Plain Text Law

State Finance and Procurement (GSF) — Title 12. Organization and Supervision of State Procurement

Statutes in effect as of October 1, 2026.

Subtitle 1. State Procurement Organization

Md. Code Ann., State Fin. & Proc. § 12-101 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 1. State Procurement Organization

§ 12–101Copy Citation

(a)
This section does not apply to:
(1)
capital expenditures by the Department of Transportation or the Maryland Transportation Authority, in connection with State roads, bridges, or highways, as provided in § 12–202 of this title; or
(2)
procurements by the Department of General Services for the purpose of modernizing cybersecurity infrastructure for the State valued below $1,000,000.
(b)
(1)
The Board may control procurement by units.
(2)
To implement the provisions of this Division II, the Board may:
(i)
set policy;
(ii)
adopt regulations, in accordance with Title 10, Subtitle 1 of the State Government Article; and
(iii)
establish internal operational procedures consistent with this Division II.
(3)
The Board shall ensure that the regulations of the primary procurement units provide for procedures that are consistent with this Division II and Title 13, Subtitle 4 of the State Personnel and Pensions Article and, to the extent the circumstances of a particular type of procurement or a particular unit do not require otherwise, are substantially the same.
(4)
The Board may delegate any of its authority that it determines to be appropriate for delegation and may require prior Board approval for specified procurement actions.
(5)
Except as limited by the Maryland Constitution, the Board may exercise any control authority conferred on a primary procurement unit by this Division II and, to the extent that its action conflicts with the action of the primary procurement unit, the action of the Board shall prevail.
(c)
On or before December 1 each year, the Department of General Services shall submit a report to the Board on procurements made under subsection (a)(2) of this section that shall include for each procurement:
(1)
the purpose of the procurement;
(2)
the name of the contractor;
(3)
the contract amount;
(4)
the method of procurement utilized;
(5)
the number of bidders who bid on the procurement; and
(6)
the contract term.
(d)
A contract to modernize an information technology system or to proceed with an expedited project as defined in § 3.5–301 of this article shall be expedited for approval by the Board and placed on the agenda of the Board as soon as practicable.
Md. Code Ann., State Fin. & Proc. § 12-102 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 1. State Procurement Organization

§ 12–102Copy Citation

(a)
(1)
The Board shall appoint a Procurement Advisor, who serves at the pleasure of the Board.
(2)
The Procurement Advisor shall:
(i)
ensure that the State’s procurement system is utilizing the most advanced procurement methods and management techniques;
(ii)
examine all procurements that are subject to review by the Board and make recommendations to the Board as to the appropriateness of each procurement, with an emphasis on whether the proposed procurement:
(1)
has been competitively conducted; and
(2)
conforms to provisions of procurement law, procurement regulations, and best management practices;
(iii)
prevent and detect fraud, waste, and abuse and foster competition in the expenditure of State funds in the procurement of supplies, services, or construction;
(iv)
conduct investigations into procurement policies, practices, and procedures, as appropriate;
(v)
investigate complaints made by State employees concerning fraud, waste, and abuse in the procurement process and any alleged violation of the procurement law or regulations;
(vi)
investigate complaints, other than formal bid protests filed under Title 15, Subtitle 2 of this article, made by contractors and other interested parties concerning fraud, waste, and abuse in the procurement process and any alleged violation of the procurement law or regulations;
(vii)
if apparent criminal violations are found in the course of an investigation, report findings to the Board of Public Works, Office of the Attorney General, United States Attorney, and State or local prosecutors, as appropriate;
(viii)
if other apparent violations of law or regulation are found in the course of an investigation, report findings to the Board of Public Works, the appropriate agency head, and any other appropriate body for administrative action;
(ix)
produce and submit to the Board of Public Works and the General Assembly, in accordance with § 2–1257 of the State Government Article, an annual report of the activities of the Procurement Advisor, including:
(1)
all findings and recommendations for improvements to the procurement system; and
(2)
the identification of barriers to effective broad–based competition in State procurement and recommendations for the elimination of these barriers;
(x)
assist agencies and the public with questions regarding procurement policy;
(xi)
establish policies for the effective training of State procurement officials to ensure that the State’s procurement system is utilizing the most advanced procurement methods and management techniques;
(xiii)
review internal audit reports and comment as appropriate;
(xiv)
notify the Legislative Auditor when the Procurement Advisor undertakes an investigation under item (v) or (vi) of this paragraph.
(3)
The Procurement Advisor shall:
(i)
have access to all books, accounts, records, reports, any material related to contracts and procurement, and all other papers and equipment necessary to carry out its responsibilities; and
(ii)
have direct and prompt access to all heads of agencies involved in the expenditure of public funds.
(b)
(1)
(i)
The Board shall appoint a General Counsel, who serves at the pleasure of the Board.
(ii)
The General Counsel shall be an attorney in this State.
(2)
The General Counsel shall:
(i)
provide independent legal advice to the Board;
(ii)
examine all procurements that are subject to review by the Board and make recommendations to the Board as to the legal sufficiency of the procurements, with an emphasis on whether the proposed procurement has been competitively conducted;
(iii)
assist the Procurement Advisor in investigations undertaken by the Procurement Advisor;
(iv)
assist the Procurement Advisor in responding to complaints made by State employees, contractors, and other interested parties concerning fraud, waste, and abuse in the procurement process or any alleged violation of the procurement law and regulations;
(v)
compile information for distribution to State procurement officials relating to recent decisions of the Maryland State Board of Contract Appeals and State and federal courts concerning procurement, including any policy or legal guidance to the procurement officials based on these decisions; and
(vi)
review regulations proposed by the Board for legality and approve them for proposal and adoption.
(3)
The General Counsel shall:
(i)
have access to all books, accounts, records, any material related to contracts and procurement, and all other papers and equipment necessary to carry out its responsibilities; and
(ii)
have direct and prompt access to all heads of agencies involved in the expenditure of public funds.
(c)
In accordance with the State budget, the Board may appoint any additional staff necessary to carry out its responsibilities under this Division II.
Md. Code Ann., State Fin. & Proc. § 12-103 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 1. State Procurement Organization

§ 12–103Copy Citation

(a)
This section does not apply to capital expenditures by the Department of Transportation or the Maryland Transportation Authority, in connection with State roads, bridges, or highways, as provided in § 12-202 of this title.
(b)
Notwithstanding any delegation of authority under § 12-101 of this subtitle, the Board retains full authority to engage in procurement of services and supplies for itself.
(c)
By resolution, the Board may authorize a Board member or a unit to exercise all or any part of the authority of the Board for a specific Board procurement or for a particular class of Board procurements.
Md. Code Ann., State Fin. & Proc. § 12-104 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 1. State Procurement Organization

§ 12–104Copy Citation

(a)
Except as provided in subsection (b) of this section, the Board may modify or waive any requirement under this Division II for a procurement contract or a class of procurement contracts that is to be performed entirely outside the United States, or any lease of real property outside this State, to the extent that:
(1)
the purposes stated in § 11–201(a) of this article are fostered;
(2)
the circumstances require the modification or waiver; and
(3)
foreign or out–of–state contractors are expected to be involved in the procurement.
(b)
The Board may not modify or waive the following requirements:
(1)
§ 14–404 of this article (“Coal in heating systems”);
(2)
Title 16, Subtitle 2 of this article (“Offenses Subject to Debarment”); and
(3)
Title 17 of this article (“Special Provisions –– State and Local Subdivisions”).
Md. Code Ann., State Fin. & Proc. § 12-105 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 1. State Procurement Organization

§ 12–105Copy Citation

(a)
In this section, “Council” means the Procurement Improvement Council.
(b)
There is a Procurement Improvement Council.
(c)
(1)
The Council consists of the following members:
(i)
the State Treasurer;
(ii)
the Chancellor of the University System of Maryland;
(iii)
the Chief Procurement Officer;
(iv)
the Secretary of Information Technology;
(v)
the Secretary of Transportation;
(vi)
the Procurement Advisor of the Board;
(vii)
the Special Secretary for the Office of Small, Minority, and Women Business Affairs;
(viii)
the Secretary of Juvenile Services;
(ix)
the Secretary of Human Services;
(x)
the Secretary of Health;
(xi)
the State Superintendent of Schools;
(xii)
the Comptroller;
(xiii)
the Attorney General;
(xiv)
the following individuals, appointed by the Governor with the advice and consent of the Senate:
(1)
a representative of local government who has expertise in local procurement matters;
(2)
two representatives of social service providers in the State; and
(3)
a representative of a minority–, women–, or veteran–owned business;
(xv)
three members of the general public appointed by the presiding officers of the General Assembly, of whom:
(1)
at least one shall have expertise in State procurement matters; and
(2)
at least two shall represent a minority–, women–, or veteran–owned business;
(xvi)
a member of the Senate, appointed by the President of the Senate; and
(xvii)
a member of the House of Delegates, appointed by the Speaker of the House.
(2)
(i)
If the State Treasurer is unable to attend a meeting of the Council, the Treasurer may designate the Deputy Treasurer to attend the meeting.
(ii)
If a member of the Council listed in paragraph (1)(ii) through (xi) of this subsection is unable to attend a meeting of the Council, the member may designate a senior management staff member with experience in procurement to attend the meeting.
(iii)
If the Comptroller is unable to attend a meeting of the Council, the Comptroller may send a designee to attend the meeting.
(iv)
If the Attorney General is unable to attend a meeting of the Council, the Attorney General may send a designee to attend the meeting.
(d)
The Chief Procurement Officer is Chairman of the Council.
(e)
The Council shall meet at least quarterly each year.
(f)
The Chief Procurement Officer is the principal staff of the Council and the Council shall have any additional staff authorized in accordance with the State budget.
(g)
The Council shall:
(1)
ensure that the State’s procurement system is utilizing the most advanced procurement methods and management techniques, including policies, procedures, and forms for all procurement activity and contract management;
(2)
effect and enhance communication between State units on procurement matters, with an emphasis on disseminating information on current developments and advances in procurement methods and management;
(3)
provide a forum for the discussion of specific procurement issues and problems that arise, including:
(i)
procurement officer training;
(ii)
risk analysis and insurance requirements;
(iii)
management of eMaryland Marketplace and other Internet procurement resources;
(iv)
use of eMaryland Marketplace and compliance with § 17–502 of this article;
(v)
use of intergovernmental cooperative purchasing agreements;
(vi)
strategies to increase the participation of small, minority–owned, and women–owned businesses in procurement contracts; and
(vii)
any other issues or problems identified by the Council;
(4)
advise the Board on problems in the procurement process and make recommendations for improvement of the process;
(5)
review existing procurement regulations to:
(i)
determine whether they fulfill the intent and purpose of the law, especially as it relates to fostering broad–based competition; and
(ii)
make recommendations on the regulations, if revising and restructuring them will result in easier understanding and use; and
(6)
advise the General Assembly on proposed legislation in order to enhance the efficiency and transparency of State procurement.
Md. Code Ann., State Fin. & Proc. § 12-106 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 1. State Procurement Organization

§ 12–106Copy Citation

The Board may establish other advisory bodies.
Md. Code Ann., State Fin. & Proc. § 12-107 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 1. State Procurement Organization

§ 12–107Copy Citation

(a)
This section does not apply to capital expenditures by the Department of Transportation or the Maryland Transportation Authority, in connection with State roads, bridges, or highways, as provided in § 12–202 of this title.
(b)
Subject to the authority of the Board, jurisdiction over procurement is as follows:
(1)
the State Treasurer may engage in or control procurement of banking and financial services, insurance, and insurance services, as provided in Division I of this article and Article VI, § 3 of the Maryland Constitution;
(2)
the Department of General Services may:
(i)
engage in or control procurement of:
(1)
leases of real property, including leases under Title 4, Subtitle 3 of this article;
(2)
supplies, including supplies under Title 4, Subtitle 3 of this article, but excluding insurance and motor vehicle leases;
(3)
construction, including construction under Title 4, Subtitle 4 of this article;
(4)
construction related services, including those under Title 4, Subtitle 4 of this article;
(5)
architectural or engineering services under Title 13, Subtitle 3 of this article;
(6)
services by a unit, subject to any limitation in this Division II;
(7)
leases of motor vehicles, as provided in Title 3, Subtitle 5 of this article;
(8)
construction and construction–related services for State correctional facilities;
(9)
supplies, materials, and equipment in support of construction and construction–related services for State correctional facilities in accordance with this Division II and Title 2 and Title 10, Subtitle 1 of the Correctional Services Article;
(10)
telecommunication equipment, systems, or services, as provided in Title 3.5, Subtitle 4 of this article;
(11)
information technology system modernization, as provided in Title 3.5, Subtitle 3 of this article; and
(12)
cybersecurity upgrades and modernization, as provided in Title 3.5, Subtitle 3 of this article;
(ii)
while retaining oversight, delegate control of procurement activity to units with expertise in specified types of procurement;
(iii)
develop performance metrics for procurement activity and implement strategic sourcing when appropriate;
(iv)
compile comprehensive statistics on the procurement system by agency, amount, and type of procurement;
(v)
effect and enhance communication on procurement matters, with an emphasis on disseminating information on current developments and advances in the management of the State procurement system;
(vi)
assist units with questions regarding procurement policy;
(vii)
oversee the implementation of procurement officer training;
(viii)
oversee the implementation of appropriate risk analysis and insurance requirements for State procurement; and
(ix)
coordinate with governmental entities and local entities to maximize use of intergovernmental purchasing agreements established in accordance with § 13–110 of this article, including working with the State Department of Education to procure local food for local school systems in accordance with § 7–137 of the Education Article;
(3)
the Department of Transportation and the Maryland Transportation Authority, without the approval of any of the other primary procurement units, may engage in the procurement of:
(i)
construction that is related to transportation, as provided in the Transportation Article;
(ii)
construction related services that are related to transportation, as provided in the Transportation Article;
(iii)
architectural or engineering services that are related to transportation, under Title 13, Subtitle 3 of this article;
(iv)
supplies for transportation–related activities, including information technology supplies that are subject to Title 3.5 of this article, but excluding:
(1)
supplies funded by the proceeds from State general obligation bonds; and
(2)
insurance;
(v)
services for transportation–related activities, including information technology services that are subject to Title 3.5 of this article, but excluding banking and financial services under the authority of the State Treasurer under item (1) of this subsection;
(vi)
rolling stock and other property peculiar to the operation of a transit system, as provided in § 7–403 of the Transportation Article;
(vii)
supplies for aeronautics related activities, including motor vehicles and information processing supplies, but excluding:
(1)
supplies funded by the proceeds from State general obligation bonds; and
(2)
insurance; and
(viii)
services for aeronautics related activities, including information processing services, but excluding banking and financial services under the authority of the State Treasurer under item (1) of this subsection; and
(4)
the Maryland Port Commission, without the approval of any of the other primary procurement units, may engage in the procurement of:
(i)
supplies for port related activities, including motor vehicles and information processing supplies, but excluding:
(1)
supplies funded by the proceeds from State general obligation bonds; and
(2)
insurance;
(ii)
services for port related activities, including information processing services, but excluding banking and financial services under the authority of the State Treasurer under item (1) of this subsection;
(iii)
construction and construction related services for a port facility as defined in § 6–101(e) of the Transportation Article;
(iv)
port related architectural and engineering services under Title 13, Subtitle 3 of this article; and
(v)
leases of real property for port related activities unless the lease payments are from the General Fund of the State.
Md. Code Ann., State Fin. & Proc. § 12-108 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 1. State Procurement Organization

§ 12–108Copy Citation

(a)
This section does not apply to capital expenditures by the Department of Transportation or the Maryland Transportation Authority, in connection with State roads, bridges, or highways, as provided in § 12-202 of this title.
(b)
Subject to the approval of the Board and under the coordination of the Governor, each of the primary procurement units shall:
(1)
adopt regulations to carry out this Division II;
(2)
send to the Board a copy of each proposed regulation under item (1) of this subsection; and
(3)
send to the Board a copy of each internal operating procedure that the primary procurement unit adopts.
Md. Code Ann., State Fin. & Proc. § 12-109 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 1. State Procurement Organization

§ 12–109Copy Citation

If authorized by the principal executive or legislative authority of the local government in accordance with local ordinance, a local health department may use either the State procurement system or the procurement system of the county in which the health department is located.
Md. Code Ann., State Fin. & Proc. § 12-111 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 1. State Procurement Organization

§ 12–111Copy Citation

(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Public employer” means:
(i)
a unit;
(ii)
a county;
(iii)
a municipality;
(iv)
a county board of education; or
(v)
a special taxing district.
(3)
(i)
Except as provided in subparagraph (ii) of this paragraph, “services” has the meaning stated in § 11–101 of this article.
(ii)
“Services” includes:
(1)
construction–related services;
(2)
architectural services;
(3)
engineering services; and
(4)
energy performance contract services.
(b)
This section applies to a procurement contract with an estimated value of $2,000,000 or more.
(c)
In response to a solicitation for a procurement contract issued by a public employer, a bidder shall disclose to the public employer the following:
(1)
whether the bidder or any contractor that the bidder will subcontract with to perform the contract has plans, at the time the bid is submitted, to perform any services required under the contract outside the United States; and
(2)
if services required under the contract are anticipated to be performed outside the United States:
(i)
where the services will be performed; and
(ii)
the reasons why it is necessary or advantageous to perform the services outside the United States.
(d)
(1)
Except as provided in paragraph (2) of this subsection, a public employer may not knowingly contract for the following services unless the services are to be provided in the United States:
(i)
architectural services;
(ii)
construction services;
(iii)
engineering services; or
(iv)
energy performance contract services.
(2)
A public employer may contract for services listed in paragraph (1) of this subsection that are provided outside the United States, if:
(i)
the services are not available in the United States;
(ii)
the price of the services in the United States exceeds by an unreasonable amount the price of services provided outside the United States; or
(iii)
the quality of the services in the United States is substantially less than the quality of comparably priced services provided outside the United States.
(3)
The Board shall adopt regulations defining the following terms for the purposes of this subsection:
(i)
“unreasonable amount”; and
(ii)
“substantially less”.

Subtitle 2. Supervision of Capital Expenditures and Real Property Leases

Md. Code Ann., State Fin. & Proc. § 12-201 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 2. Supervision of Capital Expenditures and Real Property Leases

§ 12–201Copy Citation

This subtitle is broadly applicable to all procurements by the State.
Md. Code Ann., State Fin. & Proc. § 12-202 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 2. Supervision of Capital Expenditures and Real Property Leases

§ 12–202Copy Citation

(a)
This section does not apply to capital expenditures:
(1)
for public school construction under Title 5, Subtitle 3 of the Education Article; or
(2)
by the Department of Transportation or the Maryland Transportation Authority, in connection with State roads, bridges, or highways.
(b)
Before execution, a contract for a capital expenditure other than in connection with a State correctional facility, St. Mary’s College of Maryland, Morgan State University, or the University System of Maryland shall be:
(1)
reviewed by the Secretary of General Services; and
(2)
except as provided in § 12-203 of this subtitle and § 13-108 of this article, after that review, approved by the Board.
(c)
Before execution, a contract for a capital expenditure in connection with a State correctional facility shall be:
(1)
reviewed by the Secretary of Public Safety and Correctional Services; and
(2)
except as provided in § 12-203 of this subtitle, after that review, approved by the Board.
(d)
Before execution, a contract for a capital expenditure in connection with the University System of Maryland shall be:
(1)
subject to the provisions of Title 4, Subtitle 4 of this article;
(2)
approved by the Board of Regents of the University System of Maryland; and
(3)
approved by the Board of Public Works.
(e)
Before execution, a contract for a capital expenditure in connection with St. Mary’s College of Maryland shall be:
(1)
subject to the provisions of Title 4, Subtitle 4 of this article;
(2)
approved by the Board of Trustees of St. Mary’s College of Maryland; and
(3)
approved by the Board of Public Works.
(f)
Before execution, a contract for a capital expenditure in connection with Morgan State University shall be:
(1)
subject to the provisions of Title 4, Subtitle 4 of this article;
(2)
approved by the Board of Regents of Morgan State University; and
(3)
approved by the Board of Public Works.
(g)
The Board shall supervise the expenditure of any money that the General Assembly appropriates for:
(1)
buildings;
(2)
equipment;
(3)
new construction; or
(4)
any other capital expenditure.
Md. Code Ann., State Fin. & Proc. § 12-203 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 2. Supervision of Capital Expenditures and Real Property Leases

§ 12–203Copy Citation

(a)
(1)
The Board may adopt regulations that allow a unit of the State government to enter into a contract or make a change order related to a capital project without approval.
(2)
These regulations shall:
(i)
comply with this section; and
(ii)
be subject to the approval of the Joint Committee on Administrative, Executive, and Legislative Review.
(b)
(1)
Regulations adopted under this section shall:
(i)
establish an expenditure or use classification to determine which contracts or change orders may be made without Board approval;
(ii)
set an amount for each classification and require a unit of the State government to obtain approval of the Board if the annual dollar value of a contract and its change orders exceeds that amount; and
(iii)
require a unit of the State government to establish a reporting system approved by the Board to inform the Board about contracts or change orders entered into without Board approval.
(2)
The amount established by the Board under paragraph (1)(ii) of this subsection shall be an amount that:
(i)
frees the Board from direct review of relatively insignificant items; but
(ii)
does not impair the strong public policy favoring direct review by the Board for items that have a substantial fiscal impact.
Md. Code Ann., State Fin. & Proc. § 12-204 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 2. Supervision of Capital Expenditures and Real Property Leases

§ 12–204Copy Citation

(a)
This section does not apply to a lease entered into on or before May 31, 1967, unless the lease is renewed after that date.
(b)
(1)
Except as otherwise provided in this section and § 13–108 of this article, before a unit executes or renews a lease of land, buildings, or office space, the Board shall approve the lease or lease renewal.
(2)
After review by the Secretary of General Services, the Board may designate the location of any unit.
(c)
(1)
Subject to paragraph (2) of this subsection, the Board may adopt regulations, in accordance with Title 10, Subtitle 1 of the State Government Article, that allow a unit to execute or renew a lease without Board approval.
(2)
These regulations are subject to the approval of:
(i)
the General Assembly; or
(ii)
while the General Assembly is not in session, the Legislative Policy Committee.
(3)
Regulations adopted under this section shall:
(i)
establish an expenditure or use classification to determine which leases or lease renewals may be entered into without Board approval;
(ii)
set an amount for each classification and require a unit to obtain approval if a lease or lease renewal exceeds that amount; and
(iii)
require a unit to establish a reporting system approved by the Board to inform the Board about leases or lease renewals entered into without Board approval.
(d)
(1)
Subject to paragraph (2) of this subsection, the Board may not approve a lease that:
(i)
transfers ownership of the property to the lessee on or before the termination of the lease;
(ii)
allows the lessee to purchase the property below fair market value or for a fixed amount;
(iii)
is for a term that is 75% or more of the estimated useful economic life of the property; or
(iv)
has payments with a present value that is 90% or more of the fair market value of the property.
(2)
The Board may approve a lease described in paragraph (1) of this subsection if:
(i)
the Capital Debt Affordability Committee has certified to the Governor and the General Assembly that the total amount of new State debt to be incurred by the lease may prudently be authorized; or
(ii)
the General Assembly has approved the lease in the budget for the requesting unit.
Md. Code Ann., State Fin. & Proc. § 12-205 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 2. Supervision of Capital Expenditures and Real Property Leases

§ 12–205Copy Citation

(a)
This section does not apply to a lease entered into on or before May 31, 1967, unless the lease is renewed after that date.
(b)
An appropriation may not be obligated or spent for the lease of a building or part of a building to be occupied by the State or a unit of the State government for a State purpose at an annual rent that exceeds 15% of the fair market value of the leased premises on the date of the lease.

Subtitle 3. Energy Performance Contracts

Md. Code Ann., State Fin. & Proc. § 12-301 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 3. Energy Performance Contracts

§ 12–301Copy Citation

(a)
(1)
(i)
A unit shall consult with the Department of General Services during the development phase of a project that will require an energy performance contract.
(ii)
Before issuing a request for proposals for an energy performance contract, a unit shall consult with the Department of General Services and the Chief Procurement Officer.
(2)
The Department of General Services shall review the proposed request to ensure that it meets with the State energy standards and preserves the State’s flexibility to investigate and use economically justifiable new technologies.
(3)
A unit pursuing an energy contract must receive final approval from the Department of General Services before submitting the proposed contract to the Board of Public Works for approval.
(b)
(1)
Notwithstanding any other provision of law and subject to the approval and control of the Board of Public Works and the Chief Procurement Officer, a unit of State government is authorized to enter into energy performance contracts of up to 30 years’ duration.
(2)
The Treasurer may enter into a capital lease to finance energy performance contracts as provided in Title 8, Subtitle 4 of this article.
(3)
The payments and the total contract amount due under an energy performance contract or, in the case of a capital lease used to finance energy performance contracts, the capital lease payments may not exceed the actual energy savings realized as a result of the contract’s performance.
(4)
(i)
Before approval of an energy performance contract, the Board:
(1)
shall ensure that the projected annual energy savings attributable to the project will exceed the projected annual capital lease payments or payments to the contractor under the contract; and
(2)
based on the review of the Department of General Services, shall determine whether the proposed energy technology is appropriate for the time period provided in the contract.
(ii)
The Board may:
(1)
authorize the use of incentive contracts, including contracts that guarantee energy savings performance; and
(2)
require prospective contractors to furnish appropriate guarantees to ensure that projected savings are realized.
(iii)
Any guarantees required under subparagraph (ii) of this paragraph may include a requirement that the contractor furnish a bond or other assurance to the State in an appropriate amount to guarantee projected performance and that the bond or other assurance be structured so that a failure to meet guaranteed performance savings will forfeit a portion of the bond or other assurance to match the shortfall in energy savings.
Md. Code Ann., State Fin. & Proc. § 12-302 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 3. Energy Performance Contracts

§ 12–302Copy Citation

(a)
The Department of General Services shall be responsible for monitoring the status of active energy performance contracts and reporting that status to the Board annually.
(b)
A unit that has entered into an energy performance contract shall submit to the Department of General Services for review any required annual measurement and verification reports.
Md. Code Ann., State Fin. & Proc. § 12-303 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 3. Energy Performance Contracts

§ 12–303Copy Citation

The Board may modify or waive any authorization, source selection, solicitation, or contract requirement under this Division II for an energy performance contract or a class of energy performance contracts to the extent that:
(1)
the purposes stated in § 11-201(a) of this article are fostered; and
(2)
the circumstances of energy performance contracting require the modification or waiver.

Subtitle 4. Policies and Procedures for Exempt Units

Md. Code Ann., State Fin. & Proc. § 12-401 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 4. Policies and Procedures for Exempt Units

§ 12–401Copy Citation

(a)
(1)
Except as provided in paragraph (2) of this subsection, each unit with an exemption from any provision of Division II of this article shall have written policies and procedures for the exempted unit’s procurements.
(2)
This section does not apply to:
(i)
§ 11–203(a)(1)(iii) of this article;
(ii)
§ 11–203(a)(2) of this article;
(iii)
§ 11–203(e) of this article; or
(iv)
§ 11–203(g) of this article.
(b)
Written policies and procedures shall include:
(1)
the types of procurement exempted from Division II of this article;
(2)
the methods of procurement to be used for procurements provided under item (1) of this subsection;
(3)
the advertising requirements for each type of procurement provided under item (1) of this subsection;
(4)
procurement goals, including minority business enterprise participation, for each type of procurement provided under item (1) of this subsection; and
(5)
the approval process for each type of procurement provided under item (1) of this subsection.
(c)
(1)
Except as provided in paragraph (2) of this subsection, at the beginning of each fiscal year, each unit shall submit written policies and procedures to the Board for review as required by subsections (a) and (b) of this section.
(2)
Units that are governed by their own board, commission, council, or authority shall submit their policies and procedures as required by subsections (a) and (b) of this section to their board, commission, council, or authority for approval.

Subtitle 5. Disclosure Requirements Regarding Involvement in Deportations

Md. Code Ann., State Fin. & Proc. § 12-501 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 5. Disclosure Requirements Regarding Involvement in Deportations

§ 12–501Copy Citation

(a)
In this subtitle the following words have the meanings indicated.
(b)
“Direct involvement in the deportation of victims” means ownership or operation of the trains on which individuals were transported to extermination camps, death camps, or any facility used to transition individuals to extermination camps or death camps, during the period beginning on September 1, 1939, and ending on September 2, 1945.
(c)
“Entity” means:
(1)
a corporation, affiliate, or other similar organization or a successor in interest of the corporation, affiliate, or similar organization that controls, or is controlled or owned or partially owned by or under common control with, a corporation that had direct involvement in the deportation of victims; or
(2)
a member of a partnership or a consortium that includes an entity that certifies that it had direct involvement in the deportation of victims.
(d)
“MARC” means the Maryland Area Regional Commuter.
(e)
“Process of assembling the records” means to:
(1)
organize, digitize, and make records available to the public in an Internet accessible, electronic format that is searchable and analyzable; and
(2)
prepare to submit the information described in § 12–507 of this subtitle to the State Archivist.
(f)
(1)
“Property” means any personal belongings owned or controlled by victims.
(2)
“Property” includes:
(i)
jewelry;
(ii)
books;
(iii)
artifacts;
(iv)
precious metals; and
(v)
currency.
(g)
(1)
“Records” means material relating to the deportation of victims.
(2)
“Records” includes:
(i)
documents;
(ii)
correspondence;
(iii)
memoranda;
(iv)
receipts;
(v)
invoices;
(vi)
presentations;
(vii)
audits; and
(viii)
any other materials related to items (i) through (vii) of this paragraph.
(h)
“Victim” means an individual who was on an entity’s train for the purpose of being transported to an extermination camp, death camp, or a facility used to transition individuals to extermination camps or death camps during the period beginning on September 1, 1939 and ending on September 2, 1945.
Md. Code Ann., State Fin. & Proc. § 12-502 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 5. Disclosure Requirements Regarding Involvement in Deportations

§ 12–502Copy Citation

For the purposes of this subtitle:
(1)
two or more entities shall be considered as the same entity if:
(i)
one entity is a wholly owned subsidiary of the other; or
(ii)
one entity owns or directly or indirectly controls more than 50% of the voting securities of the other entity, regardless of whether the equity interest in that other entity is owned by a foreign government; and
(2)
if an equity interest in an entity is or was owned by a foreign government, that equity interest shall be attributed to the entity.
Md. Code Ann., State Fin. & Proc. § 12-503 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 5. Disclosure Requirements Regarding Involvement in Deportations

§ 12–503Copy Citation

This subtitle applies to an entity that:
(1)
had direct involvement in the deportation of victims; and
(2)
submits a bid or offer to a unit of State or local government on a procurement contract to provide MARC service that is funded in whole or in part with public funds.
Md. Code Ann., State Fin. & Proc. § 12-504 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 5. Disclosure Requirements Regarding Involvement in Deportations

§ 12–504Copy Citation

An entity may not be considered a responsible bidder or offeror for a procurement contract to provide MARC service unless the entity complies with the requirements of §§ 12–505 through 12–507 of this subtitle.
Md. Code Ann., State Fin. & Proc. § 12-505 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 5. Disclosure Requirements Regarding Involvement in Deportations

§ 12–505Copy Citation

(a)
In conjunction with the submission of a bid or offer on a procurement contract to a unit of State or local government to provide MARC service, an entity shall submit to the unit:
(1)
a statement that the entity had direct involvement in the deportation of victims; and
(2)
an estimated date for completing the process of assembling the records and providing information to the State Archivist in accordance with §§ 12–506 and 12–507 of this subtitle.
(b)
The entity shall notify the unit of any change in the estimated date that was submitted to the unit in accordance with subsection (a) of this section.
Md. Code Ann., State Fin. & Proc. § 12-506 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 5. Disclosure Requirements Regarding Involvement in Deportations

§ 12–506Copy Citation

(a)
Before a unit of State or local government may award a procurement contract to provide MARC service to an entity subject to this subtitle, the entity shall comply with the provisions of this section for the process of assembling the records related to the deportation of victims.
(b)
(1)
An entity shall contract with an archivist and a historian to conduct an initial analysis of the records.
(2)
The archivist and historian that conduct the initial analysis shall:
(i)
be approved by the State Archivist;
(ii)
be independent of the entity; and
(iii)
conduct the analysis in accordance with the standards of the Society of American Archivists and the Council of State Archivists.
(3)
The initial analysis shall include:
(i)
an inspection of each location in which the entity maintains records that may be related to the deportation of victims; and
(ii)
a report submitted to the State Archivist.
(4)
The initial report submitted to the State Archivist shall include:
(i)
a list of each location inspected and an assessment of whether the location maintains any records;
(ii)
an outline and assessment of the quality of the records;
(iii)
a timeline for the process to assemble the records; and
(iv)
an estimated cost to assemble the records.
(c)
(1)
After the initial analysis is concluded and the State Archivist has approved the initial report in accordance with § 12–508(a)(2)(i) of this subtitle, the entity shall contract with an archivist and a historian to ensure that the process of assembling the records is completed in a manner consistent with:
(i)
the initial report; and
(ii)
the standards of the Society of American Archivists and the Council of State Archivists.
(2)
The archivist and historian contracted with to carry out paragraph (1) of this subsection:
(i)
shall be approved by the State Archivist; and
(ii)
may be the archivist and historian that conducted the initial analysis or another archivist and historian approved by the State Archivist.
(d)
After the process of assembling the records is complete, the entity shall provide the information required under § 12–507 of this subtitle to the State Archivist.
Md. Code Ann., State Fin. & Proc. § 12-507 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 5. Disclosure Requirements Regarding Involvement in Deportations

§ 12–507Copy Citation

Before a unit of State or local government may award a procurement contract to provide MARC service to an entity subject to this subtitle, the entity shall provide the State Archivist with the following information as it relates to the deportation of victims:
(1)
a written statement providing:
(i)
whether the entity possesses, has custody of, or controls records relating to the the deportation of victims;
(ii)
each location where the records are maintained; and
(iii)
the contents and addresses of each archive or other facility where the entity maintains records;
(2)
a detailed index of the records, including:
(i)
the location of the records and a list of any money received for each deportation, delineated by individual convoys and persons; and
(ii)
an accounting of each piece of property taken or confiscated from each victim;
(3)
if the entity no longer has in its custody or control any or all of the property taken or confiscated from each victim, a written description of:
(i)
the time and manner in which the entity disposed of or converted the property;
(ii)
any property currently owned or operated by the entity that was exchanged for the expropriated property;
(iii)
any expropriated property currently owned by the entity or any other property derived from the expropriated property; and
(iv)
any other derivative or traceable property that remains in the entity’s possession, custody, or control as a result of its deportations activity; and
(4)
a written statement concerning whether the entity has provided restitution or reparations to all identifiable victims of the deportations and, if so stated, a detailed description on how the restitution or reparations apply specifically to the deportation of each victim.
Md. Code Ann., State Fin. & Proc. § 12-508 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 5. Disclosure Requirements Regarding Involvement in Deportations

§ 12–508Copy Citation

(a)
The State Archivist shall:
(1)
approve an archivist and historian to conduct the initial analysis required under § 12–506(b) of this subtitle;
(2)
within 14 days after receiving the initial report submitted in accordance with § 12–506(b) of this subtitle:
(i)
review the report and determine whether, in the professional opinion of the State Archivist, the report is consistent with the standards of the Society of American Archivists and the Council of State Archivists; and
(ii)
approve an archivist and historian that will ensure that the process of assembling the records is completed in a manner consistent with:
(1)
the initial report; and
(2)
the standards of the Society of American Archivists and the Council of State Archivists;
(3)
as needed, provide guidance for and oversight of the process of assembling the records;
(4)
after receiving from an entity the information required under § 12–507 of this subtitle, determine whether, in the professional opinion of the State Archivist:
(i)
the process of assembling the records is complete;
(ii)
the process of assembling the records was completed in a manner consistent with:
(1)
the initial report submitted in accordance with § 12–506(b) of this subtitle; and
(2)
the standards of the Society of American Archivists and the Council of State Archivists; and
(iii)
the information submitted under § 12–507 of this subtitle is as complete and accurate as possible; and
(5)
provide written notice of the determination made under item (4) of this subsection to:
(i)
the entity; and
(ii)
if the State Archivist determines that the entity met the requirements set forth in item (4)(i), (ii), and (iii) of this subsection, to the unit of State or local government awarding the procurement contract to provide MARC service.
(b)
The State Archivist may use a designee to carry out any provision of this section.
Md. Code Ann., State Fin. & Proc. § 12-509 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 5. Disclosure Requirements Regarding Involvement in Deportations

§ 12–509Copy Citation

(a)
At least 30 days before awarding a procurement contract on which an entity subject to this subtitle submitted a bid or offer, a unit of State or local government shall publish notice of its intent to award the procurement contract.
(b)
A unit of State or local government may not award a procurement contract to provide MARC service to an entity that does not comply with §§ 12–505 through 12–507 of this subtitle.
(c)
A unit of State or local government may award a procurement contract to provide MARC service to an entity only after the unit receives the notice from the State Archivist in accordance with § 12–508(a)(5) of this subtitle.
(d)
Notwithstanding the requirements of this subtitle, a unit of State or local government may award a procurement contract to provide MARC service to a bidder or offeror that is not an entity subject to the requirements of this subtitle.
Md. Code Ann., State Fin. & Proc. § 12-510 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 5. Disclosure Requirements Regarding Involvement in Deportations

§ 12–510Copy Citation

An entity awarded a procurement contract to provide MARC service in accordance with § 12–509(c) of this subtitle is considered to have satisfied the requirements of §§ 12–505 through 12–507 of this subtitle for all future procurement contracts to provide MARC service.
Md. Code Ann., State Fin. & Proc. § 12-511 (2026)
Title 12. Organization and Supervision of State Procurement
Subtitle 5. Disclosure Requirements Regarding Involvement in Deportations

§ 12–511Copy Citation

The entity or any other bidder or offeror for a procurement contract to provide MARC service may not submit a protest under § 15–217 of this article relating to the requirements of this subtitle.