# Housing and Community Development (GHS)

## Title 16. Montgomery County

### Subtitle 4. Service Contracts

#### Section 16-404

(a) The Executive Director  may not certify that the Montgomery Commission has complied with the requirements of this subtitle unless the Montgomery Commission:

  (1) has taken steps to consider alternatives to the service contract, including reorganization, reevaluation of service, and reevaluation of performance;

  (2) has consulted with the certified representative of any Montgomery Commission employees who will be adversely affected if the Montgomery Commission enters into the service contract; and

  (3) has demonstrated, based on a cost comparison analysis utilizing good faith estimates, that the Montgomery Commission will save, by entering into a service contract, at least an amount equal to the lesser of $200,000 or 20% of the estimated net present value of the cost of the service contract.

(b) The Montgomery Commission shall estimate and compare at least the following in the cost comparison analysis:

  (1) direct costs, including fringe benefits and the assumption that the contractor will pay employees who perform work under the service contract, at a minimum, the county living wage rate for Montgomery County;

  (2) indirect overhead costs properly allocable to the bargaining unit work or service contract according to generally accepted accounting principles; and

  (3) any costs associated with unemployment compensation or outplacement assistance for displaced employees.

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Md. Code Ann., Hous. & Cmty. Dev. (as displayed at mgaleg.maryland.gov, October 16, 2026)