform, users of all levels of computer literacy can more rapidly handle complex, document-heavy processes with ease,” shared Kamran Saddique, Authorium Co-CEO in his written testimony.
As of the date of publication, the bill is currently progressing through the Maryland Legislature. Watch this short video of Kamran in Annapolis and see an excerpt of the testimony.
