Md. Code, State Finance and Procurement, Title 13

in effect

Md. Code, State Finance and Procurement § 13-101

(a) In this subtitle the following words have the meanings indicated. (b) “Designated procurement unit” means: (1) the Department of General Services; (2) the Department of Transportation; or (3) the Department of Information Technology, only with respect to an information technology master contract executed before July 1, 2022, until the earlier of: (i) the expiration date of all information technology master contracts; or (ii) June 30, 2027. (c) “eMaryland Marketplace” or “eMaryland Marketplace Advantage” means the Internet–based procurement system managed by the Department of General Services. (d) “Evaluated bid price” means the price of a bid after adjustment in accordance with objective measurable criteria. (e) “Master contracting” means a streamlined procurement method that provides for the qualification of bidders and offerors for the procurement of services, supplies, or commodities. (f) (1) “Objective measurable criteria” means standards that enable the State to compare the economy, effectiveness, or value of the subject of the bids. (2) “Objective measurable criteria” includes standards of reliability, operational costs, maintainability, useful life, and residual value. (g) “Person” includes, unless the context requires otherwise: (1) the State; (2) a county, a municipal corporation, or any other political subdivision; and (3) any unit of the State government or a political subdivision. (h) “Task order” means a procurement process in which only those vendors with master contracts may compete to provide the services, supplies, or commodities under the procurement.

Md. Code, State Finance and Procurement § 13-102

(a) The following procurement methods are authorized at the procurement officer’s discretion, where applicable: (1) competitive sealed bids under § 13–103 of this subtitle; (2) competitive sealed proposals under § 13–104 or § 13–105 of this subtitle; (3) noncompetitive negotiation under § 13–106 of this subtitle; (4) sole source procurement under § 13–107 of this subtitle; (5) emergency or expedited procurement under § 13–108 of this subtitle; (6) small procurement under § 13–109 of this subtitle; (7) an intergovernmental cooperative purchasing agreement under § 13–110 of this subtitle; (8) auction bids under § 13–111 of this subtitle; (9) architectural, engineering, and land surveying services qualification based selection under § 13–112 of this subtitle; (10) master contracting under § 13–113 of this subtitle; or (11) legislative fast–track procurements under § 13–117 of this subtitle. (b) (1) In awarding a procurement contract for human, social, cultural, or educational service, the preferred method is by competitive sealed proposals under § 13–104 of this subtitle. (2) In awarding a procurement contract for a lease of real property, the preferred method is by competitive sealed proposals under § 13–105 of this subtitle. (3) Procurement under an intergovernmental cooperative purchasing agreement is appropriate in situations where the State is expected to achieve a better price as the result of economies of scale or to otherwise benefit by purchasing in cooperation with another governmental entity.

Md. Code, State Finance and Procurement § 13-102.1

§13–102.1. (a) A unit may not charge a fee to access eMaryland Marketplace. (b) (1) Subject to approval by the Board of Public Works, the Chief Procurement Officer may establish fees for the use of eMaryland Marketplace by an entity that publishes a notice of a procurement, conducts a procurement, or publishes a notice of award. (2) The Chief Procurement Officer may not charge a unit, as defined in § 11–101 of this article, a fee under this subsection. (c) Subject to approval by the Board of Public Works, the Chief Procurement Officer, in consultation with the Department of Budget and Management, may establish fees for: (1) training; (2) strategic sourcing; and (3) administrative costs. (d) (1) There is an Operations Revenue Fund in the Department of General Services. (2) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this article. (3) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. (4) The Fund consists of any fees imposed and collected under subsection (b)(1) or (c) of this section and § 13–226(c) of this title. (5) The Fund shall be used by the Department of General Services to cover the actual documented direct and indirect operating expenses of the Office of State Procurement.

Md. Code, State Finance and Procurement § 13-103

(a) (1) Whenever procurement is based on competitive sealed bids, a procurement officer shall seek bids by issuing an invitation for bids. (2) Subject to subsection (b) of this section, an invitation for bids shall include: (i) the specifications of the procurement contract, including the expected degree of minority business enterprise participation, as provided in § 14–303(b) of this article; (ii) a summary of the factors used to determine the expected degree of minority business enterprise participation for the procurement contract, including subcontracting opportunities identified for the project, any applicable North American Industry Classification System codes linked to the subcontracting opportunities, and the number of certified minority business enterprises in those industries; (iii) whether the procurement contract will be awarded based on the lowest bid price, the lowest evaluated bid price or, if the procurement is subject to § 11–202(3) of this article, the bid most favorable to the State; (iv) if the procurement contract will be based on evaluated bid price, the objective measurable criteria by which the lowest evaluated bid price will be determined; and (v) if the head of the unit or the head of the unit’s designee has so designated, the small business preference. (b) (1) Whenever a procurement officer determines that an initial preparation of specifications for price bids is impracticable, the invitation for bids may: (i) include a request for unpriced technical offers or samples; and (ii) direct bidders to submit price bids: 1. with the unpriced technical offers or samples; or 2. after the unit evaluates the technical offers or samples and finds that they are acceptable under the criteria set forth in the invitation for bids. (2) A unit shall consider the prices submitted by bidders whose technical offers or samples have been found acceptable. (3) Price bids may not be opened until after the unit has completed evaluation of the technical offers or samples. (4) (i) A price bid may not be opened at any time if the bid is submitted by a bidder whose technical offer or sample has been evaluated as unacceptable to the unit. (ii) A procurement officer shall return an unopened price bid submitted by a bidder whose technical offer or sample has been evaluated as unacceptable. (c) (1) A unit shall give public notice of an invitation for bids before bid opening in accordance with this subsection. (2) A unit shall give reasonable notice that shall be at least 10 days before bid opening. (3) The unit shall publish notice in eMaryland Marketplace at least 20 days before bid opening if: (i) the procurement officer reasonably expects bid prices to exceed the small procurement amount specified in § 13–109 of this subtitle or a lower amount set by the Board by regulation in accordance with Title 10, Subtitle 1 of the State Government Article; and (ii) at least part of the procurement contract is to be performed in this State or the District of Columbia. (4) In addition to any notice required under this subsection, a unit may publish notice of an invitation for bids: (i) on a bid board or eMaryland Marketplace; or (ii) in a newspaper, periodical, or trade journal. (d) (1) A procurement officer shall: (i) open bids in public at the time and place designated in the invitation for bids; and (ii) announce, record, and post: 1. the name of each bidder; and 2. the amount of each bid. (2) Except as provided in paragraph (3) of this subsection, a bid is irrevocable, after bid opening, for the period specified in the invitation for bids. (3) A procurement officer may allow a bidder to correct or withdraw a bid if correction or withdrawal is: (i) allowed under regulations adopted under this Division II; and (ii) approved in writing by the Office of the Attorney General. (e) (1) After obtaining any approval required by law, the procurement officer shall award the procurement contract to the responsible bidder who submits the responsive bid that: (i) is the lowest bid price; (ii) if the invitation for bids so provides, is the lowest evaluated bid price; or (iii) for procurement subject to § 11–202(3) of this article, is the bid most favorable to the State. (2) If, after competitive sealed bids have been opened, a procurement officer determines that only 1 responsible bidder has submitted a responsive bid, the unit may negotiate the procurement contract with that 1 bidder under the procedure for sole source procurement. (3) (i) After competitive sealed bids have been opened, a procurement officer may award a procurement contract on the basis of revised bids if: 1. all bids are rejected under § 13–206(b) of this title; 2. all bid prices exceed the funds available for the procurement; or 3. with the approval of the head of the unit or a designee, the procurement officer determines that all bids are unreasonable as to at least 1 requirement and the delay that would result from issuing a new invitation for bids with revised specifications or quantities would be fiscally disadvantageous or otherwise not in the best interests of the State. (ii) If there is more than 1 bidder, discussions about revised specifications or quantities shall be conducted with all responsible bidders who submitted responsive bids. The bidders shall be treated fairly and equally with respect to any discussions. (iii) As promptly as possible, the procurement officer shall: 1. issue an invitation for revised bids, which shall state whether the award will be made without competitive negotiations; and 2. require a prompt response to that invitation. (iv) An invitation for revised bids is not subject to the notice requirements in subsection (c) of this section. (v) After revised bids have been submitted, negotiations with bidders may not be conducted unless the procurement officer determines that there is a compelling reason to negotiate. (vi) After revised bids have been opened and any approval required by law has been obtained, the procurement officer shall award the procurement contract to the responsible bidder who submits a responsive bid that: 1. is the lowest bid price; 2. if the invitation for revised bids so provides, is the lowest evaluated bid price; or 3. for procurement subject to § 11–202(3) of this article, is the bid most favorable to the State. (4) A responsive bid or proposal shall include the criteria specified in subsection (a) of this section. (f) Not more than 30 days after the execution and approval of a procurement contract in excess of the small procurement amount specified in § 13–109 of this subtitle awarded under this section, or a lower amount set by the Board by regulation in accordance with Title 10, Subtitle 1 of the State Government Article, a unit shall publish notice of the award in eMaryland Marketplace.

Md. Code, State Finance and Procurement § 13-104

(a) Competitive sealed proposals is the preferred method for: (1) human, social, cultural, or educational services; and (2) security services with an expected value that is greater than $1,000,000. (b) (1) Whenever procurement is based on competitive sealed proposals, a procurement officer shall seek proposals by issuing a request for proposals. (2) A request for proposals shall include a statement of: (i) the scope of the procurement contract, including the expected degree of minority business enterprise participation, as provided in § 14–303(b) of this article; (ii) a summary of the factors used to determine the expected degree of minority business enterprise participation for the procurement contract, including subcontracting opportunities identified for the project, any applicable North American Industry Classification System codes linked to the subcontracting opportunities, and the number of certified minority business enterprises in those industries; (iii) the factors, including price, that will be used in evaluating proposals; and (iv) the relative importance of each factor. (c) A unit shall publish a request for proposals in the same manner as required for an invitation for bids. (d) (1) After receipt of proposals but before the procurement officer awards the procurement contract, a unit may conduct discussions with an offeror to: (i) obtain the best price for the State; and (ii) ensure full understanding of: 1. the requirements of the State, as set forth in the request for proposals; and 2. the proposal submitted by the offeror. (2) If discussions are conducted, the unit: (i) shall conduct the discussions in accordance with regulations adopted under this Division II; (ii) shall provide an opportunity to participate to each responsible offeror who submits a proposal that, in the judgment of the procurement officer, is reasonably susceptible of being selected for award; (iii) shall treat all of those responsible offerors fairly and equally; (iv) may allow all of those responsible offerors to revise their initial proposals by submitting best and final offers, if discussions indicate that it would be in the best interests of the State to do so; (v) may conduct more than 1 series of discussions and requests for best and final offers; and (vi) may not disclose to an offeror any information derived from a proposal of or discussions with a competing offeror. (3) (i) Except as provided in subparagraph (ii) of this paragraph, an oral presentation is required when: 1. the total value of the contract is expected to exceed $2,000,000 for architectural and engineering services; 2. the total value of the contract is expected to exceed $10,000,000 for construction and construction related services; or 3. for any other procurement, including information technology and professional services, the total value of the contract is expected to exceed $5,000,000. (ii) If the procurement officer makes a written determination that oral presentations are unlikely to aid in the evaluation process, oral presentations are not required. (e) (1) Except as provided in paragraph (2) of this subsection: (i) a proposal is irrevocable for the period specified in the request for proposals; and (ii) a best and final offer is irrevocable for the period specified in the request for best and final offers. (2) A procurement officer may allow an offeror to correct or withdraw a proposal or best and final offer if correction or withdrawal is: (i) allowed under regulations adopted under this Division II; and (ii) approved in writing by the Office of the Attorney General. (f) After obtaining any approval required by law, the procurement officer shall award the procurement contract to the responsible offeror who submits the proposal or best and final offer determined to be the most advantageous to the State considering the evaluation factors set forth in the request for proposals. (g) A unit shall publish notice of a contract in excess of the small procurement amount specified in § 13–109 of this subtitle awarded under this section, or a lower amount set by the Board by regulation in accordance with Title 10, Subtitle 1 of the State Government Article in eMaryland Marketplace.

Md. Code, State Finance and Procurement § 13-105

(a) A request for proposals for a lease of real property shall include: (1) a work statement that shall be used as a basis for the evaluation of proposals; (2) a statement of the factors, including price, that will be used in evaluating proposals; and (3) a statement of the relative importance of each factor. (b) Subject to the requirements of Title 4, Subtitle 3, Part III of this article, a unit shall publish a request for proposals in the same manner as required for an invitation for bids. (c) After proposals have been opened, the procurement officer shall reject any proposal that is unacceptable. (d) (1) If more than three proposals are submitted, the procurement officer may conduct negotiations with the offerors who, based on a preliminary evaluation in accordance with the evaluation factors, have submitted the three best proposals. (2) Negotiations are not required if the request for proposals: (i) notified all offerors that negotiations would not be conducted; and (ii) requested best and final offers. (e) (1) The procurement officer: (i) may establish a maximum fair market rental rate for each premises offered; (ii) during negotiations, may not disclose to an offeror any information derived from the proposal of a competing offeror, except price and information directly related to price; and (iii) after negotiations, may reject a proposal that exceeds the maximum fair market rate. (2) After receiving best and final offers: (i) a procurement officer may conduct further negotiations with the successful offeror to obtain for the State the best price, conditions, and services; and (ii) any modification of a successful offer must be in the best interests of the State. (f) By direct solicitation and without republication of notice, the procurement officer may acquire other offers if: (1) (i) negotiations and best and final offers fail to produce a lease for real property with terms comparable to market rental rates in the boundaries in which the unit must obtain the lease; and (ii) the final offeror did not accept a lease with terms comparable to the market rental rates; or (2) the public notice of requests for proposals fails to produce a response or offer of a lease for real property. (g) If a procurement officer determines that renewal of an existing lease is in the best interests of the State, the procurement officer may negotiate the renewal without soliciting other offers. (h) After obtaining any approval required by law, the procurement officer shall award the procurement contract to the responsible offeror who submits the proposal or best and final offer determined to be the most advantageous to the State considering: (1) the price and evaluation factors set forth in the request for proposals; and (2) the modifications to those factors under the negotiation process.

Md. Code, State Finance and Procurement § 13-106

(a) A procurement officer may award a procurement contract on the basis of noncompetitive negotiation if: (1) the procurement is for human, social, or educational services to be provided directly to individuals with disabilities, individuals who are aged, indigent, disadvantaged, unemployed, mentally or physically ill, or displaced or minors; (2) the procurement is one of a class for which the Chief Procurement Officer or the Chief Procurement Officer’s designee has approved the use of noncompetitive negotiation; and (3) with the approval of the head of the unit, the procurement officer determines that: (i) at least 2 sources are available for the services; but (ii) the absence of effective competition makes it unreasonable to expect bids or proposals from the available sources. (b) (1) Whenever a procurement is based on noncompetitive negotiation, a unit shall publish a request for general expressions of interest. (2) A request for general expressions of interest shall: (i) state the general requirement for services; (ii) request interested service providers to respond in writing with general expressions of interest; and (iii) be published in the same manner as required for an invitation for bids. (c) (1) To satisfy all or part of the requirements of the State as they occur, and without additional advertising, the procurement officer may conduct discussions with any responsible service provider who has submitted an expression of interest. (2) As far as practicable in the course of administering a program, the unit shall treat fairly and equally with respect to discussions all responsible service providers who have submitted expressions of interest. (d) After obtaining any approval required by law, the unit may award a procurement contract if the head of the unit determines, on the basis of continuing discussions or past program experience, that an award will serve the best interests of the State. (e) A unit shall publish in eMaryland Marketplace notice of a procurement contract awarded under this section.

Md. Code, State Finance and Procurement § 13-107

(a) (1) Whenever a procurement officer determines that there is only 1 available source for the subject of a procurement contract, the procurement officer may award the procurement contract without competition to that source. (2) Before awarding a procurement contract to a sole source, the procurement officer shall obtain: (i) the approval of the head of the unit; and (ii) any other approval required by law. (b) (1) Subject to paragraphs (2) and (3) of this subsection, with the prior written approval of the Attorney General, a unit may enter into a sole source contract to obtain the services of a contractor in connection with: (i) threatened or pending litigation; (ii) appraisal of real property for acquisition by the State; or (iii) collective bargaining. (2) This subsection applies only to a procurement in which: (i) a unit obtains the services of a contractor to represent the State; and (ii) the nature of the services to be performed requires confidentiality. (3) This subsection does not apply if the unit reasonably can anticipate a continuing need for a contractor described in paragraph (1)(ii) or (iii) of this subsection. (c) Not more than 30 days after the execution and approval of a procurement contract awarded under this section, a unit shall publish in eMaryland Marketplace notice of the award.

Md. Code, State Finance and Procurement § 13-108

§13–108. IN EFFECT (a) In this section, “emergency” means an occurrence or condition that creates an immediate and serious need for services, materials, or supplies that: (1) cannot be met through normal procurement methods; and (2) are required to avoid or mitigate serious damage to public health, safety, or welfare. (b) (1) Except as provided in § 11–205 (“Collusion”), § 10–204 (“Approval for designated contracts”), § 13–219 (“Required clauses – Nondiscrimination clause”), Title 16 (“Suspension and Debarment of Contractors”), or Title 17 (“Special Provisions – State and Local Subdivisions”) of this article, with the approval of the head of a unit, its procurement officer may make an emergency procurement by any method that the procurement officer considers most appropriate to avoid or mitigate serious damage to public health, safety, or welfare. (2) (i) Except when delaying a procurement by up to 48 hours would likely result in imminent harm, after obtaining the approval of the head of the unit and before making an emergency procurement, the procurement officer shall obtain approval of the use of emergency procurement procedures from the Chief Procurement Officer, or the Chief Procurement Officer’s designee. (ii) Within 48 hours after receiving a request to use emergency procurement procedures, the Chief Procurement Officer or designee shall approve or disapprove the request. (iii) If the Chief Procurement Officer or designee does not approve or disapprove the request to use emergency procurement procedures within 48 hours after receiving the request, the request shall be considered to be approved. (3) The procurement officer shall: (i) obtain as much competition as possible under the circumstances, including by making reasonable efforts to solicit at least three oral quotes; (ii) limit the emergency procurement to the procurement of only those items, both in type and quantity, necessary to avoid or to mitigate serious damage to public health, safety, or welfare; (iii) before awarding an emergency procurement contract to a prospective contractor, evaluate the contractor’s ability to perform the requirements of the contract based on: 1. the length of time the contractor has been in business; 2. the contractor’s level of experience providing the types and amounts of supplies, services, maintenance, commodities, construction, or construction–related services required under the contract; and 3. the contractor’s history of successful procurement contracts with the State and other jurisdictions; (iv) execute a written contract with the successful contractor which includes the terms of the emergency procurement; and (v) not more than 15 days after awarding the procurement contract, submit to the Board a written report that gives the justification for use of the emergency procurement procedure. (4) (i) This paragraph applies only to an emergency procurement contract with a value of $1,000,000 or more. (ii) 1. In advance of or concurrent with the execution of an emergency procurement contract that is subject to this paragraph, a unit may not pay an amount that exceeds $2,000,000, plus 30% of the contract value in excess of $2,000,000. 2. Unless authorized by the Board, the unit may not make any additional payment under the contract until at least 30 days after the execution of the contract. (iii) Not later than 7 days after awarding an emergency procurement contract that is subject to this paragraph, a unit shall submit a copy of the contract to the Board. (iv) The Board may: 1. review an emergency procurement contract submitted under this paragraph at a regularly scheduled meeting of the Board or at an emergency meeting called for that purpose; and 2. direct the unit or the appropriate control agency to take any action, including canceling or rescinding the contract, that the Board deems appropriate. (5) If supplies or commodities procured under an emergency procurement contract are not delivered and used within 1 month after the date the contract is awarded, the unit shall: (i) prepare a report describing the delivery and use status of supplies and commodities procured under the contract at least once per month until all supplies and commodities have been delivered and used; and (ii) submit the reports prepared under this paragraph to the Board, the appropriate control agency, and, in accordance with § 2–1257 of the State Government Article, the Senate Budget and Taxation Committee, the Senate Committee on Education, Energy, and the Environment, the House Appropriations Committee, the House Health and Government Operations Committee, and the Joint Audit and Evaluation Committee. (6) A procurement contract awarded under this subsection shall include provisions addressing the contractor’s ability to perform the requirements of the contract within the emergency time frame. (7) Notwithstanding subsection (e) of this section, on the day of the execution and approval of a procurement contract awarded under this subsection, or as soon as practicable thereafter, a unit shall publish in eMaryland Marketplace notice of the award. (8) (i) This paragraph applies only to the award of a contract or a contract modification made under this subsection that, with prior modifications, exceeds the small procurement amount specified in § 13–109 of this subtitle. (ii) Within 15 days after awarding a contract or a contract modification, a unit shall submit to the Board and the appropriate control agency a report that includes: 1. the basis and justification for the emergency procurement including the date the emergency first became known; 2. a listing of supplies, services, maintenance, commodities, construction, or construction–related services procured; 3. the names of all persons solicited and a justification if the solicitation was limited to one person; 4. the prices and times of performance proposed by the persons responding to the solicitation; 5. the name of and basis for the selection of a particular contractor; 6. the amount and type of the contract or contract modification; 7. a listing of any prior or related emergency contracts, including all contract modifications, executed for the purposes of avoiding or mitigating the particular emergency, including the aggregate costs; and 8. the identification number, if any, of the contract file. (iii) The Board may adopt regulations to carry out this paragraph. (c) (1) Consistent with the requirements of subsection (b)(1) of this section, the State Highway Administration may enter into procurement contracts related to the pretreatment and removal of snow and ice as required or authorized under Title 8 of the Transportation Article. (2) (i) Beginning on June 30, 2016, and no later than June 30 of each succeeding year, the State Highway Administration shall submit to the Board a written report on the operation and effectiveness of the procurement contracts entered into under this subsection during the previous year. (ii) The report shall include: 1. the number of contracts awarded; 2. the total dollar value of the contracts awarded; and 3. the amount of contracting dollars expended with minority business enterprises, certified small businesses, and certified veteran–owned businesses, as defined under Title 14 of this article. (3) The Board, in consultation with the State Highway Administration, may adopt regulations to carry out the requirements of this subsection. (d) (1) Except as provided in § 11–205 (“Collusion”), § 10–204 (“Approval for designated contracts”), § 13–219 (“Required clauses – Nondiscrimination clause”), Title 16 (“Suspension and Debarment of Contractors”), or Title 17 (“Special Provisions – State and Local Subdivisions”) of this article, with the approval of the head of the unit and the Board, a unit’s procurement officer may make a procurement on an expedited basis if the head of the unit and the Board find that: (i) urgent circumstances require prompt action; (ii) an expedited procurement best serves the public interest; and (iii) the need for the expedited procurement outweighs the benefits of making the procurement on the basis of competitive sealed bids or competitive sealed proposals. (2) The procurement officer shall attempt to obtain as much competition as reasonably possible. (e) Except as provided in subsection (b)(7) of this section, not more than 30 days after the execution and approval of a procurement contract awarded under this section, a unit shall publish in eMaryland Marketplace notice of the award. (f) For real property leases procured under this section, the term of the lease shall be for the minimum period of time practicable. (g) The Board may adopt regulations to carry out this section. (h) The Special Secretary for the Office of Small, Minority, and Women Business Affairs, in consultation with the Secretary of Transportation and the Attorney General, shall establish guidelines for each unit to consider when determining the appropriate minority business enterprise participation percentage goal and outreach for an emergency procurement contract.

Md. Code, State Finance and Procurement § 13-109

(a) In this section, “small procurement” means a procurement for which: (1) a unit spends $100,000 or less; (2) a contractor provides services subject to § 11–202(3) of this article for expected annual revenues of $100,000 or less; (3) the Department of General Services or the Department of Transportation is seeking to award a procurement contract for a construction with a value that is $200,000 or less; (4) the Department of Natural Resources is seeking to award a procurement contract for capital projects or maintenance with a value that is $200,000 or less; or (5) for purposes of administering Title 29, Subtitle 1 of the State Personnel and Pensions Article, the State Retirement Agency spends $100,000 or less during a fiscal year for: (i) expenses related to independent medical evaluations by a physician; and (ii) any expenses related to testimony by the physician at administrative hearings on behalf of the Agency. (b) A unit may make small procurements in accordance with the regulations of primary procurement units. (c) A primary procurement unit may not create a small procurement by artificial division of a procurement. (d) Any regulation of a primary procurement unit to govern small procurements: (1) shall provide for a simplified administrative procedure; (2) shall be consistent with the basic intent of this Division II; and (3) may not be disadvantageous economically to the State. (e) At least every 3 years, the Board shall: (1) review the prevailing costs of labor and materials; and (2) if warranted by changes in cost, recommend to the General Assembly appropriate adjustments in the ceiling for a small procurement. (f) If a primary procurement unit determines that a unit does not adhere to the established small procurement regulations, the primary procurement unit may limit or revoke a unit’s ability to conduct small procurements.

Md. Code, State Finance and Procurement § 13-110

(a) (1) In this section the following words have the meanings indicated. (2) “Cooperative entity” means one or more State or local entities that enter into an agreement for the cooperative or joint administration of programs. (3) “Governmental entity” means: (i) the federal government or an agency or other instrumentality of the federal government; (ii) another state or an agency or other instrumentality of another state; (iii) a bistate or multistate agency; (iv) a county, municipal corporation, or other political subdivision of the State or of another state, or an agency or other instrumentality of the political subdivision; (v) a bicounty or multicounty agency; (vi) a primary procurement unit; or (vii) an affiliation, alliance, consortium, or group composed solely of governmental entities that is established for purposes of promoting intergovernmental cooperative purchasing. (4) “Intergovernmental cooperative purchasing agreement” means a contract: (i) 1. entered into by at least one governmental entity and a person selected in a manner that is consistent with the purposes set forth under § 11–201 of this article; 2. that is available for use by the governmental entity entering the contract and at least one additional governmental entity which may, but need not be, an original party to the contract; and 3. that is intended to promote efficiency and savings that can result from intergovernmental cooperative purchasing; or (ii) between a primary procurement unit and a person who, at the time the intergovernmental cooperative purchasing agreement is awarded, has a contract with the federal government or an agency or other instrumentality of the federal government, and who agrees to provide the unit with identical prices, terms, and conditions as stipulated in the federal contract. (5) (i) “Local entity” means a county, municipal corporation, bicounty or multicounty agency, public authority, special taxing district, or other political subdivision or unit of a political subdivision of this State. (ii) “Local entity” includes boards of education and library boards that receive funding from the State. (6) “Nonprofit entity” means�a corporation incorporated in the State, or otherwise qualified to do business in the State that has been determined by the Internal Revenue Service to be exempt from taxation under § 501(c)(3), (4), or (6) of the Internal Revenue Code. (7) “State entity” means a department, board, commission, agency, or a subunit in the Executive branch of State government. (b) (1) Subject to § 12–107 of this article, a primary procurement unit procurement officer shall make a determination, in accordance with paragraph (2) or (3) of this subsection, before the primary procurement unit may: (i) initially sponsor or participate in an intergovernmental cooperative purchasing agreement; (ii) renew an intergovernmental cooperative purchasing agreement; or (iii) modify an intergovernmental cooperative purchasing agreement. (2) A determination under paragraph (1)(i) of this subsection shall be in writing and include: (i) sufficient evidence that the intergovernmental cooperative purchasing agreement: 1. will provide cost benefits to the State; or 2. will promote administrative efficiencies or promote intergovernmental cooperation; and (ii) a statement that the intergovernmental cooperative purchasing agreement: 1. is in the best interest of the State; and 2. is not intended to evade the purposes of this Division II. (3) A determination under paragraph (1)(ii) or (iii) of this subsection shall be in writing and include: (i) sufficient evidence that the intergovernmental cooperative purchasing agreement: 1. will provide cost benefits to the State; and 2. will promote administrative efficiencies or promote intergovernmental cooperation; and (ii) a statement that the intergovernmental cooperative purchasing agreement: 1. is in the best interest of the State; and 2. is not intended to evade the purposes of this Division II. (4) A primary procurement unit shall post each determination required under this subsection on the primary procurement unit’s website. (5) If a primary procurement unit sponsors an intergovernmental cooperative purchasing agreement: (i) the contract shall be awarded in the same manner as the contract would be awarded under this Division II if the unit was the sole participant under the contract, including compliance with all notice requirements; and (ii) all procedures under this Division II, including procedures governing contract claims and protests, shall apply. (6) If a primary procurement unit participates in an intergovernmental cooperative purchasing agreement, any protest or contract claim involving the agreement shall be handled in accordance with the terms of the agreement. (7) If a primary procurement unit sponsors or participates in an intergovernmental cooperative purchasing agreement, the intergovernmental cooperative purchasing agreement shall be: (i) approved by: 1. the head of the primary procurement unit or the head of the primary procurement unit’s designee; or 2. the Chief Procurement Officer or the Chief Procurement Officer’s designee; and (ii) subject to any other approval required by law. (c) (1) Except as provided in paragraph (2) of this subsection, each procurement contract for supplies or services entered into by a State or local entity shall include a provision that facilitates other State and local entities and nonprofit entities to participate in the contract. (2) (i) This subsection does not apply to: 1. a procurement for a capital facility, improvement, or other unique purchase; or 2. a procurement with a projected value of less than $100,000. (ii) This subsection does not apply if the State or local entity determines that including the provision would: 1. undermine the desired timing or effect of the procurement; 2. interfere with the State or local entity’s ability to meet: A. the minority business enterprise goals provided under § 14–302 of this article or any other minority business enterprise program sponsored by the local entity; or B. the Small Business Reserve Program requirements under § 14–502 of this article or any other small business procurement program sponsored by the local entity; or 3. not be in the best interest of the entity. (d) (1) A State or local entity may enter into an agreement for the cooperative or joint administration of programs with one or more other State or local entities. (2) A cooperative entity established under this section may administer the programs and exercise the powers and duties specifically delegated to the cooperative entity by the agreement that established the cooperative entity. (3) An agreement described under this subsection does not relieve a State or local entity or other participant of the agreement from any obligation or responsibility imposed on the entity by law. (e) Notwithstanding any other law, a local entity may participate in an existing State or local contract drafted in accordance with this section, if the governing body of the entity determines that participation would: (1) provide a cost savings in purchase price or administrative burden; or (2) further other policy goals including operational and energy–efficiency goals related to the purchase, operation, or maintenance of the supply or service.

Md. Code, State Finance and Procurement § 13-111

(a) This section applies to the procurement of supplies and services by a primary procurement unit. (b) (1) Whenever the head of a primary procurement unit or designee determines that it is in the best interest of the State for a procurement contract to be based on auction bids, a procurement officer shall seek bids by issuing an invitation for auction bids. (2) Subject to subsection (c) of this section, an invitation for auction bids shall include: (i) the specifications of the procurement contract; (ii) whether the procurement contract will be awarded based on the lowest bid price or the lowest evaluated bid price; (iii) if the procurement contract will be based on evaluated bid price, the objective measurable criteria by which the lowest evaluated bid price will be determined; (iv) the small business preference, if designated under § 13–103 of this subtitle; and (v) the date and time when bidding will commence and the date and time when bidding will end or the event upon which bidding will end. (c) (1) In the discretion of the procurement officer, the invitation for auction bids may: (i) include a request for unpriced technical offers or samples; (ii) direct bidders to submit price bids after the unit evaluates the technical offers or samples and finds they are acceptable under the criteria set forth in the invitation for auction bids; and (iii) inform all bidders who submitted technical offers or samples of the identity of each bidder who submitted an acceptable technical offer or sample. (2) Price bids may not be received until after the unit has completed evaluation of the technical offers or samples. (3) A price bid may not be received at any time if the bid is submitted by a bidder whose technical offer or sample has been evaluated as unacceptable to the unit. (d) A unit shall give public notice of an invitation for auction bids in the same manner as required for an invitation for bids. (e) (1) (i) Multiple price bids are permitted in response to an invitation for auction bids. (ii) When a bidder submits multiple bids, each bid shall be judged independently and shall not revoke previous bids of that bidder. (2) A procurement officer shall: (i) receive bids in public at the time and place designated in the invitation for auction bids; and (ii) record the amount of each bid at the time it is received. (3) (i) The amount of a price bid shall be available for public inspection from the time it is received. (ii) The identity of the bidder submitting a price bid shall not be available for public inspection until bidding has ended. (4) Except as provided in paragraph (5) of this subsection, a bid is irrevocable, after receipt, for the period specified in the invitation for auction bids. (5) A procurement officer may allow a bidder to correct or withdraw a bid if correction or withdrawal is: (i) allowed under regulations adopted under this Division II applicable to an invitation for bids; and (ii) approved in writing by the Office of the Attorney General. (f) (1) After obtaining any approval required by law, the procurement officer shall award the procurement contract to the responsible bidder who submits the responsive bid that: (i) is the lowest bid price; or (ii) if the invitation for auction bids so provides, is the lowest evaluated bid price. (2) If, after bids have been received, a procurement officer determines that only one responsible bidder has submitted a responsive bid, the unit may negotiate the procurement contract with that one bidder under the procedure for sole source procurement. (3) (i) After bids have been received, a procurement officer may award a procurement contract on the basis of revised bids if: 1. all bids are rejected under § 13–206(b) of this title; 2. all bid prices exceed the funds available for the procurement; or 3. with the approval of the head of a primary procurement unit or a designee, the procurement officer determines that all bids are unreasonable as to at least one requirement and the delay that would result from issuing a new invitation for auction bids with revised specifications or quantities would be fiscally disadvantageous or otherwise not in the best interests of the State. (ii) If there is more than one bidder, discussions about revised specifications or quantities shall be conducted with all responsible bidders who submitted responsive bids. The bidders shall be treated fairly and equally with respect to any discussions. (iii) If one of the conditions set forth under subparagraph (i) of this paragraph exists, as promptly as possible, the procurement officer shall: 1. issue an invitation for revised auction bids, which shall state whether the award will be made without competitive negotiations; and 2. require a prompt response to that invitation. (iv) An invitation for revised auction bids is not subject to the notice requirements in subsection (d) of this section. (v) After revised bids have been submitted, negotiations with bidders may not be conducted unless the procurement officer determines that there is a compelling reason to negotiate. (vi) After revised bids have been received and any approval required by law has been obtained, the procurement officer shall award the procurement contract to the responsible bidder who submits a responsive bid that: 1. is the lowest bid price; or 2. if the invitation for revised bids so provides, is the lowest evaluated bid price. (g) Not more than 30 days after the execution and approval of a procurement contract awarded under this section, a unit shall publish notice of the award in eMaryland Marketplace.

Md. Code, State Finance and Procurement § 13-112

(a) In this section, “Department” means the Department of General Services or the Department of Transportation. (b) Qualification based selection shall only be used by the Department if the procurement: (1) is for architectural services, engineering services, or land surveying services; (2) is made on a competitive basis; (3) includes an evaluation of the technical proposals and qualifications of at least two persons; and (4) the services cannot be provided feasibly and economically by existing in–house resources. (c) (1) Whenever a procurement is based on qualification based selection, a procurement officer shall seek proposals by issuing a request for architectural services, engineering services, or land surveying services. (2) A request for architectural services, engineering services, or land surveying services shall include a statement: (i) describing generally the architectural services, engineering services, or land surveying services that are the subject of the procurement; and (ii) indicating how an interested person may receive information about the procurement, including a comprehensive description of the nature and scope of the architectural services, engineering services, or land surveying services. (d) The Department shall publish reasonable and timely notice of a request for architectural services, engineering services, or land surveying services in eMaryland Marketplace. (e) The Department shall: (1) evaluate the technical proposals and qualifications of the persons submitting the proposals; and (2) determine an order of priority based on those evaluations. (f) (1) From the results of the selection process under this section, the Department shall: (i) begin negotiations with the most qualified persons; and (ii) try to negotiate a procurement contract with that person at a rate of compensation that is fair, competitive, and reasonable. (2) In determining the rate of compensation under this subsection, the Department shall: (i) consider the scope and complexity of the architectural services, engineering services, or land surveying services required; and (ii) conduct a detailed analysis of the cost of those services. (3) (i) In determining the rate of compensation under this subsection, the Department of Transportation also shall comply with limits on costs reimbursement, including overhead limits established by the Department. (ii) In setting the limits under subparagraph (i) of this paragraph, the Department of Transportation shall consider the goal of the selection process as well as the reasonable cost of architectural services, engineering services, or land surveying services. (g) If the Department is unable to negotiate a satisfactory procurement contract at a rate of compensation that is fair, competitive, and reasonable, it shall: (1) terminate negotiations with the most qualified person; and (2) negotiate in the same manner with the next most qualified person and, if necessary, continue negotiations in accordance with the procedures under this section until the Department reaches an agreement. (h) After obtaining any approval required by law, the procurement officer shall award a procurement contract to the most qualified person with whom an agreement was reached on compensation that is fair, competitive, and reasonable. (i) Not more than 30 days after the execution and approval of a procurement contract awarded under this section, the Department shall publish in eMaryland Marketplace notice of the award. (j) All documents relating to the award of a procurement contract are to be made available to the public, including: (1) technical resumes; (2) technical proposals; (3) the procurement contract; (4) scope of services; (5) programs/projects; (6) staff reports; (7) internal worksheets; and (8) all other information relating to the negotiation and award of a procurement contract under this section. (k) (1) The Department shall waive the requirements in subsections (b), (e), (f), (g), and (j) of this section if: (i) the Department determines that: 1. the architectural services, engineering services, or land surveying services cannot be defined so completely as to carry out those requirements; or 2. the specifications require architectural services, engineering services, or land surveying services that are available only from a bona fide single source or a proprietary product or process; (ii) the Governor declares an emergency; (iii) after a natural disaster, public health and safety are endangered; or (iv) on the recommendation of the Secretary of the Department and a finding by the Governor that extraordinary circumstances exist, the Board of Public Works determines that: 1. for a particular project, urgent circumstances require the selection of a contractor on an expedited basis; 2. expedited selection best serves the public interest; and 3. the need for an expedited selection outweighs the benefits of carrying out those requirements. (2) A waiver and the reasons for it shall be documented and: (i) immediately reported to eMaryland Marketplace for publication; and (ii) reported to the Legislative Policy Committee within 30 days after the waiver occurs. (l) (1) The Department may not award a procurement contract to a person under this subtitle unless: (i) the person submits: 1. an affidavit of noncollusion; and 2. a price quotation; and (ii) for a procurement contract costing more than $200,000, the person has executed a truth–in–negotiation certificate. (2) The truth–in–negotiation certificate shall state that: (i) wage rates and other factual unit costs supporting wages are accurate, complete, and current as of the time of contracting; and (ii) the original price of the procurement contract and any additions to the procurement contract will be adjusted to exclude any significant price increase if the Department determines that the price increase is due to wage rates or other factual unit costs that were inaccurate, incomplete, or not current as of the time of contracting. (3) An adjustment to the procurement contract shall be made within 1 year after the procurement contract is completed. (m) The Department may not award a procurement contract for architectural services, engineering services, or land surveying services that: (1) is a cost–plus–a–percentage–of–cost contract; or (2) includes fee schedules that are based on a percentage of construction costs. (n) (1) The State may postaudit the rates of contractors performing architectural services, engineering services, or land surveying services. (2) All rates used in a cost–plus–fixed–fee procurement contract shall be verified by postaudit if: (i) the compensation is more than $50,000 and the procurement contract involves a unit other than a transportation unit; and (ii) the compensation is more than $25,000 and the procurement contract involves a transportation unit. (3) On request by a procuring authority of any political subdivision of the State that is considering an architect, an engineer, or a land surveyor for a specific project, any State audit of the architect, engineer, or land surveyor shall be made available. (o) (1) The Department may terminate without liability a procurement contract for architectural services, engineering services, or land surveying services if: (i) there has been a conviction of a crime arising out of or in connection with the procurement contract or any payment to be made under the procurement contract; or (ii) there has been a breach or violation of any provision of this subtitle. (2) Subject to subsection (a) of this section, the Department may deduct from the procurement contract price or otherwise recover the full amount of any fee, commission, gift, percentage, or other consideration paid in violation of this subtitle. (3) If a procurement contract is terminated under this section, the contractor: (i) is entitled only to the earned value of the work completed as of the date of termination, plus termination costs; (ii) is liable for any costs incurred for completion of the work over the maximum amount payable to the contractor under the procurement contract; and (iii) shall refund all profits or fixed fees realized under the procurement contract. (4) (i) The provisions of this section are in addition to any other right or remedy allowed by law. (ii) By carrying out this section, the Department does not waive any other right or remedy provided by law. (p) A person who violates any provision of this section is guilty of a felony and on conviction is subject to a fine not exceeding $20,000 or imprisonment not exceeding 10 years or both. (q) (1) The Department of General Services and the Department of Transportation shall adopt regulations that provide substantially similar procedures to carry out this section. (2) The procedures of the Department shall ensure that a recommendation to the Board of Public Works for the award of a procurement contract for architectural services, engineering services, or land surveying services costing over $200,000 is made on a competitive basis and includes an evaluation of the technical proposals and qualifications of at least two persons.

Md. Code, State Finance and Procurement § 13-113

(a) The designated procurement units may adopt master contracting, a streamlined procurement method, to provide for the qualification of an offeror in one or more categories of services, supplies, or commodities. (b) If a designated procurement unit adopts master contracting, the master contracting method shall include: (1) the categories of services, supplies, or commodities in which an offeror may submit a proposal for qualification; (2) a procedure for the consideration and approval of proposals for qualification of multiple offerors in each category of services, supplies, or commodities; (3) the execution of a standard contract for a specified period of time between the State and an offeror approved as a master contractor; and (4) a performance evaluation procedure to be used by a unit of the Executive Branch to evaluate the performance of a qualified offeror that has completed work on a task order. (c) (1) A unit of the Executive Branch that requires services, supplies, or commodities covered under a master contract may issue a solicitation for a task order to a master contractor consistent with the regulations adopted under § 13–114 of this subtitle. (2) Except as provided in subsection (f) of this section, the solicitation for a task order shall include a statement of the: (i) factors that will be used in evaluating a master contractor’s response; and (ii) relative importance of each factor. (d) (1) This subsection does not apply to a task order designated as a small business reserve in accordance with § 14–502 of this article. (2) Except as provided in subsection (f) of this section, if the unit of the Executive Branch expects that the total cost of the services, supplies, or commodities will exceed $500,000, the unit shall issue a solicitation for a task order to all master contractors in the appropriate category established by the designated procurement unit. (3) If the unit of the Executive Branch expects that the total cost of the services, supplies, or commodities will exceed $100,000 but will not exceed $500,000, the unit shall issue a solicitation for a task order to a minimum of six qualified master contractors on a rotating basis for master contracts designated by the Chief Procurement Officer or all master contractors, whichever is less, in the appropriate category established by the designated procurement unit. (4) If the unit of the Executive Branch expects that the total cost of the services, supplies, or commodities will be $100,000 or less, the unit shall issue a solicitation for a task order to a minimum of three qualified master contractors on a rotating basis for master contracts designated by the Chief Procurement Officer or all master contractors, whichever is fewer, in the appropriate category established by the designated procurement unit. (e) (1) Except as provided in subsection (f) of this section, after a unit of the Executive Branch receives responses from master contractors to a solicitation for a task order, the unit shall evaluate the responses and may select a master contractor based on the response that is determined to be the most advantageous to the State considering the evaluation factors set forth in the task order. (2) Except as provided in paragraph (3) of this subsection, oral presentations are required prior to selecting a master contractor when: (i) the total value of the task order is expected to exceed $2,000,000 for architectural and engineering services; (ii) the total value of the task order is expected to exceed $10,000,000 for construction and construction related services; or (iii) for all other procurement, including information technology and professional services, when the total value of the task order is expected to exceed $5,000,000. (3) If the procurement officer makes a written determination that oral presentations are unlikely to aid in the evaluation process, oral presentations will not be required. (f) The requirements of subsections (c)(2), (d), and (e)(1) of this section do not apply to a master contract for construction if the master contract: (1) is awarded through a competitive process in accordance with this subtitle; and (2) states: (i) how task orders will be awarded; and (ii) the maximum number of qualified contractors that will be awarded a master contract for construction.

Md. Code, State Finance and Procurement § 13-114

(a) The Board shall adopt regulations in accordance with Title 10, Subtitle 1 of the State Government Article to establish a uniform process for the solicitation of master contracts and task orders. (b) Each designated procurement unit shall ensure compliance with the regulations set forth in subsection (a) of this section.

Md. Code, State Finance and Procurement § 13-115

(a) The Department of Information Technology shall require basic security requirements to be included in a contract: (1) in which a third–party contractor will have access to and use State telecommunication equipment, systems, or services; or (2) for systems or devices that will connect to State telecommunication equipment, systems, or services. (b) The security requirements developed under subsection (a) of this section shall be consistent with a widely recognized security standard, including National Institute of Standards and Technology SP 800–171, ISO27001, or Cybersecurity Maturity Model Certification.

Md. Code, State Finance and Procurement § 13-116

(a) In this section, “proof of concept” means a test, evaluation, demonstration, or pilot project of a good, service, or technology in a real–world environment to evaluate whether the good, service, or technology can be successfully deployed and is beneficial to the State. (b) (1) A competitive proof of concept procurement is a formal competitive procurement method that may be used to solicit proposals for the conduct of a proof of concept prior to full implementation when the head of a unit determines the process to be appropriate and in the best interests of the unit, including: (i) testing software–as–a–service or off–the–shelf software; (ii) testing new, innovative products or services; or (iii) testing a product or service conceptualized or conceived of by a unit of State government. (2) (i) After obtaining the approval of the head of the unit and before conducting a competitive proof of concept procurement, the unit shall obtain approval from the Secretary of Information Technology, or the Secretary’s designee. (ii) The Secretary of Information Technology may grant approval for a competitive proof of concept procurement if the unit: 1. has sufficient internal resources to manage the proof of concept, including human capital, subject matter expertise, and technological infrastructure, or has the means to obtain these resources; and 2. enters into a memorandum of understanding with the Department of Information Technology that requires regular status updates, vendor capacity, and any other information necessary for the Department of Information Technology to evaluate whether the proof of concept can be successfully deployed and is beneficial to the State. (c) (1) A competitive proof of concept procurement may be conducted through the issuance of a solicitation by any method of procurement authorized under this Division II. (2) A competitive proof of concept procurement solicitation shall include a statement of: (i) the scope of work or project description, including the intended use, quantity, estimated time frame for the proof of concept, and anticipated number of proof of concept awards that will be made; and (ii) the factors, including price, that will be used in evaluating proposals and the relative importance of each. (3) A solicitation may be distributed to vendors known to offer goods or services within the scope of the proof of concept and shall, except for procurements under $15,000 not otherwise required by law to be posted, be posted on eMaryland Marketplace Advantage, in accordance with the policies and procedures under subsection (g) of this section. (d) After receipt of proposals but before award of a procurement contract, a unit may: (1) conduct discussions with an offeror to ensure full understanding of: (i) the requirements of the unit, as set forth in the request for proposals; and (ii) the proposal submitted by the offeror; and (2) request product samples for testing by the unit or a demonstration of a product or service and use these samples or demonstrations in its evaluation process. (e) A request for product samples for testing or demonstration made under subsection (d)(2) of this section shall be issued to all offerors deemed reasonable at the time of the request. (f) A unit may award one or more of the proposals a contract for the proof of concept. (g) A vendor awarded a proof of concept procurement shall be eligible to bid on a procurement to implement a proposal related to the proof of concept procurement. (h) The Department of General Services, in consultation with the Department of Information Technology, shall adopt policies and procedures for the development and implementation of competitive proof of concept procurements.

Md. Code, State Finance and Procurement § 13-117

(a) It is the intent of the General Assembly to: (1) recognize the need for State agencies to be responsive to the requests and legislative directives of the General Assembly; (2) reduce the time it takes for State agencies to procure consultants to assist with legislative mandates that have deadlines specified in law; and (3) be timely in addressing climate change, environmental, energy, and greenhouse gas emissions related issues. (b) This section applies only to the procurement of consultants that: (1) are legislatively mandated with specific time frames established in law; and (2) will address issues related only to climate change, the environment, energy, and greenhouse gas emissions. (c) The following units are authorized to issue competitive sealed bids higher than their designated small procurement delegation authorities: (1) the Public Service Commission; (2) the Office of People’s Counsel; (3) the Maryland Energy Administration; (4) the Department of the Environment; and (5) the Department of Natural Resources. (d) Before awarding a procurement contract under this section, the procurement officer shall obtain the approval of: (1) the head of the unit; and (2) the Chief Procurement Officer, or their designee. (e) (1) The Chief Procurement Officer, or their designee, shall approve a procurement contract submitted under this section if it complies with the requirements of this section. (2) If the Chief Procurement Officer, or their designee, does not approve a procurement contract submitted under this section within 5 business days after receiving the contract, the contract shall be considered approved.

Md. Code, State Finance and Procurement § 13-201

(a) In this subtitle the following words have the meanings indicated. (b) “Change order” means a written order that: (1) is signed by the procurement officer; and (2) directs the contractor to make changes that the procurement contract authorizes the procurement officer to order without the consent of the contractor. (c) “Contract modification” means a written alteration that: (1) affects specifications, delivery point, date of delivery, period of performance, price, quantity, or other provisions of a procurement contract; and (2) is accomplished by mutual action of the parties to the procurement contract. (d) “Cost-reimbursement contract” means a procurement contract under which the State reimburses a contractor for fees and other costs that are: (1) recognized as allowable and allocable under the regulations of the Board on price and cost principles; and (2) within a stated ceiling.

Md. Code, State Finance and Procurement § 13-202

(a) After a solicitation is issued and until a recommendation is made by a procurement officer, a procurement officer may disclose to a person outside the Executive Department only: (1) whether a decision has been made regarding a solicitation; and (2) information that is available to the public under Title 4, Subtitles 1 through 5 of the General Provisions Article. (b) After a solicitation is issued, a procurement officer shall record and include in the procurement file the following information from an inquiry from a source outside the Executive Department: (1) the date and time of the inquiry; (2) the name and affiliation of the person making the inquiry; and (3) the substance and nature of the inquiry. (c) A procurement officer shall maintain a file on each procurement that includes: (1) a record of all inquiries required to be recorded under subsection (b) of this section; (2) all written solicitations by an agency or unit; (3) all offers received; (4) all internal and external correspondence regarding the procurement; (5) written documentation from the procurement officer describing efforts to confirm the information in the affidavits submitted by the successful bidder or offeror; and (6) the final contract.

Md. Code, State Finance and Procurement § 13-205

(a) A unit: (1) shall draft specifications to encourage maximum practicable competition without modifying the requirements of the State; and (2) may not draft specifications to favor a single prospective bidder or offeror. (b) A unit shall require a prospective bidder or offeror of supplies or construction to state in the bid or offer: (1) whether the procurement will or may include recycled materials; and (2) the types, amounts, and application of recycled materials that the bidder or offeror intends to include in the procurement.

Md. Code, State Finance and Procurement § 13-206

(a) (1) A procurement officer shall reject a bid or proposal if the procurement officer determines that: (i) the bid is nonresponsive or the proposal is unacceptable; or (ii) the bidder or offeror is not responsible. (2) The procurement officer shall include a determination under this subsection in the procurement file. (b) If, with the approval of the Board, a unit determines that it is fiscally advantageous or otherwise in the best interests of the State, the unit may: (1) cancel an invitation for bids, a request for proposals, or other solicitation; or (2) reject all bids or proposals. (c) A procurement officer may determine that a person is not a responsible bidder or offeror for: (1) unreasonable failure to supply information promptly in connection with a determination of responsibility under subsection (a) of this section; or (2) any other reason indicating that the person does not have: (i) the capability in all respects to perform fully the requirements for a procurement contract; or (ii) the integrity and reliability that will ensure good faith performance.

Md. Code, State Finance and Procurement § 13-207

(a) Except as otherwise provided in this section, a procurement officer may not require a bidder or offeror to provide bid security on a procurement contract if the procurement officer expects the price to be less than or equal to the small procurement amount specified in § 13–109 of this title. (b) (1) A procurement officer shall require a bidder or offeror to provide bid security on a procurement contract for construction if: (i) the price is expected to exceed the small procurement amount specified in § 13–109 of this title; or (ii) required by federal law or a condition of federal assistance requires the security. (2) The amount of bid security required for a procurement contract for construction shall be: (i) at least 5% of the bid or price proposal; or (ii) if the bid or price proposal states a rate but not a total price, an amount determined by the procurement officer. (c) (1) A procurement officer may require a bidder or offeror to provide bid security on a procurement contract for services, supplies, or construction related services if the price of the procurement contract is expected to exceed the small procurement amount specified in § 13–109 of this title. (2) A procurement officer shall require a bidder or offeror to provide bid security on a procurement contract for services, supplies, or construction related services if federal law or a condition of federal assistance requires the security. (3) The amount of bid security required for a procurement contract for services, supplies, or construction related services shall be an amount determined by the procurement officer. If a bid or proposal states a rate but not a total price, the procurement officer shall determine the dollar amount of the bid security. (d) Bid security under this section shall be: (1) a bond provided by a surety company authorized to do business in the State; (2) cash; or (3) another form of security allowed by regulation.

Md. Code, State Finance and Procurement § 13-208

(a) Except as provided under subsection (b) of this section, if a procurement officer requires bid security, the procurement officer shall reject a bid or proposal that is not accompanied by proper security. (b) A procurement officer may accept a bid or proposal that is accompanied by bid security in less than the amount required if: (1) the procurement officer determines that: (i) the deficiency in the amount is insubstantial; and (ii) acceptance of the bid or proposal would be in the best interests of the State; and (2) the procurement officer further determines that: (i) the bid or proposal was the only one submitted and there is no time for rebidding; (ii) the bid security became inadequate as a result of the correction of a mistake in the bid or proposal or as a result of a modification in the bid or proposal in accordance with applicable regulations, and the bidder or offeror increased the amount of bid security to required limits within 48 hours after the correction or modification; or (iii) after consideration of the risks involved and the difference between the lowest bid and the next lowest bid, it would be fiscally advantageous to the State to accept the lowest bid or proposal.

Md. Code, State Finance and Procurement § 13-209

Whenever a bidder or offeror withdraws a bid or proposal, action may be taken against the bid security unless: (1) there is a mistake in the bid or proposal; and (2) the procurement officer allows the bidder or offeror to withdraw before the procurement contract is awarded.

Md. Code, State Finance and Procurement § 13-210

(a) (1) If a procurement officer decides to conduct a pre–bid conference to explain the requirements of a procurement that is expected to exceed $100,000, as soon as practicable after the conference concludes, the procurement officer shall have written minutes of the conference prepared. (2) The minutes of a pre–bid conference are public records and shall be open to public inspection during ordinary business hours. (b) (1) Subject to Title 4 of the General Provisions Article: (i) a summary of the final evaluation of a proposal shall be open to public inspection; (ii) after an award, all proposals shall be open to public inspection; and (iii) at and after bid opening, the contents of a bid and any document submitted with the bid shall be open to public inspection. (2) Except as otherwise provided in this section, Title 4 of the General Provisions Article shall govern any request for the disclosure of information related to a procurement. (c) A procurement officer may deny public access to the advisory or deliberative records of an evaluator of a proposal if the records would not be available by law to a private party in litigation with the unit. (d) (1) Before bid opening: (i) bids shall remain sealed; and (ii) the State may not disclose the name of a bidder. (2) Before the closing date for proposals, a procurement officer may not disclose the name of a person who has submitted a proposal. (3) Before awarding a procurement contract based on competitive sealed proposals, the State may not disclose the contents of a proposal to any person other than a person responsible for evaluating or reviewing the proposal. (e) Subsections (b)(1), (c), and (d) of this section do not affect the authority of the Board of Contract Appeals or a court of competent jurisdiction to: (1) decide that information is discoverable in an administrative or judicial proceeding; and (2) compel disclosure.

Md. Code, State Finance and Procurement § 13-211

(a) In this section, “procurement official” means a procurement officer or an individual who participates in the drafting of specifications for procurement. (b) During the conduct of a procurement, a competing contractor, or any officer, employee, representative, agent, or consultant of any competing contractor, may not knowingly: (1) make any offer or promise of future employment or business opportunity to, or engage in any discussion of future employment or business opportunity with, any procurement official of the agency conducting the procurement; (2) offer, give, or promise to offer or give any money, gratuity, or other thing of value to any procurement official of the agency conducting the procurement; or (3) solicit or obtain from any officer or employee of an agency conducting the procurement, before the award of a contract, any proprietary or source selection information regarding the procurement.

Md. Code, State Finance and Procurement § 13-212

(a) Each invitation for bids or request for proposals for a contract that will involve the selection of a consultant who is to assist the unit in the formation, award, or execution of any State contract shall require that a bidder or offeror provide to the unit an affidavit that discloses any actual or potential conflict of interest of which the bidder or offeror knows, or can reasonably be expected to know, in accordance with regulations adopted under this section. (b) The Board shall adopt regulations concerning the disclosure and evaluation of conflicts of interest under this section.

Md. Code, State Finance and Procurement § 13-212.1

§13–212.1. (a) Except as provided in subsection (d) of this section, an individual who assists an executive unit in the drafting of specifications, an invitation for bids, a request for proposals for a procurement, or the selection or award made in response to an invitation for bids or a request for proposals, or a person that employs the individual during the period of assistance, may not: (1) submit a bid or proposal for that procurement; or (2) assist or represent another person, directly or indirectly, who is submitting a bid or proposal for that procurement. (b) For purposes of subsection (a) of this section, assisting in the drafting of specifications, an invitation for bids, or a request for proposals for a procurement does not include: (1) providing descriptive literature, such as catalogue sheets, brochures, technical data sheets, or standard specification “samples”, whether requested by an executive unit or provided unsolicited; (2) submitting written or oral comments on a specification prepared by an executive unit or on a solicitation for a bid or proposal when comments are solicited from two or more persons as part of a request for information or a prebid or preproposal process; (3) providing specifications for a sole source procurement made in accordance with § 13–107 of this title; (4) providing architectural and engineering services for: (i) programming, master planning, or other project planning services; or (ii) the design of a construction project if: 1. the design services do not involve lead or prime design responsibilities or construction phase responsibilities on behalf of the State; and 2. A. the anticipated value of the procurement contract at the time of advertisement is at least $2,500,000 and not more than $100,000,000; or B. regardless of the amount of the procurement contract, the payment to the individual or person for the design services does not exceed $500,000; or (5) for a procurement of health, human, social, or educational services, comments solicited from two or more persons as part of a request for information, including written or oral comments on a draft specification, an invitation for bids, or a request for proposals. (c) A unit that receives comments as described in subsection (b)(2) and (5) of this section shall retain: (1) any written comments; and (2) a record of any oral comments. (d) (1) The prohibitions established under subsection (a) of this section apply from the date of issuance of the first invitation for bids or request for proposals for which the specifications were initially drafted until the later of: (i) 2 years from the date of issuance; or (ii) the selection or award of a procurement contract in response to the issuance of the invitation for bids or request for proposals or a reissuance of the invitation for bids or request for proposals for which the specifications were initially drafted. (2) The prohibitions established under subsection (a) of this section do not apply to a subsequent invitation for bids or request for proposals for which the specifications are reused after the initial prohibition is no longer applicable in accordance with paragraph (1) of this subsection.

Md. Code, State Finance and Procurement § 13-213

(a) In accordance with Title 10, Subtitle 1 of the State Government Article, the Board shall adopt regulations on price and cost principles based on generally accepted accounting principles. (b) The principles adopted by the Board shall be used: (1) as guidelines for negotiations on: (i) estimated costs or fixed prices; (ii) price adjustments for contract modifications and change orders; and (iii) settlements of terminated procurement contracts; (2) to establish the allowability of costs under procurement contract provisions for the reimbursement of costs; and (3) in any other situation that requires the establishment of the estimated or incurred costs of performing a procurement contract.

Md. Code, State Finance and Procurement § 13-214

(a) (1) Subject to § 13-215 of this subtitle and subsection (b) of this section, a unit may enter into a procurement contract based on any method of pricing that will promote the best interests of the State. (2) If practicable, a unit shall give preference to a fixed-price form of procurement contract. (b) (1) A unit may not enter into a cost-plus-a-percentage-of-cost procurement contract. (2) A contractor who is subject to a cost-reimbursement contract may not enter into a cost-plus-a-percentage-of-cost subcontract.

Md. Code, State Finance and Procurement § 13-215

(a) A unit may not enter into a cost-reimbursement contract unless the procurement officer determines that: (1) a cost-reimbursement contract is likely to be less costly to the State than any other type of contract; or (2) except for leases of real property, the kind or quality of procurement that the unit requires could not be obtained practicably under any other type of contract. (b) A unit may not enter into a procurement contract that is wholly or partly a cost-reimbursement contract unless the procurement officer determines that the accounting system of the contractor: (1) will allow timely development of all necessary cost data in the form required by the specific type of procurement contract under consideration; and (2) is adequate to allocate costs in accordance with generally accepted accounting principles. (c) A cost-reimbursement contract shall provide that costs, including costs for subcontractors, will be reimbursed only if the costs are allowable and allocable under: (1) the procurement contract; or (2) the regulations of the Board on cost principles. (d) A contractor under a cost-reimbursement contract shall give notice to and, as required under the contract, obtain approval from a procurement officer before the contractor enters into: (1) a cost-reimbursement subcontract; or (2) any subcontract involving more than: (i) $25,000; or (ii) 5% of the estimated cost of the procurement contract.

Md. Code, State Finance and Procurement § 13-216

(a) Except as provided in subsection (b) of this section, a procurement officer may not require a contractor to provide a performance bond, payment bond, or other security on a procurement contract for construction, construction related services, services, or supplies if the price of the procurement contract is less than or equal to the small procurement amount specified in § 13–109 of this title. (b) A procurement officer shall require a contractor to provide a performance bond, payment bond, or other security if federal law or a condition of federal assistance requires the security. (c) If the price of a procurement contract for construction exceeds the small procurement amount specified in § 13–109 of this title for construction, a procurement officer shall require a contractor to provide security as required under Title 17, Subtitle 1 of this article. (d) A procurement officer may require a contractor to provide a performance bond or other security on a procurement contract for supplies, services, or construction related services if: (1) circumstances warrant security; and (2) the price of the procurement contract exceeds the small procurement amount specified in § 13–109 of this title. (e) (1) The Board shall adopt regulations to establish separate surety bond forms for procurement officers to use to require security for: (i) fixed–price contracts; and (ii) multiyear contracts. (2) The form for multiyear contracts shall provide for annual and renewable contracts.

Md. Code, State Finance and Procurement § 13-217

(a) In this section, “multi–year contract” means a procurement contract that requires appropriations for more than 1 fiscal year. (b) (1) A unit may enter into a multi–year contract subject to: (i) standards established by the Board; and (ii) regulations adopted by the primary procurement unit that is responsible for the type of procurement involved. (2) A multi–year contract shall be subject to review and approval by that primary procurement unit. (c) A multi–year contract may not be approved unless each unit reviewing the multi–year contract determines that: (1) the estimated requirements of the State: (i) cover the period of the multi–year contract; (ii) are reasonably firm; and (iii) are continuing; and (2) the multi–year contract will serve the best interests of the State by encouraging effective competition or otherwise promoting economy in State procurement. (d) (1) If money sufficient for the continued performance of a multi–year contract is not appropriated for any fiscal year, the multi–year contract terminates automatically on the earlier of: (i) the last day of the fiscal year for which money last was appropriated; or (ii) the date provided in the termination clause of the procurement contract. (2) If the multi–year contract is terminated under this subsection, the unit shall reimburse the contractor for the reasonable value of any nonrecurring costs that were: (i) incurred as a result of the multi–year contract; but (ii) not amortized in the price of the supplies or services delivered under the multi–year contract. (3) The cost of termination under this subsection may be paid from any appropriation available for that purpose. (e) Except as provided in subsection (f) of this section, each multi–year contract, including a lease of real property, shall include an automatic termination clause that: (1) is not inconsistent with the requirements of subsection (d) of this section; and (2) discharges both parties to the multi–year contract from future performance of that contract, but not from their existing obligations. (f) (1) On the recommendation of the Secretary of General Services, the Board may waive the requirement to include an automatic termination clause under subsection (e) of this section for a multi–year contract to procure energy generated from a Tier 1 renewable source or a Tier 2 renewable source, as defined in § 7–701 of the Public Utilities Article. (2) In determining whether or not to grant a waiver under paragraph (1) of this subsection, the Board shall consider the effect of imposing the termination clause requirement under subsection (e) of this section on the ability of the energy supplier to obtain financing for the renewable energy generation project that produces the energy that the State is contracting to procure.

Md. Code, State Finance and Procurement § 13-218

(a) Each procurement contract shall include clauses covering: (1) termination for default; (2) termination wholly or partly by the State for its convenience if the head of the primary procurement unit determines that termination is appropriate; (3) variations that occur between estimated and actual quantities of work in a procurement contract; (4) liquidated damages, as appropriate; (5) specified excuses for nonperformance; (6) except for real property leases, the unilateral right of the State to order in writing: (i) changes in the work, if the changes are within the scope of the procurement contract; and (ii) a temporary stop or delay in performance; (7) the obligation of the contractor to comply with the political contribution reporting requirements under Title 14 of the Election Law Article, to which the contractor may be subject as required under § 17–402 of this article; and (8) nonvisual access for information technology as required under § 3A–312 of this article. (b) In addition to the clauses required under subsection (a) of this section, a procurement contract for construction shall include: (1) a clause providing for contract modification if the condition of a site differs from the condition described in the specifications; and (2) a clause covering the requirements for notice of contract claims, submission of contract claims, and resolution of contract claims under § 15–219 of this article. (c) Each procurement contract shall include a clause that gives to the parties notice that preexisting regulations apply to the procurement contract in accordance with § 11–206 of this article. (d) At any time after the parties enter into a procurement contract they may include additional clauses in the procurement contract, by consent, without consideration. (e) A clause required under this section for contract modification of or change orders to a procurement contract for construction shall: (1) make each contract modification or change order that affects the price of the procurement contract subject to: (i) prior written approval from the unit and any other person responsible for the procurement contract; and (ii) prior certification by the fiscal authority responsible for the unit about: 1. the availability of money; and 2. the effect of the contract modification or change order on the project budget or the total construction cost; and (2) prohibit the contract modification or change order if the certification by the fiscal authority discloses that the contract modification or change order will increase the cost beyond budgeted and available money, unless: (i) sufficient additional money is made available; or (ii) the scope of the project is adjusted to allow completion within the project budget.

Md. Code, State Finance and Procurement § 13-218.1

§13–218.1. (a) In this section, “service contract” has the meaning stated in § 13–401 of the State Personnel and Pensions Article. (b) (1) At least 60 days before the issuance of a solicitation for a service contract that is not exempt under § 13–403(c) or § 13–404(b) of the State Personnel and Pensions Article, the unit shall provide the exclusive representative of the employees who may be affected by the service contract with: (i) written notice of: 1. work that is being proposed for contracting; and 2. contracting procedures, requirements, timetables, and employee rights as provided in Title 13, Subtitle 4 of the State Personnel and Pensions Article; and (ii) a reasonable opportunity to meet and discuss alternatives to the proposed service contract. (2) (i) 1. Except as provided in subsubparagraph 2 of this subparagraph, this paragraph applies to a solicitation for a service contract for janitorial services. 2. This paragraph does not apply to a service contract for janitorial services under Title 14, Subtitle 1 of this article. (ii) In consultation with the Department of General Services, the Board shall adopt regulations concerning a solicitation for a service contract for janitorial services to require that a bidder or offeror delineate its costs by category, including: 1. labor; 2. cleaning supplies; and 3. projected man–hours to satisfactorily complete the service. (c) A violation of this section does not constitute grounds to challenge or appeal an award of a procurement or the process through which the procurement was conducted.

Md. Code, State Finance and Procurement § 13-219

(a) This section is broadly applicable to all procurements by the State. (b) Each contract for procurement shall include a nondiscrimination clause as provided in this section. (c) The nondiscrimination clause shall: (1) prohibit discrimination in any manner by the contractor against an employee or applicant for employment because of sex, sexual orientation, gender identity, disability, race, age, color, creed, or national origin; (2) require the contractor to include a similar clause in every subcontract except a subcontract for standard commercial supplies or raw materials; and (3) require each contractor and subcontractor subject to this clause to post conspicuously a notice that sets forth the provisions of the clause in a place that is available to employees and applicants for employment. (d) If the nondiscrimination clause is omitted from a contract or subcontract subject to this section, the State may declare the contract to be void. In that event, the contractor is entitled to the reasonable value of work that has been performed and materials that have been provided. (e) If a contractor willfully fails to comply with the requirements of the nondiscrimination clause and the contract is partly executory, the State may compel the contractor to continue to perform under the contract, but the State: (1) is liable for no more than the reasonable value of work performed and materials provided after the date on which the breach of contract was or should have been discovered; and (2) shall deduct any money that has been paid under the contract from the money that becomes due under item (1) of this subsection. (f) If a subcontractor willfully fails to comply with the requirements of a nondiscrimination clause, the contractor may void the subcontract. In that event, the contractor is liable for no more than the reasonable value of work performed or materials provided. (g) (1) Any person, including an employee or prospective employee, who has information about a violation of this section or a nondiscrimination clause may inform the Board. (2) The Board: (i) shall cause an immediate investigation of the charge; and (ii) if it concludes that the charge is true, may invoke any remedy available by law.

Md. Code, State Finance and Procurement § 13-220

(a) In this section, “established catalog price” means the price included in the most current catalog, price list, schedule, or other form that: (1) is regularly maintained by the manufacturer or supplier of an item; (2) is published or available for inspection by customers; and (3) states: (i) prices at which sales are currently or were last made to the general buying public; or (ii) discounted prices at which sales are currently or were last made to local, State, or federal governmental units. (b) This section applies to all procurements by units except: (1) a procurement for which the price will be established by competitive sealed bidding; or (2) a lease of real property or an amendment to a lease of real property. (c) An offeror or contractor shall submit cost and price information for a procurement contract, change order, or contract modification if the price: (1) is expected to exceed $100,000 or a smaller amount set by the procurement officer; and (2) is not: (i) based on adequate price competition; (ii) based on the established catalog or market price of commercial items sold in substantial quantities to a significant number of buyers; or (iii) set by law. (d) An offeror or contractor required to submit cost and price information shall certify that, to the best knowledge of the offeror or contractor, the information is: (1) accurate; (2) complete; and (3) current as of a specific date that: (i) has been determined by the procurement officer and the offeror or contractor; and (ii) occurs before the conclusion of price discussions. (e) Each procurement contract, change order, or contract modification for which a cost and price certificate is required shall contain a provision that the price, including profit or fee, shall be reduced to exclude any significant price increases in a component that result because the contractor provided cost or price information that, as of the date specified under subsection (d)(3) of this section, was inaccurate, incomplete, or not current.

Md. Code, State Finance and Procurement § 13-222

(a) For a State procurement contract for $10,000 or more, except as provided in subsection (c) of this section, at the time a bid or proposal for any State procurement contract is submitted, the bidder or offeror shall certify to the procurement officer that: (1) the bidder or offeror has paid all taxes, unemployment insurance contributions, reimbursement payments, and interest not barred by limitations and payable to the Comptroller, the Department of Assessments and Taxation, or the Maryland Department of Labor or has provided for payment in a manner satisfactory to the unit responsible for collection; and (2) if the bidder or offeror is a vendor of tangible personal property, the bidder or offeror possesses a valid sales and use tax license under Title 11, Subtitle 7 of the Tax – General Article. (b) Before a unit awards any procurement contract for $100,000 or more, the unit shall verify through the Office of the Comptroller: (1) that all taxes, unemployment insurance contributions, reimbursement payments, and interest not barred by limitations and payable by the contractor to the Comptroller, the Department of Assessments and Taxation, and the Secretary of Labor are paid or that payment has been provided for in a manner satisfactory to the unit responsible for collection; and (2) if the contractor is a vendor of tangible personal property, that the contractor possesses a valid sales and use tax license under Title 11, Subtitle 7 of the Tax – General Article. (c) The Board may waive the requirements of this section if the Board determines that: (1) the procurement is essential or in the best interests of the State; and (2) there is no other known source for the procurement at a reasonable cost. (d) In any solicitation, a unit shall provide notice of the requirements of this section.

Md. Code, State Finance and Procurement § 13-223

(a) Each procurement contract shall include the following clause: “The contractor, architect, or engineer warrants that it has not employed or retained any person, partnership, corporation, or other entity, other than a bona fide employee, bona fide agent, bona fide salesperson, or commercial selling agency working for the contractor, architect, or engineer, to solicit or secure this agreement, and that it has not paid or agreed to pay any person, partnership, corporation, or other entity, other than a bona fide employee, bona fide salesperson, or commercial selling agency, any fee or other consideration contingent on the making of this agreement.” (b) (1) (i) Except as provided in subparagraph (ii) of this paragraph, unless a person is a bona fide employee, bona fide salesperson, or commercial selling agency working for the contractor, the person may not offer or agree to solicit or secure a procurement contract under this subtitle if the person’s fee is contingent on, or results from, the making of the procurement contract. (ii) A regulated lobbyist, who is described in § 5–702(a)(1), (2), or (3) of the General Provisions Article, may not offer or agree to solicit or secure a procurement contract under this subtitle if the lobbyist’s fee is contingent on, or results from, the making of the procurement contract. (2) (i) Except as provided in subparagraph (ii) of this paragraph, a contractor or a person who provides architectural or engineering services may not offer to pay a fee or other consideration that is contingent on the making of a procurement contract under this article. (ii) This paragraph does not apply to a payment to a bona fide employee, bona fide salesperson, or commercial selling agency working for the contractor or person providing architectural or engineering services. (3) An employee of a unit may not solicit or secure or offer to solicit or secure a procurement contract under this article between the unit and any other person for which the employee is paid or is to be paid a fee or other consideration that is contingent on the making of the procurement contract.

Md. Code, State Finance and Procurement § 13-224

(a) (1) In this section the following words have the meanings indicated. (2) “Children of current or former recipients” has the meaning stated in § 5–304 of the Human Services Article. (3) “Department” means the Department of Human Services. (4) “Eligible contract” means a procurement contract designated by the Board as appropriate for the execution of a hiring agreement. (5) “FIP” means the Family Investment Program established under Title 5, Subtitle 3 of the Human Services Article. (6) “Former recipient” has the meaning stated in § 5–304 of the Human Services Article. (7) “Foster youth” has the meaning stated in § 5–304 of the Human Services Article. (8) “Hiring agreement” means an agreement entered into by the Department or a local department and an entity doing business with the State under which the Department or the local department and the entity agree to work cooperatively in endeavoring to identify and hire current and former FIP recipients, children of current or former recipients, foster youth, and obligors to fill job openings of the entity. (9) “Local department” means a local department of social services in a county or in Baltimore City created or continued under § 3–201(a) of the Human Services Article. (10) “Obligor” has the meaning stated in § 10–101 of the Family Law Article. (b) On or before October 1, 1998, the Board, in consultation with the Department, shall designate the types of procurement contracts that are eligible contracts. (c) (1) On or before December 1, 1998, the Department shall develop a model hiring agreement form that shall be completed by the Department or a local department and an entity in conjunction with the award of an eligible contract. (2) The model hiring agreement form shall include the following provisions: (i) the entity will: 1. inform the Department or the local department, as appropriate, of all of the entity’s job openings; 2. declare the Department or the local department, as appropriate, its “first source” in identifying and hiring candidates to fill those job openings; 3. work cooperatively with the Department or the local department, as appropriate, to develop any necessary training programs that will enable current and former FIP recipients, children of current or former recipients, foster youth, and obligors in qualifying for and securing the positions; 4. give first preference and first consideration to the extent permitted by law and any existing labor agreements to candidates referred to the entity by the Department or the local department, as appropriate; 5. agree to give candidates referred to the entity by the Department or the local department, as appropriate, priority in the filling of a job opening if the candidate meets the qualifications of the position; 6. provide the Department or the local department, as appropriate, with information on the disposition of all referrals made by the Department or the local department, as appropriate, including an explanation of why any such candidate was not hired or considered qualified; 7. provide the Department or the local department, as appropriate, with information regarding the progress and employment status of those candidates referred by the Department or the local department, as appropriate, that the entity hired; and 8. designate a specific individual that the Department or the local department, as appropriate, may contact in regard to the provisions of the hiring agreement; and (ii) the Department or the local department, as appropriate, will assign an account representative to the entity who will: 1. receive and process all of the entity’s job notifications; 2. refer only screened and qualified candidates to the entity; 3. assist in the development of any mutually agreed upon training programs, internship programs, or both that will better prepare current and former FIP recipients, children of current or former recipients, foster youth, and obligors for employment with the entity; 4. arrange follow–up and post–hire transitional/supportive services, such as child care and transportation, as necessary and appropriate; and 5. review and evaluate the effectiveness of the hiring agreement with the entity and make modifications in the agreement as necessary and appropriate. (d) Each year, the Department and any local departments that have entered into hiring agreements shall submit a report to the Board and, subject to § 2–1257 of the State Government Article, the General Assembly on: (1) the number of hiring agreements executed; (2) the number of current and former FIP recipients, children of current or former recipients, foster youth, and obligors hired by an entity with which a hiring agreement was executed; and (3) the effectiveness of each hiring agreement in obtaining employment for current and former FIP recipients, children of current or former recipients, foster youth, and obligors.

Md. Code, State Finance and Procurement § 13-225

(a) (1) In this section the following words have the meanings indicated. (2) “Payment security” has the meaning stated in § 17-101 of this article. (3) “Performance security” has the meaning stated in § 17-101 of this article. (b) (1) If a contractor has furnished 100% payment security and 100% performance security in accordance with Title 17, Subtitle 1 of this article under a State procurement contract for construction, the percentage specified in the contract for retainage may not exceed 5% of the total amount. (2) In addition to retainage, a primary procurement unit and the Maryland Transportation Authority may withhold from payments otherwise due a contractor any amount that the unit reasonably believes necessary to protect the State’s interest. (3) Retainage withheld by a primary procurement unit and the Maryland Transportation Authority may be deposited in an interest-bearing escrow account in accordance with § 15-108 of this article. (c) (1) A contractor may not retain a percentage of payments due a subcontractor that exceeds the percentage of payments retained by the primary procurement unit or the Maryland Transportation Authority. (2) Paragraph (1) of this subsection may not be construed to prohibit a contractor from withholding any amount in addition to retainage if the contractor determines that a subcontractor’s performance under the subcontract provides reasonable grounds for withholding the additional amount. (d) (1) A subcontractor may not retain a percentage of payments due a lower tier subcontractor that exceeds the percentage of payments retained from the subcontractor. (2) Paragraph (1) of this subsection may not be construed to prohibit a subcontractor from withholding any amount in addition to retainage if the subcontractor determines that a lower tier subcontractor’s performance under the subcontract provides reasonable grounds for withholding the additional amount. (e) If retainage has been placed in escrow under § 15-108 of this article, each payment of retainage shall include a pro rata portion of interest earned. (f) This section may not be construed to limit the application of the provisions of Title 17, Subtitle 1 of this article.

Md. Code, State Finance and Procurement § 13-226

(a) Unless otherwise prohibited by law, a primary procurement unit may conduct procurement, including the solicitation of bids or proposals, evaluation, award, execution, and administration of a contract, by electronic means as provided in the Uniform Electronic Transactions Act in Title 21 of the Commercial Law Article. (b) Bidding or submitting a proposal on a procurement contract by electronic means shall constitute consent by the bidder or proposer to conduct by electronic means all elements of the procurement of that contract which the unit agrees to conduct by electronic means. (c) (1) (i) Except as provided in paragraph (2) of this subsection, a unit utilizing electronic means to conduct procurement or a private contractor furnishing to the State electronic means for conducting procurement may charge a reasonable fee, on approval by the Chief Procurement Officer, to the bidder, proposer, or each contract awardee for the use of the electronic means. (ii) Any fees collected under subparagraph (i) of this paragraph that are due to the State shall be deposited in the Operations Revenue Fund established under § 13–102.1(c) of this subtitle. (2) Unless approved by the Board of Public Works, a fee may not be charged under this subsection. (d) The terms and conditions of a procurement conducted under this section shall comply with the Uniform Electronic Transactions Act in Title 21 of the Commercial Law Article. SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 1, 2025. Approved by the Governor, April 8, 2025.

Md. Code, State Finance and Procurement § 13-227

(a) If a prime contractor requires a subcontractor to provide a bid, performance, or payment bond on a procurement contract for services, supplies, or construction related services with the State, the prime contractor may not require bid, performance, or payment bonding from the subcontractor that is more stringent than the bonding requirements in §§ 13–207 and 13–216 of this subtitle and § 17–104 of this article. (b) A bid, performance, or payment bond that is provided by a subcontractor under subsection (a) of this section shall be accepted by the prime contractor if the bond would be accepted by the State and provided by: (1) a surety company authorized to do business in the State; or (2) the Maryland Small Business Development Financing Authority established in Title 5, Subtitle 5 of the Economic Development Article. (c) In a solicitation or pre–bid conference for a procurement contract for services, supplies, or construction related services with the State, the procurement agency shall provide notice to all bidders that bid security shall be: (1) a bond provided by a surety company authorized to do business in this State; (2) a bond provided by an individual surety that meets the requirements of §§ 13–207 and 13–216 of this subtitle and § 17–104 of this article; (3) cash; or (4) another form of security: (i) authorized by federal or State regulation; or (ii) that is satisfactory to the unit awarding the contract.

Md. Code, State Finance and Procurement § 13-228

(a) (1) In this section the following words have the meanings indicated. (2) “Aggregator” means a person that: (i) provides or contracts for environmental outcomes; or (ii) provides or raises capital to finance delivery of environmental outcomes. (3) “Environmental outcome” means a commodity that is modeled or directly measured as a single, quantifiable, and certified unit of improvement to the environment, including a nutrient or carbon benefit. (4) “Environmental outcomes project” means a project designed to secure environmental outcomes. (5) “Evaluator” means a person other than an aggregator that determines whether environmental outcomes have been achieved based on defined performance measures. (6) “Outcome payment” means the money paid when a pay–for–success contract performance measure is met. (7) “Quantification plan” means a plan in which an aggregator describes: (i) the method that will be used to measure or model environmental outcomes and co–benefits under a pay–for–success contract; (ii) the compliance monitoring that will occur to ensure that the actions proposed in the pay–for–success contract are taken and maintained over the life of the project; (iii) verification steps that will be carried out by the State to confirm model results or accurate measurement of environmental outcomes; and (iv) the timeline for proposed payments under the pay–for–success contract. (b) The General Assembly finds and declares that: (1) pay–for–success contracting shifts the risk of performance to the contractor because government payment is made only on achievement of outcomes; (2) social and environmental impact investment is growing dramatically, and investors are seeking ways to finance and execute pay–for–success contracts in the State to expand the success of Chesapeake Bay restoration efforts and achieve other public outcomes; and (3) it is in the best interest of the State to include pay–for–success contracting as a contracting option, particularly for units responsible for land conservation and environmental protection, enhancement, and restoration. (c) A unit may enter into a pay–for–success contract only if the procurement officer of the unit determines that: (1) the contract will produce estimated financial savings or other quantifiable public benefits for the State; and (2) a substantial portion of the outcome payment due under the contract will be paid only after specific outcomes have been documented. (d) (1) This subsection applies only to contracts by: (i) the Department of Agriculture; (ii) the Department of the Environment; (iii) the Department of Natural Resources; (iv) the Department of Transportation; (v) the Maryland Environmental Service; and (vi) the Department of General Services. (2) This subsection does not apply to the purchase of nitrogen load reductions with funds from the Clean Water Commerce Account of the Bay Restoration Fund established under § 9–1605.2 of the Environment Article. (3) (i) A unit specified in paragraph (1) of this subsection may enter into a pay–for–success contract with an aggregator to purchase: 1. delivery of an environmental outcomes project; or 2. already certified environmental outcomes. (ii) Other State and local entities may participate in a pay–for–success contract under this subsection in accordance with an intergovernmental cooperative purchasing agreement under § 13–110 of this title. (4) A pay–for–success contract executed under this subsection shall include: (i) a quantification plan approved by the unit; (ii) a statement of the environmental outcomes to be procured under the contract and a description of how defined performance measures will demonstrate progress in achieving these outcomes; (iii) requirements regarding the content and frequency of progress reports regarding the achievement of environmental outcomes; (iv) a methodology for calculating the amount and timing of outcome payments to an aggregator when the evaluator determines that the aggregator has achieved a defined performance measure; (v) a statement that the basis of payment is the determination of achievement of environmental outcomes by the evaluator and that payments for those outcomes do not require itemized billing or cost documentation by the aggregator; and (vi) terms addressing: 1. compliance with State law; 2. nondiscrimination in employment; 3. contractor indemnification; 4. termination for default; and 5. the unit’s right to inspect the environmental outcomes project. (5) A pay–for–success contract executed under this subsection may include provisions regarding: (i) long–term maintenance and monitoring of environmental services, including the establishment of a stewardship fund; (ii) a requirement that the unit hold contract funds in a reserve account for outcome payments; (iii) for agriculture services, payment for achievement of baseline water quality requirements for nitrogen, phosphorus, or sediment; or (iv) terminations prior to the first payment under the contract for the purpose of selling environmental outcomes without penalty to another entity or for any other reason. (e) (1) Beginning July 2025 and every 3 years thereafter, the Maryland Environmental Service shall review and evaluate the results of all pay–for–success contracts completed under this section for the previous 3 fiscal years. (2) The review conducted under paragraph (1) of this subsection shall include: (i) the cost of each project performed under a contract; (ii) the length of time taken to complete the project, from the date of notice to proceed until completion; (iii) the average cost and project duration for each project type; and (iv) whether each project met the terms of its contract. (3) Each unit that enters into a pay–for–success contract under this section shall execute an agreement with the Maryland Environmental Service to reimburse the Maryland Environmental Service for each of the unit’s completed contracts the Maryland Environmental Service reviews under this section. (4) The Maryland Environmental Service shall provide copies of each review conducted under this subsection to: (i) each unit for which the Maryland Environmental Service reviewed and evaluated a contract; and (ii) in accordance with § 2–1257 of the State Government Article, the Senate Committee on Education, Energy, and the Environment, the Senate Budget and Taxation Committee, the House Environment and Transportation Committee, and the House Appropriations Committee.

Md. Code, State Finance and Procurement § 13-229

(a) Before a unit awards any procurement contract for an amount above $500,000, the recommended awardee may be required to submit a workforce diversity plan to the procurement officer. (b) Before a unit awards any procurement contract for an amount above $250,000, the recommended awardee may be required to submit a supplier diversity plan to the procurement officer. (c) The Governor’s Office of Small, Minority, and Women Business Affairs in consultation with the Office of State Procurement shall adopt regulations to carry out this section that include: (1) suggested content to be included in a workforce or supplier diversity plan; and (2) guidance for units to comply with the requirements of this section.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatutesFetched: 10/16/2026