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<section article="gpu" article_name="Public Utilities" number="20-104" title_number="20" title_name="Procurement" subtitle_number="1" subtitle_name="Water and Sewer Procurement Contracts">
  <level label="a">
    <text>The Commission shall provide an opportunity for a hearing before proceeding with the design or construction of a water supply or sanitary sewer system.</text>
  </level>
  <level label="b">
    <text>Subject to subsection (c) of this section, the Commission:</text>
    <level label="1">
      <text>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</text>
    </level>
    <level label="2">
      <text>may readvertise any part of the services needed if the Commission considers the prices quoted in response to a prior advertisement to be unreasonable.</text>
    </level>
  </level>
  <level label="c">
    <level label="1">
      <text>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.</text>
    </level>
    <level label="2">
      <text>Notwithstanding § 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.</text>
    </level>
  </level>
  <level label="d">
    <level label="1">
      <text>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.</text>
    </level>
    <level label="2">
      <text>The Commission:</text>
      <level label="i">
        <text>may not enter a cost–plus–percentage–of–cost contract; and</text>
      </level>
      <level label="ii">
        <text>shall prohibit a cost–plus–percentage–of–cost subcontract under a contract with the Commission.</text>
      </level>
    </level>
  </level>
  <level label="e">
    <text>The Commission may only enter into a design/build contract for a facilities construction contract with costs exceeding $2,000,000.</text>
  </level>
  <level label="f">
    <text>The Commission may reject any bid or proposal.</text>
  </level>
  <level label="g">
    <level label="1">
      <text>The Commission may require a contract to be secured by bonds, penalties, and conditions.</text>
    </level>
    <level label="2">
      <text>Security authorized under this subsection is enforceable in any court of competent jurisdiction.</text>
    </level>
  </level>
  <level label="h">
    <text>The Commission:</text>
    <level label="1">
      <text>may adopt regulations to establish a prequalification process for bidders or offerors; and</text>
    </level>
    <level label="2">
      <text>shall adopt regulations to govern discussions held with offerors under § 20–105(c)(3) of this subtitle.</text>
    </level>
  </level>
</section>
