# Division 4. Bid and Contract Security

Codified through Bill No. CB-018-2026, adopted May 12, 2026, effective July 24, 2026. Source: Municode, Supplement 2026 Update 2. Editorial notes and legislative history omitted.

## Division 4. Bid and Contract Security

### Sec. 10A-132. Bonds; generally

Prince George's County, Md., Code § 10A-132 (2026)

(a) Subject to Subsection (b), below, unless otherwise required by State or Federal law or regulation or as a condition to State or Federal assistance, no bid, performance, or payment bonds may be required by the Purchasing Agent to be posted if the contract price does not exceed One-Hundred Thousand Dollars ($100,000).

(b) Additional bonding assistance for County-based small businesses and Locally-owned and Operated Businesses. Unless otherwise required by State or Federal law or regulation or as a condition to State or Federal assistance, no bid, performance, or payment bonds may be required of a County-based small business, County-based Minority Business Enterprises, or Locally-owned and Operated Business by the Purchasing Agent except in accordance with the following:

  (1) For procurement contracts more than $250,000 and up to $10,000,000 in value, required bonding shall be no more than 40% of the value of the contract,

  (2) For procurement contracts above $10,000,000 in value, required bonding shall be no more than 75% of the value of the contract, and

  (3) For procurement contracts of $250,000 or less, bonding shall not be required.

(c) As a written condition of a procurement award or procurement contract authorized under this Subtitle, the Purchasing Agent or the Purchasing Agent's designee may require responsive bidders or an award recipient, excluding County-based small businesses and Locally-owned and Operated Businesses, to provide bid, performance, and/or payment bonding assistance to County-based small businesses and Locally-owned and Operated Businesses in order to assist in complying with Division 7 of this Subtitle.

(d) Notwithstanding the requirements of Subsection (b), the Purchasing Agent shall be authorized to waive or modify said requirements if the Purchasing Agent determines such waiver or modification is in the best interest of the County.

### Sec. 10A-133. Bid security

Prince George's County, Md., Code § 10A-133 (2026)

(a) A bid security shall be required for all construction contracts when the contract price is estimated by the County to exceed Two Hundred and Fifty Thousand Dollars ($250,000). The Purchasing Agent may also require such bid security as may be deemed necessary for any other contract required to be awarded by competitive sealed bidding or competitive sealed proposal if the contract is Two Hundred and Fifty Thousand Dollars ($250,000) or greater. The bid security shall be a bond provided by a surety company authorized to do business in Maryland, cash, or the equivalent of cash, in a form satisfactory to the County.

(b) The bid security shall be in an amount equal to no more than 5% of the amount of the bid or price proposal and shall be an amount determined by the Purchasing Agent or designee.

(c) When the Invitation for Bids or Request for Proposals requires a bid security be provided, noncompliance requires that the bid be rejected; provided, however, that the Purchasing Agent may set forth by regulation exceptions to this requirement in the event of substantial compliance.

(d) If a bidder is permitted to withdraw its bid before award because of mistake in the bid, no action shall be taken against its bid security.

(e) Businesses may be permitted to file with the Purchasing Agent an annual bid security in an amount established by the Purchasing Agent in lieu of furnishing individual bid securities.

### Sec. 10A-134. Performance and payment bonds

Prince George's County, Md., Code § 10A-134 (2026)

(a) Prior to the award of any construction contract exceeding One Hundred Thousand Dollars ($100,000) in amount, a performance bond executed by a surety company authorized to do business in this State, or the equivalent in cash, or other security satisfactory to the County, and in such amount as shall be deemed adequate, for the protection of the County must be filed with the County. Certificates of Guarantee issued by the Development Guaranty Group of Prince George's County, Inc. or any other approved organization pursuant to Section 23-116 of this Code will not be deemed to be satisfactory security for the purpose of satisfying the Bond requirements for County contracts.

(b) Prior to the award of any construction contract exceeding One Hundred Thousand Dollars ($100,000) in amount, a payment bond executed by a surety company authorized to do business in this State, or the equivalent in cash, or other security satisfactory to the County for the protection of all persons supplying labor and materials, including lessors of equipment to the extent of the fair rental value thereof, to the contractor or his subcontractor in the prosecution of the work provided for in the contract for the use of each such person must be filed with the County. The bond shall be in an amount not less than fifty percent (50%) of the total amount payable by the terms of the contract. Certificates of Guarantee issued by the Development Guaranty Group of Prince George's County, Inc. or any other approved organization pursuant to Section 23-116 of this Code will not be deemed to be satisfactory security for the purpose of satisfying the Bond requirements for County contracts.