DGS Defends Procurement Reforms, MBE Gains and Decarbonization Plans as DLS Raises Audit Concerns
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The Department of General Services (DGS) told the Public Safety Administration Subcommittee that reforms since 2024 have advanced procurement modernization, increased minority‑business (MBE) contracting and enabled a decarbonization planning effort for state facilities. Secretary Atif Chaudhry said DGS achieved a 25.2% MBE participation rate in FY25 and highlighted recent projects including State House renovations and EV charging station installations.
Department of Legislative Services analyst Yashodara/Yoshida Rai briefed the subcommittee on DGS’s FY27 allowance (~$207.2 million) and raised concerns about data integrity issues with the state procurement platform (Maryland Marketplace Advantage/EMA), increased procurement activity and audit findings that identified shortcomings in past lease evaluations and due diligence. DLS recommended restricting certain funds pending a report on asset‑maximization strategies and suggested committee narrative language for multiple reports.
Chaudhry told lawmakers DGS disagreed with one DLS recommendation to shift $2.4 million in proposed FY26 maintenance appropriations to the facilities renewal fund because bond‑funding rules require a minimum project life the department says some projects do not meet; he also said DGS has hired its first chief compliance officer, will expand compliance capacity, and is holding outreach to raise EPC (energy performance contract) participation.
DGS described a decarbonization plan in draft review, covering roughly 17.5 million gross square feet and more than 800 buildings, and said it’s narrowing 29 candidate facilities to 4–5 prioritized sites for initial solar installations and energy improvements, potentially using EPC models with estimated ~6‑year returns. DLS sought details on selection criteria, timelines and expected energy savings.
Union witnesses representing DGS workers urged improved wages and staffing to retain skilled building‑maintenance personnel. A DGS building‑security officer described low starting pay and persistent overtime. Committee members praised the MBE gains but pressed the agency for guardrails to address prior audit findings and requested increased transparency about procurement and relocation costs.
No votes were taken; DGS committed to written responses and to brief the committee on decarbonization site selection and EPC timelines.
Department of Legislative Services analyst Yashodara/Yoshida Rai briefed the subcommittee on DGS’s FY27 allowance (~$207.2 million) and raised concerns about data integrity issues with the state procurement platform (Maryland Marketplace Advantage/EMA), increased procurement activity and audit findings that identified shortcomings in past lease evaluations and due diligence. DLS recommended restricting certain funds pending a report on asset‑maximization strategies and suggested committee narrative language for multiple reports.
Chaudhry told lawmakers DGS disagreed with one DLS recommendation to shift $2.4 million in proposed FY26 maintenance appropriations to the facilities renewal fund because bond‑funding rules require a minimum project life the department says some projects do not meet; he also said DGS has hired its first chief compliance officer, will expand compliance capacity, and is holding outreach to raise EPC (energy performance contract) participation.
DGS described a decarbonization plan in draft review, covering roughly 17.5 million gross square feet and more than 800 buildings, and said it’s narrowing 29 candidate facilities to 4–5 prioritized sites for initial solar installations and energy improvements, potentially using EPC models with estimated ~6‑year returns. DLS sought details on selection criteria, timelines and expected energy savings.
Union witnesses representing DGS workers urged improved wages and staffing to retain skilled building‑maintenance personnel. A DGS building‑security officer described low starting pay and persistent overtime. Committee members praised the MBE gains but pressed the agency for guardrails to address prior audit findings and requested increased transparency about procurement and relocation costs.
No votes were taken; DGS committed to written responses and to brief the committee on decarbonization site selection and EPC timelines.
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