# Public Utilities (GPU)

## Title 20. Procurement

### Subtitle 1. Water and Sewer Procurement Contracts

#### Section 20-101

(a) In this subtitle the following words have the meanings indicated.

(b) "Design/build contract" means a contract that provides for both architectural and engineering design services and construction services as a part of a single contract.

(c) "Evaluated bid price" means the price of a bid after adjustment in accordance with objective measurable criteria.

(d) "Facilities construction contract" means a contract that provides services for the construction of:

  (1) a water or wastewater treatment plant;

  (2) a water or wastewater pumping station and related force mains in the pumping station site limits;

  (3) a water storage facility;

  (4) a wastewater storage facility;

  (5) a building for Commission purposes; or

  (6) a pipeline.

(e) "Objective measurable criteria" means standards that enable the Commission to compare the economy, effectiveness, or value of the subject of the bids.

#### Section 20-102

This subtitle applies only to:

(1) design/build contracts; and

(2) construction contracts.

#### Section 20-103

If the Commission decides to proceed with the design or construction of a water supply or sanitary sewer system, the Commission shall comply with the requirements of this subtitle.

#### Section 20-104

(a) The Commission shall provide an opportunity for a hearing before proceeding with the design or construction of a water supply or sanitary sewer system.

(b) Subject to subsection (c) of this section, the Commission:

  (1) shall advertise in newspapers and technical media that the Commission considers appropriate for bids or proposals for design or construction services for any part of a water supply or sanitary sewer system; and

  (2) may readvertise any part of the services needed if the Commission considers the prices quoted in response to a prior advertisement to be unreasonable.

(c)

  (1) Subject to paragraph (2) of this subsection, the Commission may use day labor to complete any part of the design or construction of a water supply or sanitary sewer system.

  (2) Notwithstanding Sec. 20-105(a) of this subtitle, the Commission may spend up to $15,000 for day labor for any part of construction services without advertising for or receiving bids or proposals.

(d)

  (1) Except as provided in paragraph (2) of this subsection, the Commission may enter into any type of contract under this subtitle that promotes the best interest of the Commission.

  (2) The Commission:

    (i) may not enter a cost-plus-percentage-of-cost contract; and

    (ii) shall prohibit a cost-plus-percentage-of-cost subcontract under a contract with the Commission.

(e) The Commission may only enter into a design/build contract for a facilities construction contract with costs exceeding $2,000,000.

(f) The Commission may reject any bid or proposal.

(g)

  (1) The Commission may require a contract to be secured by bonds, penalties, and conditions.

  (2) Security authorized under this subsection is enforceable in any court of competent jurisdiction.

(h) The Commission:

  (1) may adopt regulations to establish a prequalification process for bidders or offerors; and

  (2) shall adopt regulations to govern discussions held with offerors under Sec. 20-105(c)(3) of this subtitle.

#### Section 20-105

(a) The Commission shall award contracts by:

  (1) competitive sealed bids in accordance with subsection (b) of this section; or

  (2) competitive sealed proposals in accordance with subsection (c) of this section.

(b)

  (1) If a contract is awarded based on competitive sealed bids, the Commission shall seek bids by issuing an invitation for bids.

  (2) Subject to paragraphs (3) through (5) of this subsection, an invitation for bids shall:

    (i) include the contract specifications, including the expected degree of minority business enterprise participation provided under Subtitle 2 of this title; and

    (ii) state whether the contract will be awarded based on the lowest bid price or the lowest evaluated bid price.

  (3) If a contract will be awarded based on an evaluated bid price, the invitation for bids shall include the objective measurable criteria by which the lowest evaluated bid price will be determined.

  (4) The Commission shall award contracts based on competitive sealed bids to the responsible bidder who submits the lowest bid price or lowest evaluated bid price, as appropriate.

  (5) If the Commission determines that an initial preparation of specifications for price bids is impractical, the invitation for bids may:

    (i) include a request for an unpriced technical offer or sample; and

    (ii) direct a bidder to submit:

      (1) a sealed price bid with the unpriced technical offer or sample; or

      (2) a price bid after the Commission:

      (A) evaluates the technical offer or sample; and

      (B) finds that the offer or sample is acceptable under the criteria set forth in the invitation for bids.

  (6) If an invitation for bids includes a request for an unpriced technical offer or sample, the Commission shall:

    (i) consider the price bid of a bidder whose technical offer or sample is acceptable;

    (ii) return unopened the price bid of a bidder whose technical offer or sample is unacceptable; and

    (iii) award the contract to the responsible bidder whose technical offer or sample is acceptable and who submits the lowest bid price or lowest evaluated bid price, as specified in the invitation for bids.

(c)

  (1) If a contract is awarded based on competitive sealed proposals, the Commission shall seek proposals by issuing a request for proposals.

  (2) A request for proposals shall include:

    (i) a statement describing the scope of the contract, including the expected degree of minority business enterprise participation provided under Subtitle 2 of this title;

    (ii) the factors, including price, that will be used in evaluating proposals; and

    (iii) the relative importance of each factor.

  (3) After receipt of proposals, but before the contract is awarded, the Commission may conduct discussions with an offeror to:

    (i) obtain the best price for the Commission; and

    (ii) ensure full understanding of the requirements of the Commission, as set forth in the request for proposals and in the proposal.

  (4) The Commission:

    (i) shall treat all responsible offerors fairly and equally; and

    (ii) may allow each responsible offeror to revise the offeror's initial proposal and submit a best and final offer.

  (5) The Commission shall award a contract based on competitive sealed proposals to the responsible offeror who submits the proposal or best and final offer that the Commission determines is the most advantageous to the Commission, considering the evaluation factors set forth in the request for proposals.

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Md. Code Ann., Pub. Util. (as displayed at mgaleg.maryland.gov, October 16, 2026)