Prince George’s council members are calling for county-based companies to receive preferential treatment when they seek government contracts.

County Bill 17, known as the Jobs First Act, would require the county government to weigh in favor of county-based and minority-owned businesses when taking bids for new equipment, supplies, construction or services. The bill calls for the county to award 50 percent of all contracts to county-based businesses, which last fiscal year would have equated to $149 million. Since the 2008 fiscal year, about 12 percent of Prince George’s $1.3 billion in procurement spending has gone to county businesses.

Any company that gets county funding for a new shopping center, office park or community must agree to a 51 percent hiring goal for residents as workers under the bill, which also sets hiring and contracting goals for minority-owned and small business firms.

Companies that fail to comply with the new rules would face financial penalties and could lose their contracts if they do not improve, said Councilman Mel Franklin, who sponsored the bill with Councilwoman Andrea Harrison (D-Dist. 5) of Springdale.

“We have to make sure we are providing opportunities,” Franklin said.

The bill is currently in the council’s Public Safety and Fiscal Management Committee. At a hearing last week, no one spoke against the bill.

Franklin said he hopes to pass County Bill 17 this fall after the council returns from summer recess.

Supporters said they see the bill as a way to dispel negative perceptions of the county’s business community. Because so few local firms are currently used by the government, “there’s a perception that local businesses are not qualified to do the work,” said James Dula, former president of the Prince George’s County Chamber of Commerce.

A recent review by the county’s Office of Central Services estimates that of the $298.2 million the county spent on procurement last fiscal year, only $30 million went to companies based in Prince George’s about 10 percent.

“It’s stunning how much of our county tax dollars are leaving right now,” Franklin said.

Current county policy sets a goal of granting 30 percent of county contracts to minority-owned businesses, but those are not required to be based in Prince George’s, Franklin said.

Lawmakers, including state Sen. C. Anthony Muse (D-Dist. 26) of Fort Washington, led protests three years ago after learning that 21 out of 361 work contracts went to local, minority-owned businesses when developers were building National Harbor, a $4 billion luxury resort, condominium and shopping center on the Potomac River.

Two months ago, council members chastised the county’s central services office for not awarding more work to county-based companies. The office currently grants contracts based on cost and prior work history. Calls to the director of central services were not returned by press time.

“People feel like they have to go to [the District] or Virginia rather than the place where they pay taxes," said Councilman Obie Patterson (D-Dist. 8) of Fort Washington during a May 4 meeting with the Office of Central Services. "That's a pretty bad image for a county with a minority population that's nearly 70 percent."

The bill allows local contractors to get “preference percentages” that can boost their chances for a contract, even if their bid is more expensive than an outside company.

Outside contractors could also gain preference points for agreeing to subcontract work with county businesses.

Franklin said any higher contract costs to the government would be made up by keeping the money in the county, where businesses pay taxes and fees.

“Those dollars stay circulating in the county,” he said.

The bill also calls for businesses that receive county dollars to also pay to create a “First Source” job bank of county residents who can be hired, and for developers to sign “community benefit” agreements to support local charities and services.

dvalentine@gazette.net