What is the Minority Business Enterprise (MBE) Compliance?

The MBE Compliance is goal-based to achieve a percentage of MBE participation on Maryland Judiciary issued contracts. An MBE is a business that is at least 51% owned and controlled by one or more minority persons. A minority is generally defined as an individual who is African American, Hispanic American, Asian American, Native American, a woman or a disabled person. Additionally, the Judiciary recognizes non-profit firms that are organized to promote the interests of the physically or mentally disabled.

How does the Maryland Judiciary determine which businesses can participate in the MBE Compliance?

Businesses must apply for certification and provide evidence of ownership and control by the minority person(s) as part of the MBE certification process. The Maryland Judiciary recognizes that MDOT (Maryland Department of Transportation) is the certifying body for the State of Maryland. For information on the certification process, please see MDOT's website.

Additionally, the Judiciary also will recognize MBEs that have been certified through county and city governments.

How does the Maryland Judiciary establish the goals for minority business participation?

Every attempt is made to establish realistic and achievable MBE goals. Individual contract goals are set based upon the dollar value of the project, the availability of MBEs to perform the work to be subcontracted, and the availability of certified MBEs in the location where the work will be completed.

What types of work are available?

Opportunities to participate in the procurement of goods and services are varied and minority participation is encouraged on all contracts. Although contracts with MBEs have been for sub-contract work, the Maryland Judiciary encourages MBEs to become prime contractors.

What is expected of an MBE once a contract is awarded?

All firms are expected to meet performance standards as established by contract specifications. This relates to the quality of work done, the submission of reports and written information in a timely manner, and the firm’s compliance with the Judiciary’s MBE policy.

What is the main advantage of becoming certified as an MBE?

Certification as an MBE provides greater exposure for work opportunities on Maryland Judiciary contracts.

As an MBE, can a firm be assured of getting contracts and subcontracts?

No. MBE certification does not guarantee work to an MBE; however, it does enhance an MBE’s exposure to contract opportunities.

Does the prime contractor have any responsibility in the MBE Compliance?

Yes. The prime contractor must first meet the MBE goals established on the contract by seeking out and utilizing certified MBEs. Once work begins, the prime contractor is responsible for all project activities including those of subcontractors.

Regular monitoring assures that contractual items are performed in accordance with specifications. Monthly reports must be submitted by the prime contractor such as payroll, cost and time estimation, and progress reports. The Office of Contract Compliance and Business Affairs must approve any changes in MBE participation.