<section article="gsf" article_name="State Finance and Procurement" number="13-101" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="1" subtitle_name="Methods of Source Selection"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Designated procurement unit” means:</text> <level label="1"> <text>the Department of General Services;</text> </level> <level label="2"> <text>the Department of Transportation; or</text> </level> <level label="3"> <text>the Department of Information Technology, only with respect to an information technology master contract executed before July 1, 2022, until the earlier of:</text> <level label="i"> <text>the expiration date of all information technology master contracts; or</text> </level> <level label="ii"> <text>June 30, 2027.</text> </level> </level> </level> <level label="c"> <text>“eMaryland Marketplace” or “eMaryland Marketplace Advantage” means the Internet–based procurement system managed by the Department of General Services.</text> </level> <level label="d"> <text>“Evaluated bid price” means the price of a bid after adjustment in accordance with objective measurable criteria.</text> </level> <level label="e"> <text>“Master contracting” means a streamlined procurement method that provides for the qualification of bidders and offerors for the procurement of services, supplies, or commodities.</text> </level> <level label="f"> <level label="1"> <text>“Objective measurable criteria” means standards that enable the State to compare the economy, effectiveness, or value of the subject of the bids.</text> </level> <level label="2"> <text>“Objective measurable criteria” includes standards of reliability, operational costs, maintainability, useful life, and residual value.</text> </level> </level> <level label="g"> <text>“Person” includes, unless the context requires otherwise:</text> <level label="1"> <text>the State;</text> </level> <level label="2"> <text>a county, a municipal corporation, or any other political subdivision; and</text> </level> <level label="3"> <text>any unit of the State government or a political subdivision.</text> </level> </level> <level label="h"> <text>“Task order” means a procurement process in which only those vendors with master contracts may compete to provide the services, supplies, or commodities under the procurement.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-102" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="1" subtitle_name="Methods of Source Selection"> <level label="a"> <text>The following procurement methods are authorized at the procurement officer’s discretion, where applicable:</text> <level label="1"> <text>competitive sealed bids under § 13–103 of this subtitle;</text> </level> <level label="2"> <text>competitive sealed proposals under § 13–104 or § 13–105 of this subtitle;</text> </level> <level label="3"> <text>noncompetitive negotiation under § 13–106 of this subtitle;</text> </level> <level label="4"> <text>sole source procurement under § 13–107 of this subtitle;</text> </level> <level label="5"> <text>emergency or expedited procurement under § 13–108 of this subtitle;</text> </level> <level label="6"> <text>small procurement under § 13–109 of this subtitle;</text> </level> <level label="7"> <text>an intergovernmental cooperative purchasing agreement under § 13–110 of this subtitle;</text> </level> <level label="8"> <text>auction bids under § 13–111 of this subtitle;</text> </level> <level label="9"> <text>architectural, engineering, and land surveying services qualification based selection under § 13–112 of this subtitle;</text> </level> <level label="10"> <text>master contracting under § 13–113 of this subtitle;</text> </level> <level label="11"> <text>legislative fast–track procurements under § 13–117 of this subtitle; or</text> </level> <level label="12"> <text>competitive proof of concept procurements under § 13–116 of this subtitle.</text> </level> </level> <level label="b"> <level label="1"> <text>In awarding a procurement contract for human, social, cultural, or educational service, the preferred method is by competitive sealed proposals under § 13–104 of this subtitle.</text> </level> <level label="2"> <text>In awarding a procurement contract for a lease of real property, the preferred method is by competitive sealed proposals under § 13–105 of this subtitle.</text> </level> <level label="3"> <text>Procurement under an intergovernmental cooperative purchasing agreement is appropriate in situations where the State is expected to achieve a better price as the result of economies of scale or to otherwise benefit by purchasing in cooperation with another governmental entity.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-102.1" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="1" subtitle_name="Methods of Source Selection"> <level label="a"> <text>A unit may not charge a fee to access eMaryland Marketplace.</text> </level> <level label="b"> <level label="1"> <text>Subject to approval by the Board of Public Works, the Chief Procurement Officer may establish fees for the use of eMaryland Marketplace by an entity that publishes a notice of a procurement, conducts a procurement, or publishes a notice of award.</text> </level> <level label="2"> <text>The Chief Procurement Officer may not charge a unit, as defined in § 11–101 of this article, a fee under this subsection.</text> </level> </level> <level label="c"> <text>Subject to approval by the Board of Public Works, the Chief Procurement Officer, in consultation with the Department of Budget and Management, may establish fees for:</text> <level label="1"> <text>training;</text> </level> <level label="2"> <text>strategic sourcing; and</text> </level> <level label="3"> <text>administrative costs.</text> </level> </level> <level label="d"> <level label="1"> <text>There is an Operations Revenue Fund in the Department of General Services.</text> </level> <level label="2"> <text>The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this article.</text> </level> <level label="3"> <text>The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.</text> </level> <level label="4"> <text>The Fund consists of any fees imposed and collected under subsection (b)(1) or (c) of this section and § 13–226(c) of this title.</text> </level> <level label="5"> <text>The Fund shall be used by the Department of General Services to cover the actual documented direct and indirect operating expenses of the Office of State Procurement.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-103" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="1" subtitle_name="Methods of Source Selection"> <level label="a"> <level label="1"> <text>Whenever procurement is based on competitive sealed bids, a procurement officer shall seek bids by issuing an invitation for bids.</text> </level> <level label="2"> <text>Subject to subsection (b) of this section, an invitation for bids shall include:</text> <level label="i"> <text>the specifications of the procurement contract, including the expected degree of minority business enterprise participation, as provided in § 14–303(b) of this article;</text> </level> <level label="ii"> <text>a summary of the factors used to determine the expected degree of minority business enterprise participation for the procurement contract, including subcontracting opportunities identified for the project, any applicable North American Industry Classification System codes linked to the subcontracting opportunities, and the number of certified minority business enterprises in those industries;</text> </level> <level label="iii"> <text>whether the procurement contract will be awarded based on the lowest bid price, the lowest evaluated bid price or, if the procurement is subject to § 11–202(3) of this article, the bid most favorable to the State;</text> </level> <level label="iv"> <text>if the procurement contract will be based on evaluated bid price, the objective measurable criteria by which the lowest evaluated bid price will be determined; and</text> </level> <level label="v"> <text>if the head of the unit or the head of the unit’s designee has so designated, the small business preference.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>Whenever a procurement officer determines that an initial preparation of specifications for price bids is impracticable, the invitation for bids may:</text> <level label="i"> <text>include a request for unpriced technical offers or samples; and</text> </level> <level label="ii"> <text>direct bidders to submit price bids:</text> <level label="1"> <text>with the unpriced technical offers or samples; or</text> </level> <level label="2"> <text>after the unit evaluates the technical offers or samples and finds that they are acceptable under the criteria set forth in the invitation for bids.</text> </level> </level> </level> <level label="2"> <text>A unit shall consider the prices submitted by bidders whose technical offers or samples have been found acceptable.</text> </level> <level label="3"> <text>Price bids may not be opened until after the unit has completed evaluation of the technical offers or samples.</text> </level> <level label="4"> <level label="i"> <text>A price bid may not be opened at any time if the bid is submitted by a bidder whose technical offer or sample has been evaluated as unacceptable to the unit.</text> </level> <level label="ii"> <text>A procurement officer shall return an unopened price bid submitted by a bidder whose technical offer or sample has been evaluated as unacceptable.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>A unit shall give public notice of an invitation for bids before bid</text> <text>opening in accordance with this subsection.</text> </level> <level label="2"> <text>A unit shall give reasonable notice that shall be at least 10 days before bid opening.</text> </level> <level label="3"> <text>The unit shall publish notice in eMaryland Marketplace at least 20 days before bid opening if:</text> <level label="i"> <text>the procurement officer reasonably expects bid prices to exceed the small procurement amount specified in § 13–109 of this subtitle or a lower amount set by the Board by regulation in accordance with Title 10, Subtitle 1 of the State Government Article; and</text> </level> <level label="ii"> <text>at least part of the procurement contract is to be performed in this State or the District of Columbia.</text> </level> </level> <level label="4"> <text>In addition to any notice required under this subsection, a unit may publish notice of an invitation for bids:</text> <level label="i"> <text>on a bid board or eMaryland Marketplace; or</text> </level> <level label="ii"> <text>in a newspaper, periodical, or trade journal.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>A procurement officer shall:</text> <level label="i"> <text>open bids in public at the time and place designated in the invitation for bids; and</text> </level> <level label="ii"> <text>announce, record, and post:</text> <level label="1"> <text>the name of each bidder; and</text> </level> <level label="2"> <text>the amount of each bid.</text> </level> </level> </level> <level label="2"> <text>Except as provided in paragraph (3) of this subsection, a bid is irrevocable, after bid opening, for the period specified in the invitation for bids.</text> </level> <level label="3"> <text>A procurement officer may allow a bidder to correct or withdraw a bid if correction or withdrawal is:</text> <level label="i"> <text>allowed under regulations adopted under this Division II; and</text> </level> <level label="ii"> <text>approved in writing by the Office of the Attorney General.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>After obtaining any approval required by law, the procurement officer shall award the procurement contract to the responsible bidder who submits the responsive bid that:</text> <level label="i"> <text>is the lowest bid price;</text> </level> <level label="ii"> <text>if the invitation for bids so provides, is the lowest evaluated bid price; or</text> </level> <level label="iii"> <text>for procurement subject to § 11–202(3) of this article, is the bid most favorable to the State.</text> </level> </level> <level label="2"> <text>If, after competitive sealed bids have been opened, a procurement officer determines that only 1 responsible bidder has submitted a responsive bid, the unit may negotiate the procurement contract with that 1 bidder under the procedure for sole source procurement.</text> </level> <level label="3"> <level label="i"> <text>After competitive sealed bids have been opened, a procurement officer may award a procurement contract on the basis of revised bids if:</text> <level label="1"> <text>all bids are rejected under § 13–206(b) of this title;</text> </level> <level label="2"> <text>all bid prices exceed the funds available for the procurement; or</text> </level> <level label="3"> <text>with the approval of the head of the unit or a designee, the procurement officer determines that all bids are unreasonable as to at least 1 requirement and the delay that would result from issuing a new invitation for bids with revised specifications or quantities would be fiscally disadvantageous or otherwise not in the best interests of the State.</text> </level> </level> <level label="ii"> <text>If there is more than 1 bidder, discussions about revised specifications or quantities shall be conducted with all responsible bidders who submitted responsive bids. The bidders shall be treated fairly and equally with respect to any discussions.</text> </level> <level label="iii"> <text>As promptly as possible, the procurement officer shall:</text> <level label="1"> <text>issue an invitation for revised bids, which shall state whether the award will be made without competitive negotiations; and</text> </level> <level label="2"> <text>require a prompt response to that invitation.</text> </level> </level> <level label="iv"> <text>An invitation for revised bids is not subject to the notice requirements in subsection (c) of this section.</text> </level> <level label="v"> <text>After revised bids have been submitted, negotiations with bidders may not be conducted unless the procurement officer determines that there is a compelling reason to negotiate.</text> </level> <level label="vi"> <text>After revised bids have been opened and any approval required by law has been obtained, the procurement officer shall award the procurement contract to the responsible bidder who submits a responsive bid that:</text> <level label="1"> <text>is the lowest bid price;</text> </level> <level label="2"> <text>if the invitation for revised bids so provides, is the lowest evaluated bid price; or</text> </level> <level label="3"> <text>for procurement subject to § 11–202(3) of this article, is the bid most favorable to the State.</text> </level> </level> </level> <level label="4"> <text>A responsive bid or proposal shall include the criteria specified in subsection (a) of this section.</text> </level> </level> <level label="f"> <text>Not more than 30 days after the execution and approval of a procurement contract in excess of the small procurement amount specified in § 13–109 of this subtitle awarded under this section, or a lower amount set by the Board by regulation in accordance with Title 10, Subtitle 1 of the State Government Article, a unit shall publish notice of the award in eMaryland Marketplace.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-104" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="1" subtitle_name="Methods of Source Selection"> <level label="a"> <text>Competitive sealed proposals is the preferred method for:</text> <level label="1"> <text>human, social, cultural, or educational services; and</text> </level> <level label="2"> <text>security services with an expected value that is greater than $1,000,000.</text> </level> </level> <level label="b"> <level label="1"> <text>Whenever procurement is based on competitive sealed proposals, a procurement officer shall seek proposals by issuing a request for proposals.</text> </level> <level label="2"> <text>A request for proposals shall include a statement of:</text> <level label="i"> <text>the scope of the procurement contract, including the expected degree of minority business enterprise participation, as provided in § 14–303(b) of this article;</text> </level> <level label="ii"> <text>a summary of the factors used to determine the expected degree of minority business enterprise participation for the procurement contract, including subcontracting opportunities identified for the project, any applicable North American Industry Classification System codes linked to the subcontracting opportunities, and the number of certified minority business enterprises in those industries;</text> </level> <level label="iii"> <text>the factors, including price, that will be used in evaluating proposals; and</text> </level> <level label="iv"> <text>the relative importance of each factor.</text> </level> </level> </level> <level label="c"> <text>A unit shall publish a request for proposals in the same manner as required for an invitation for bids.</text> </level> <level label="d"> <level label="1"> <text>After receipt of proposals but before the procurement officer awards the procurement contract, a unit may conduct discussions with an offeror to:</text> <level label="i"> <text>obtain the best price for the State; and</text> </level> <level label="ii"> <text>ensure full understanding of:</text> <level label="1"> <text>the requirements of the State, as set forth in the request for proposals; and</text> </level> <level label="2"> <text>the proposal submitted by the offeror.</text> </level> </level> </level> <level label="2"> <text>If discussions are conducted, the unit:</text> <level label="i"> <text>shall conduct the discussions in accordance with regulations adopted under this Division II;</text> </level> <level label="ii"> <text>shall provide an opportunity to participate to each responsible offeror who submits a proposal that, in the judgment of the procurement officer, is reasonably susceptible of being selected for award;</text> </level> <level label="iii"> <text>shall treat all of those responsible offerors fairly and equally;</text> </level> <level label="iv"> <text>may allow all of those responsible offerors to revise their initial proposals by submitting best and final offers, if discussions indicate that it would be in the best interests of the State to do so;</text> </level> <level label="v"> <text>may conduct more than 1 series of discussions and requests for best and final offers; and</text> </level> <level label="vi"> <text>may not disclose to an offeror any information derived from a proposal of or discussions with a competing offeror.</text> </level> </level> <level label="3"> <level label="i"> <text>Except as provided in subparagraph (ii) of this paragraph, an oral presentation is required when:</text> <level label="1"> <text>the total value of the contract is expected to exceed $2,000,000 for architectural and engineering services;</text> </level> <level label="2"> <text>the total value of the contract is expected to exceed $10,000,000 for construction and construction related services; or</text> </level> <level label="3"> <text>for any other procurement, including information technology and professional services, the total value of the contract is expected to exceed $5,000,000.</text> </level> </level> <level label="ii"> <text>If the procurement officer makes a written determination that oral presentations are unlikely to aid in the evaluation process, oral presentations are not required.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection:</text> <level label="i"> <text>a proposal is irrevocable for the period specified in the request for proposals; and</text> </level> <level label="ii"> <text>a best and final offer is irrevocable for the period specified in the request for best and final offers.</text> </level> </level> <level label="2"> <text>A procurement officer may allow an offeror to correct or withdraw a proposal or best and final offer if correction or withdrawal is:</text> <level label="i"> <text>allowed under regulations adopted under this Division II; and</text> </level> <level label="ii"> <text>approved in writing by the Office of the Attorney General.</text> </level> </level> </level> <level label="f"> <text>After obtaining any approval required by law, the procurement officer shall award the procurement contract to the responsible offeror who submits the proposal or best and final offer determined to be the most advantageous to the State considering the evaluation factors set forth in the request for proposals.</text> </level> <level label="g"> <text>A unit shall publish notice of a contract in excess of the small procurement amount specified in § 13–109 of this subtitle awarded under this section, or a lower amount set by the Board by regulation in accordance with Title 10, Subtitle 1 of the State Government Article in eMaryland Marketplace.</text> </level> <level label="h"> <level label="1"> <text>An unsuccessful offeror may submit a request to the procurement officer for a debriefing of the recommended contract award.</text> </level> <level label="2"> <text>After receiving a request for a debriefing under paragraph (1) of this subsection, the procurement officer shall provide the debriefing:</text> <level label="i"> <text>as soon as is feasible after receiving the request; and</text> </level> <level label="ii"> <text>before the recommended contract award is presented for approval to the head of the unit or the Board.</text> </level> </level> <level label="3"> <text>Except for information reasonably determined by the procurement officer to be confidential, proprietary, or privileged, a debriefing required under paragraph (1) of this subsection shall include all relevant information.</text> </level> <level label="4"> <text>The Office of State Procurement shall establish guidelines and procedures for debriefings, including a deadline for an unsuccessful offeror to submit a request for a debriefing.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-105" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="1" subtitle_name="Methods of Source Selection"> <level label="a"> <text>A request for proposals for a lease of real property shall include:</text> <level label="1"> <text>a work statement that shall be used as a basis for the evaluation of proposals;</text> </level> <level label="2"> <text>a statement of the factors, including price, that will be used in evaluating proposals; and</text> </level> <level label="3"> <text>a statement of the relative importance of each factor.</text> </level> </level> <level label="b"> <text>Subject to the requirements of Title 4, Subtitle 3, Part III of this article, a unit shall publish a request for proposals in the same manner as required for an invitation for bids.</text> </level> <level label="c"> <text>After proposals have been opened, the procurement officer shall reject any proposal that is unacceptable.</text> </level> <level label="d"> <level label="1"> <text>If more than three proposals are submitted, the procurement officer may conduct negotiations with the offerors who, based on a preliminary evaluation in accordance with the evaluation factors, have submitted the three best proposals.</text> </level> <level label="2"> <text>Negotiations are not required if the request for proposals:</text> <level label="i"> <text>notified all offerors that negotiations would not be conducted; and</text> </level> <level label="ii"> <text>requested best and final offers.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>The procurement officer:</text> <level label="i"> <text>may establish a maximum fair market rental rate for each premises offered;</text> </level> <level label="ii"> <text>during negotiations, may not disclose to an offeror any information derived from the proposal of a competing offeror, except price and information directly related to price; and</text> </level> <level label="iii"> <text>after negotiations, may reject a proposal that exceeds the maximum fair market rate.</text> </level> </level> <level label="2"> <text>After receiving best and final offers:</text> <level label="i"> <text>a procurement officer may conduct further negotiations with the successful offeror to obtain for the State the best price, conditions, and services; and</text> </level> <level label="ii"> <text>any modification of a successful offer must be in the best interests of the State.</text> </level> </level> </level> <level label="f"> <text>By direct solicitation and without republication of notice, the procurement officer may acquire other offers if:</text> <level label="1"> <level label="i"> <text>negotiations and best and final offers fail to produce a lease for real property with terms comparable to market rental rates in the boundaries in which the unit must obtain the lease; and</text> </level> <level label="ii"> <text>the final offeror did not accept a lease with terms comparable to the market rental rates; or</text> </level> </level> <level label="2"> <text>the public notice of requests for proposals fails to produce a response or offer of a lease for real property.</text> </level> </level> <level label="g"> <text>If a procurement officer determines that renewal of an existing lease is in the best interests of the State, the procurement officer may negotiate the renewal without soliciting other offers.</text> </level> <level label="h"> <text>After obtaining any approval required by law, the procurement officer shall award the procurement contract to the responsible offeror who submits the proposal or best and final offer determined to be the most advantageous to the State considering:</text> <level label="1"> <text>the price and evaluation factors set forth in the request for proposals; and</text> </level> <level label="2"> <text>the modifications to those factors under the negotiation process.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-106" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="1" subtitle_name="Methods of Source Selection"> <level label="a"> <text>A procurement officer may award a procurement contract on the basis of noncompetitive negotiation if:</text> <level label="1"> <text>the procurement is for human, social, or educational services to be provided directly to individuals with disabilities, individuals who are aged, indigent, disadvantaged, unemployed, mentally or physically ill, or displaced or minors;</text> </level> <level label="2"> <text>the procurement is one of a class for which the Chief Procurement Officer or the Chief Procurement Officer’s designee has approved the use of noncompetitive negotiation; and</text> </level> <level label="3"> <text>with the approval of the head of the unit, the procurement officer determines that:</text> <level label="i"> <text>at least 2 sources are available for the services; but</text> </level> <level label="ii"> <text>the absence of effective competition makes it unreasonable to expect bids or proposals from the available sources.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>Whenever a procurement is based on noncompetitive negotiation, a unit shall publish a request for general expressions of interest.</text> </level> <level label="2"> <text>A request for general expressions of interest shall:</text> <level label="i"> <text>state the general requirement for services;</text> </level> <level label="ii"> <text>request interested service providers to respond in writing with general expressions of interest; and</text> </level> <level label="iii"> <text>be published in the same manner as required for an invitation for bids.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>To satisfy all or part of the requirements of the State as they occur, and without additional advertising, the procurement officer may conduct discussions with any responsible service provider who has submitted an expression of interest.</text> </level> <level label="2"> <text>As far as practicable in the course of administering a program, the unit shall treat fairly and equally with respect to discussions all responsible service providers who have submitted expressions of interest.</text> </level> </level> <level label="d"> <text>After obtaining any approval required by law, the unit may award a procurement contract if the head of the unit determines, on the basis of continuing discussions or past program experience, that an award will serve the best interests of the State.</text> </level> <level label="e"> <text>A unit shall publish in eMaryland Marketplace notice of a procurement contract awarded under this section.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-107" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="1" subtitle_name="Methods of Source Selection"> <level label="a"> <level label="1"> <text>Whenever a procurement officer determines that there is only 1 available source for the subject of a procurement contract, the procurement officer may award the procurement contract without competition to that source.</text> </level> <level label="2"> <text>Before awarding a procurement contract to a sole source, the procurement officer shall obtain:</text> <level label="i"> <text>the approval of the head of the unit; and</text> </level> <level label="ii"> <text>any other approval required by law.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>Subject to paragraphs (2) and (3) of this subsection, with the prior written approval of the Attorney General, a unit may enter into a sole source contract to obtain the services of a contractor in connection with:</text> <level label="i"> <text>threatened or pending litigation;</text> </level> <level label="ii"> <text>appraisal of real property for acquisition by the State; or</text> </level> <level label="iii"> <text>collective bargaining.</text> </level> </level> <level label="2"> <text>This subsection applies only to a procurement in which:</text> <level label="i"> <text>a unit obtains the services of a contractor to represent the State; and</text> </level> <level label="ii"> <text>the nature of the services to be performed requires confidentiality.</text> </level> </level> <level label="3"> <text>This subsection does not apply if the unit reasonably can anticipate a continuing need for a contractor described in paragraph (1)(ii) or (iii) of this subsection.</text> </level> </level> <level label="c"> <text>Not more than 30 days after the execution and approval of a procurement contract awarded under this section, a unit shall publish in eMaryland Marketplace notice of the award.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-108" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="1" subtitle_name="Methods of Source Selection"> <level label="a"> <text>In this section, “emergency” means an occurrence or condition that creates an immediate and serious need for services, materials, or supplies that:</text> <level label="1"> <text>cannot be met through normal procurement methods; and</text> </level> <level label="2"> <text>are required to avoid or mitigate serious damage to public health, safety, or welfare.</text> </level> </level> <level label="b"> <level label="1"> <text>Except as provided in § 11–205 (“Collusion”), § 10–204 (“Approval for designated contracts”), § 13–219 (“Required clauses – Nondiscrimination clause”), Title 16 (“Suspension and Debarment of Contractors”), or Title 17 (“Special Provisions – State and Local Subdivisions”) of this article, with the approval of the head of a unit, its procurement officer may make an emergency procurement by any method that the procurement officer considers most appropriate to avoid or mitigate serious damage to public health, safety, or welfare.</text> </level> <level label="2"> <level label="i"> <text>Except when delaying a procurement by up to 48 hours would likely result in imminent harm, after obtaining the approval of the head of the unit and before making an emergency procurement, the procurement officer shall obtain approval of the use of emergency procurement procedures from the Chief Procurement Officer, or the Chief Procurement Officer’s designee.</text> </level> <level label="ii"> <text>Within 48 hours after receiving a request to use emergency procurement procedures, the Chief Procurement Officer or designee shall approve or disapprove the request.</text> </level> <level label="iii"> <text>If the Chief Procurement Officer or designee does not approve or disapprove the request to use emergency procurement procedures within 48 hours after receiving the request, the request shall be considered to be approved.</text> </level> </level> <level label="3"> <text>The procurement officer shall:</text> <level label="i"> <text>obtain as much competition as possible under the circumstances, including by making reasonable efforts to solicit at least three oral quotes;</text> </level> <level label="ii"> <text>limit the emergency procurement to the procurement of only those items, both in type and quantity, necessary to avoid or to mitigate serious damage to public health, safety, or welfare;</text> </level> <level label="iii"> <text>before awarding an emergency procurement contract to a prospective contractor, evaluate the contractor’s ability to perform the requirements of the contract based on:</text> <level label="1"> <text>the length of time the contractor has been in business;</text> </level> <level label="2"> <text>the contractor’s level of experience providing the types and amounts of supplies, services, maintenance, commodities, construction, or construction–related services required under the contract; and</text> </level> <level label="3"> <text>the contractor’s history of successful procurement contracts with the State and other jurisdictions;</text> </level> </level> <level label="iv"> <text>execute a written contract with the successful contractor which includes the terms of the emergency procurement; and</text> </level> <level label="v"> <text>not more than 15 days after awarding the procurement contract, submit to the Board a written report that gives the justification for use of the emergency procurement procedure.</text> </level> </level> <level label="4"> <level label="i"> <text>This paragraph applies only to an emergency procurement contract with a value of $1,000,000 or more.</text> </level> <level label="ii"> <level label="1"> <text>In advance of or concurrent with the execution of an emergency procurement contract that is subject to this paragraph, a unit may not pay an amount that exceeds $2,000,000, plus 30% of the contract value in excess of $2,000,000.</text> </level> <level label="2"> <text>Unless authorized by the Board, the unit may not make any additional payment under the contract until at least 30 days after the execution of the contract.</text> </level> </level> <level label="iii"> <text>Not later than 7 days after awarding an emergency procurement contract that is subject to this paragraph, a unit shall submit a copy of the contract to the Board.</text> </level> <level label="iv"> <text>The Board may:</text> <level label="1"> <text>review an emergency procurement contract submitted under this paragraph at a regularly scheduled meeting of the Board or at an emergency meeting called for that purpose; and</text> </level> <level label="2"> <text>direct the unit or the appropriate control agency to take any action, including canceling or rescinding the contract, that the Board deems appropriate.</text> </level> </level> </level> <level label="5"> <text>If supplies or commodities procured under an emergency procurement contract are not delivered and used within 1 month after the date the contract is awarded, the unit shall:</text> <level label="i"> <text>prepare a report describing the delivery and use status of supplies and commodities procured under the contract at least once per month until all supplies and commodities have been delivered and used; and</text> </level> <level label="ii"> <text>submit the reports prepared under this paragraph to the Board, the appropriate control agency, and, in accordance with § 2–1257 of the State Government Article, the Senate Budget and Taxation Committee, the Senate Committee on Education, Energy, and the Environment, the House Appropriations Committee, the House Health and Government Operations Committee, and the Joint Audit and Evaluation Committee.</text> </level> </level> <level label="6"> <text>A procurement contract awarded under this subsection shall include provisions addressing the contractor’s ability to perform the requirements of the contract within the emergency time frame.</text> </level> <level label="7"> <text>Notwithstanding subsection (e) of this section, on the day of the execution and approval of a procurement contract awarded under this subsection, or as soon as practicable thereafter, a unit shall publish in eMaryland Marketplace notice of the award.</text> </level> <level label="8"> <level label="i"> <text>This paragraph applies only to the award of a contract or a contract modification made under this subsection that, with prior modifications, exceeds the small procurement amount specified in § 13–109 of this subtitle.</text> </level> <level label="ii"> <text>Within 15 days after awarding a contract or a contract modification, a unit shall submit to the Board and the appropriate control agency a report that includes:</text> <level label="1"> <text>the basis and justification for the emergency procurement including the date the emergency first became known;</text> </level> <level label="2"> <text>a listing of supplies, services, maintenance, commodities, construction, or construction–related services procured;</text> </level> <level label="3"> <text>the names of all persons solicited and a justification if the solicitation was limited to one person;</text> </level> <level label="4"> <text>the prices and times of performance proposed by the persons responding to the solicitation;</text> </level> <level label="5"> <text>the name of and basis for the selection of a particular contractor;</text> </level> <level label="6"> <text>the amount and type of the contract or contract modification;</text> </level> <level label="7"> <text>a listing of any prior or related emergency contracts, including all contract modifications, executed for the purposes of avoiding or mitigating the particular emergency, including the aggregate costs; and</text> </level> <level label="8"> <text>the identification number, if any, of the contract file.</text> </level> </level> <level label="iii"> <text>The Board may adopt regulations to carry out this paragraph.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>Consistent with the requirements of subsection (b)(1) of this section, the State Highway Administration may enter into procurement contracts related to the pretreatment and removal of snow and ice as required or authorized under Title 8 of the Transportation Article.</text> </level> <level label="2"> <level label="i"> <text>Beginning on June 30, 2016, and no later than June 30 of each succeeding year, the State Highway Administration shall submit to the Board a written report on the operation and effectiveness of the procurement contracts entered into under this subsection during the previous year.</text> </level> <level label="ii"> <text>The report shall include:</text> <level label="1"> <text>the number of contracts awarded;</text> </level> <level label="2"> <text>the total dollar value of the contracts awarded; and</text> </level> <level label="3"> <text>the amount of contracting dollars expended with minority business enterprises, certified small businesses, and certified veteran–owned businesses, as defined under Title 14 of this article.</text> </level> </level> </level> <level label="3"> <text>The Board, in consultation with the State Highway Administration, may adopt regulations to carry out the requirements of this subsection.</text> </level> </level> <level label="d"> <level label="1"> <text>Except as provided in § 11–205 (“Collusion”), § 10–204 (“Approval for designated contracts”), § 13–219 (“Required clauses – Nondiscrimination clause”), Title 16 (“Suspension and Debarment of Contractors”), or Title 17 (“Special Provisions – State and Local Subdivisions”) of this article, with the approval of the head of the unit and the Board, a unit’s procurement officer may make a procurement on an expedited basis if the head of the unit and the Board find that:</text> <level label="i"> <text>urgent circumstances require prompt action;</text> </level> <level label="ii"> <text>an expedited procurement best serves the public interest; and</text> </level> <level label="iii"> <text>the need for the expedited procurement outweighs the benefits of making the procurement on the basis of competitive sealed bids or competitive sealed proposals.</text> </level> </level> <level label="2"> <text>The procurement officer shall attempt to obtain as much competition as reasonably possible.</text> </level> </level> <level label="e"> <text>Except as provided in subsection (b)(7) of this section, not more than 30 days after the execution and approval of a procurement contract awarded under this section, a unit shall publish in eMaryland Marketplace notice of the award.</text> </level> <level label="f"> <text>For real property leases procured under this section, the term of the lease shall be for the minimum period of time practicable.</text> </level> <level label="g"> <text>The Board may adopt regulations to carry out this section.</text> </level> <level label="h"> <text>The Special Secretary for the Office of Small, Minority, and Women Business Affairs, in consultation with the Secretary of Transportation and the Attorney General, shall establish guidelines for each unit to consider when determining the appropriate minority business enterprise participation percentage goal and outreach for an emergency procurement contract.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-109" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="1" subtitle_name="Methods of Source Selection"> <level label="a"> <text>In this section, “small procurement” means a procurement for which:</text> <level label="1"> <text>a unit spends $100,000 or less;</text> </level> <level label="2"> <text>a contractor provides services subject to § 11–202(3) of this article for expected annual revenues of $100,000 or less;</text> </level> <level label="3"> <text>the Department of General Services or the Department of Transportation is seeking to award a procurement contract for a construction with a value that is $200,000 or less;</text> </level> <level label="4"> <text>the Department of Natural Resources is seeking to award a procurement contract for capital projects or maintenance with a value that is $200,000 or less; or</text> </level> <level label="5"> <text>for purposes of administering Title 29, Subtitle 1 of the State Personnel and Pensions Article, the State Retirement Agency spends $100,000 or less during a fiscal year for:</text> <level label="i"> <text>expenses related to independent medical evaluations by a physician; and</text> </level> <level label="ii"> <text>any expenses related to testimony by the physician at administrative hearings on behalf of the Agency.</text> </level> </level> </level> <level label="b"> <text>A unit may make small procurements in accordance with the regulations of primary procurement units.</text> </level> <level label="c"> <text>A primary procurement unit may not create a small procurement by artificial division of a procurement.</text> </level> <level label="d"> <text>Any regulation of a primary procurement unit to govern small procurements:</text> <level label="1"> <text>shall provide for a simplified administrative procedure;</text> </level> <level label="2"> <text>shall be consistent with the basic intent of this Division II; and</text> </level> <level label="3"> <text>may not be disadvantageous economically to the State.</text> </level> </level> <level label="e"> <text>At least every 3 years, the Board shall:</text> <level label="1"> <text>review the prevailing costs of labor and materials; and</text> </level> <level label="2"> <text>if warranted by changes in cost, recommend to the General Assembly appropriate adjustments in the ceiling for a small procurement.</text> </level> </level> <level label="f"> <text>If a primary procurement unit determines that a unit does not adhere to the established small procurement regulations, the primary procurement unit may limit or revoke a unit’s ability to conduct small procurements.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-110" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="1" subtitle_name="Methods of Source Selection"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Cooperative entity” means one or more State or local entities that enter into an agreement for the cooperative or joint administration of programs.</text> </level> <level label="3"> <text>“Governmental entity” means:</text> <level label="i"> <text>the federal government or an agency or other instrumentality of the federal government;</text> </level> <level label="ii"> <text>another state or an agency or other instrumentality of another state;</text> </level> <level label="iii"> <text>a bistate or multistate agency;</text> </level> <level label="iv"> <text>a county, municipal corporation, or other political subdivision of the State or of another state, or an agency or other instrumentality of the political subdivision;</text> </level> <level label="v"> <text>a bicounty or multicounty agency;</text> </level> <level label="vi"> <text>a primary procurement unit; or</text> </level> <level label="vii"> <text>an affiliation, alliance, consortium, or group composed solely of governmental entities that is established for purposes of promoting intergovernmental cooperative purchasing.</text> </level> </level> <level label="4"> <text>“Intergovernmental cooperative purchasing agreement” means a contract:</text> <level label="i"> <level label="1"> <text>entered into by at least one governmental entity and a person selected in a manner that is consistent with the purposes set forth under § 11–201 of this article;</text> </level> <level label="2"> <text>that is available for use by the governmental entity entering the contract and at least one additional governmental entity which may, but need not be, an original party to the contract; and</text> </level> <level label="3"> <text>that is intended to promote efficiency and savings that can result from intergovernmental cooperative purchasing; or</text> </level> </level> <level label="ii"> <text>between a primary procurement unit and a person who, at the time the intergovernmental cooperative purchasing agreement is awarded, has a contract with the federal government or an agency or other instrumentality of the federal government, and who agrees to provide the unit with identical prices, terms, and conditions as stipulated in the federal contract.</text> </level> </level> <level label="5"> <level label="i"> <text>“Local entity” means a county, municipal corporation, bicounty or multicounty agency, public authority, special taxing district, or other political subdivision or unit of a political subdivision of this State.</text> </level> <level label="ii"> <text>“Local entity” includes boards of education and library boards that receive funding from the State.</text> </level> </level> <level label="6"> <text>“Nonprofit entity” means�a corporation incorporated in the State, or otherwise qualified to do business in the State that has been determined by the Internal Revenue Service to be exempt from taxation under § 501(c)(3), (4), or (6) of the Internal Revenue Code.</text> </level> <level label="7"> <text>“State entity” means a department, board, commission, agency, or a subunit in the Executive branch of State government.</text> </level> </level> <level label="b"> <level label="1"> <text>Subject to § 12–107 of this article, a primary procurement unit procurement officer shall make a determination, in accordance with paragraph (2) or (3) of this subsection, before the primary procurement unit may:</text> <level label="i"> <text>initially sponsor or participate in an intergovernmental cooperative purchasing agreement;</text> </level> <level label="ii"> <text>renew an intergovernmental cooperative purchasing agreement; or</text> </level> <level label="iii"> <text>modify an intergovernmental cooperative purchasing agreement.</text> </level> </level> <level label="2"> <text>A determination under paragraph (1)(i) of this subsection shall be in writing and include:</text> <level label="i"> <text>sufficient evidence that the intergovernmental cooperative purchasing agreement:</text> <level label="1"> <text>will provide cost benefits to the State; or</text> </level> <level label="2"> <text>will promote administrative efficiencies or promote intergovernmental cooperation; and</text> </level> </level> <level label="ii"> <text>a statement that the intergovernmental cooperative purchasing agreement:</text> <level label="1"> <text>is in the best interest of the State; and</text> </level> <level label="2"> <text>is not intended to evade the purposes of this Division II.</text> </level> </level> </level> <level label="3"> <text>A determination under paragraph (1)(ii) or (iii) of this subsection shall be in writing and include:</text> <level label="i"> <text>sufficient evidence that the intergovernmental cooperative purchasing agreement:</text> <level label="1"> <text>will provide cost benefits to the State; and</text> </level> <level label="2"> <text>will promote administrative efficiencies or promote intergovernmental cooperation; and</text> </level> </level> <level label="ii"> <text>a statement that the intergovernmental cooperative purchasing agreement:</text> <level label="1"> <text>is in the best interest of the State; and</text> </level> <level label="2"> <text>is not intended to evade the purposes of this Division II.</text> </level> </level> </level> <level label="4"> <text>A primary procurement unit shall post each determination required under this subsection on the primary procurement unit’s website.</text> </level> <level label="5"> <text>If a primary procurement unit sponsors an intergovernmental cooperative purchasing agreement:</text> <level label="i"> <text>the contract shall be awarded in the same manner as the contract would be awarded under this Division II if the unit was the sole participant under the contract, including compliance with all notice requirements; and</text> </level> <level label="ii"> <text>all procedures under this Division II, including procedures governing contract claims and protests, shall apply.</text> </level> </level> <level label="6"> <text>If a primary procurement unit participates in an intergovernmental cooperative purchasing agreement, any protest or contract claim involving the agreement shall be handled in accordance with the terms of the agreement.</text> </level> <level label="7"> <text>If a primary procurement unit sponsors or participates in an intergovernmental cooperative purchasing agreement, the intergovernmental cooperative purchasing agreement shall be:</text> <level label="i"> <text>approved by:</text> <level label="1"> <text>the head of the primary procurement unit or the head of the primary procurement unit’s designee; or</text> </level> <level label="2"> <text>the Chief Procurement Officer or the Chief Procurement Officer’s designee; and</text> </level> </level> <level label="ii"> <text>subject to any other approval required by law.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, each procurement contract for supplies or services entered into by a State or local entity shall include a provision that facilitates other State and local entities and nonprofit entities to participate in the contract.</text> </level> <level label="2"> <level label="i"> <text>This subsection does not apply to:</text> <level label="1"> <text>a procurement for a capital facility, improvement, or other unique purchase; or</text> </level> <level label="2"> <text>a procurement with a projected value of less than $100,000.</text> </level> </level> <level label="ii"> <text>This subsection does not apply if the State or local entity determines that including the provision would:</text> <level label="1"> <text>undermine the desired timing or effect of the procurement;</text> </level> <level label="2"> <text>interfere with the State or local entity’s ability to meet:</text> </level> <level label="A"> <text>the minority business enterprise goals provided under § 14–302 of this article or any other minority business enterprise program sponsored by the local entity; or</text> </level> <level label="B"> <text>the Small Business Reserve Program requirements under § 14–502 of this article or any other small business procurement program sponsored by the local entity; or</text> </level> <level label="3"> <text>not be in the best interest of the entity.</text> </level> </level> </level> </level> <level label="d"> <level label="1"> <text>A State or local entity may enter into an agreement for the cooperative or joint administration of programs with one or more other State or local entities.</text> </level> <level label="2"> <text>A cooperative entity established under this section may administer the programs and exercise the powers and duties specifically delegated to the cooperative entity by the agreement that established the cooperative entity.</text> </level> <level label="3"> <text>An agreement described under this subsection does not relieve a State or local entity or other participant of the agreement from any obligation or responsibility imposed on the entity by law.</text> </level> </level> <level label="e"> <text>Notwithstanding any other law, a local entity may participate in an existing State or local contract drafted in accordance with this section, if the governing body of the entity determines that participation would:</text> <level label="1"> <text>provide a cost savings in purchase price or administrative burden; or</text> </level> <level label="2"> <text>further other policy goals including operational and energy–efficiency goals related to the purchase, operation, or maintenance of the supply or service.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-111" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="1" subtitle_name="Methods of Source Selection"> <level label="a"> <text>This section applies to the procurement of supplies and services by a primary procurement unit.</text> </level> <level label="b"> <level label="1"> <text>Whenever the head of a primary procurement unit or designee determines that it is in the best interest of the State for a procurement contract to be based on auction bids, a procurement officer shall seek bids by issuing an invitation for auction bids.</text> </level> <level label="2"> <text>Subject to subsection (c) of this section, an invitation for auction bids shall include:</text> <level label="i"> <text>the specifications of the procurement contract;</text> </level> <level label="ii"> <text>whether the procurement contract will be awarded based on the lowest bid price or the lowest evaluated bid price;</text> </level> <level label="iii"> <text>if the procurement contract will be based on evaluated bid price, the objective measurable criteria by which the lowest evaluated bid price will be determined;</text> </level> <level label="iv"> <text>the small business preference, if designated under § 13–103 of this subtitle; and</text> </level> <level label="v"> <text>the date and time when bidding will commence and the date and time when bidding will end or the event upon which bidding will end.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>In the discretion of the procurement officer, the invitation for auction bids may:</text> <level label="i"> <text>include a request for unpriced technical offers or samples;</text> </level> <level label="ii"> <text>direct bidders to submit price bids after the unit evaluates the technical offers or samples and finds they are acceptable under the criteria set forth in the invitation for auction bids; and</text> </level> <level label="iii"> <text>inform all bidders who submitted technical offers or samples of the identity of each bidder who submitted an acceptable technical offer or sample.</text> </level> </level> <level label="2"> <text>Price bids may not be received until after the unit has completed evaluation of the technical offers or samples.</text> </level> <level label="3"> <text>A price bid may not be received at any time if the bid is submitted by a bidder whose technical offer or sample has been evaluated as unacceptable to the unit.</text> </level> </level> <level label="d"> <text>A unit shall give public notice of an invitation for auction bids in the same manner as required for an invitation for bids.</text> </level> <level label="e"> <level label="1"> <level label="i"> <text>Multiple price bids are permitted in response to an invitation for auction bids.</text> </level> <level label="ii"> <text>When a bidder submits multiple bids, each bid shall be judged independently and shall not revoke previous bids of that bidder.</text> </level> </level> <level label="2"> <text>A procurement officer shall:</text> <level label="i"> <text>receive bids in public at the time and place designated in the invitation for auction bids; and</text> </level> <level label="ii"> <text>record the amount of each bid at the time it is received.</text> </level> </level> <level label="3"> <level label="i"> <text>The amount of a price bid shall be available for public inspection from the time it is received.</text> </level> <level label="ii"> <text>The identity of the bidder submitting a price bid shall not be available for public inspection until bidding has ended.</text> </level> </level> <level label="4"> <text>Except as provided in paragraph (5) of this subsection, a bid is irrevocable, after receipt, for the period specified in the invitation for auction bids.</text> </level> <level label="5"> <text>A procurement officer may allow a bidder to correct or withdraw a bid if correction or withdrawal is:</text> <level label="i"> <text>allowed under regulations adopted under this Division II applicable to an invitation for bids; and</text> </level> <level label="ii"> <text>approved in writing by the Office of the Attorney General.</text> </level> </level> </level> <level label="f"> <level label="1"> <text>After obtaining any approval required by law, the procurement officer shall award the procurement contract to the responsible bidder who submits the responsive bid that:</text> <level label="i"> <text>is the lowest bid price; or</text> </level> <level label="ii"> <text>if the invitation for auction bids so provides, is the lowest evaluated bid price.</text> </level> </level> <level label="2"> <text>If, after bids have been received, a procurement officer determines that only one responsible bidder has submitted a responsive bid, the unit may negotiate the procurement contract with that one bidder under the procedure for sole source procurement.</text> </level> <level label="3"> <level label="i"> <text>After bids have been received, a procurement officer may award a procurement contract on the basis of revised bids if:</text> <level label="1"> <text>all bids are rejected under § 13–206(b) of this title;</text> </level> <level label="2"> <text>all bid prices exceed the funds available for the procurement; or</text> </level> <level label="3"> <text>with the approval of the head of a primary procurement unit or a designee, the procurement officer determines that all bids are unreasonable as to at least one requirement and the delay that would result from issuing a new invitation for auction bids with revised specifications or quantities would be fiscally disadvantageous or otherwise not in the best interests of the State.</text> </level> </level> <level label="ii"> <text>If there is more than one bidder, discussions about revised specifications or quantities shall be conducted with all responsible bidders who submitted responsive bids. The bidders shall be treated fairly and equally with respect to any discussions.</text> </level> <level label="iii"> <text>If one of the conditions set forth under subparagraph (i) of this paragraph exists, as promptly as possible, the procurement officer shall:</text> <level label="1"> <text>issue an invitation for revised auction bids, which shall state whether the award will be made without competitive negotiations; and</text> </level> <level label="2"> <text>require a prompt response to that invitation.</text> </level> </level> <level label="iv"> <text>An invitation for revised auction bids is not subject to the notice requirements in subsection (d) of this section.</text> </level> <level label="v"> <text>After revised bids have been submitted, negotiations with bidders may not be conducted unless the procurement officer determines that there is a compelling reason to negotiate.</text> </level> <level label="vi"> <text>After revised bids have been received and any approval required by law has been obtained, the procurement officer shall award the procurement contract to the responsible bidder who submits a responsive bid that:</text> <level label="1"> <text>is the lowest bid price; or</text> </level> <level label="2"> <text>if the invitation for revised bids so provides, is the lowest evaluated bid price.</text> </level> </level> </level> </level> <level label="g"> <text>Not more than 30 days after the execution and approval of a procurement contract awarded under this section, a unit shall publish notice of the award in eMaryland Marketplace.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-112" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="1" subtitle_name="Methods of Source Selection"> <level label="a"> <text>In this section, “Department” means the Department of General Services or the Department of Transportation.</text> </level> <level label="b"> <text>Qualification based selection shall only be used by the Department if the procurement:</text> <level label="1"> <text>is for architectural services, engineering services, or land surveying services;</text> </level> <level label="2"> <text>is made on a competitive basis;</text> </level> <level label="3"> <text>includes an evaluation of the technical proposals and qualifications of at least two persons; and</text> </level> <level label="4"> <text>the services cannot be provided feasibly and economically by existing in–house resources.</text> </level> </level> <level label="c"> <level label="1"> <text>Whenever a procurement is based on qualification based selection, a procurement officer shall seek proposals by issuing a request for architectural services, engineering services, or land surveying services.</text> </level> <level label="2"> <text>A request for architectural services, engineering services, or land surveying services shall include a statement:</text> <level label="i"> <text>describing generally the architectural services, engineering services, or land surveying services that are the subject of the procurement; and</text> </level> <level label="ii"> <text>indicating how an interested person may receive information about the procurement, including a comprehensive description of the nature and scope of the architectural services, engineering services, or land surveying services.</text> </level> </level> </level> <level label="d"> <text>The Department shall publish reasonable and timely notice of a request for architectural services, engineering services, or land surveying services in eMaryland Marketplace.</text> </level> <level label="e"> <text>The Department shall:</text> <level label="1"> <text>evaluate the technical proposals and qualifications of the persons submitting the proposals; and</text> </level> <level label="2"> <text>determine an order of priority based on those evaluations.</text> </level> </level> <level label="f"> <level label="1"> <text>From the results of the selection process under this section, the Department shall:</text> <level label="i"> <text>begin negotiations with the most qualified persons; and</text> </level> <level label="ii"> <text>try to negotiate a procurement contract with that person at a rate of compensation that is fair, competitive, and reasonable.</text> </level> </level> <level label="2"> <text>In determining the rate of compensation under this subsection, the Department shall:</text> <level label="i"> <text>consider the scope and complexity of the architectural services, engineering services, or land surveying services required; and</text> </level> <level label="ii"> <text>conduct a detailed analysis of the cost of those services.</text> </level> </level> <level label="3"> <level label="i"> <text>In determining the rate of compensation under this subsection, the Department of Transportation also shall comply with limits on costs reimbursement, including overhead limits established by the Department.</text> </level> <level label="ii"> <text>In setting the limits under subparagraph (i) of this paragraph, the Department of Transportation shall consider the goal of the selection process as well as the reasonable cost of architectural services, engineering services, or land surveying services.</text> </level> </level> </level> <level label="g"> <text>If the Department is unable to negotiate a satisfactory procurement contract at a rate of compensation that is fair, competitive, and reasonable, it shall:</text> <level label="1"> <text>terminate negotiations with the most qualified person; and</text> </level> <level label="2"> <text>negotiate in the same manner with the next most qualified person and, if necessary, continue negotiations in accordance with the procedures under this section until the Department reaches an agreement.</text> </level> </level> <level label="h"> <text>After obtaining any approval required by law, the procurement officer shall award a procurement contract to the most qualified person with whom an agreement was reached on compensation that is fair, competitive, and reasonable.</text> </level> <level label="i"> <text>Not more than 30 days after the execution and approval of a procurement contract awarded under this section, the Department shall publish in eMaryland Marketplace notice of the award.</text> </level> <level label="j"> <text>All documents relating to the award of a procurement contract are to be made available to the public, including:</text> <level label="1"> <text>technical resumes;</text> </level> <level label="2"> <text>technical proposals;</text> </level> <level label="3"> <text>the procurement contract;</text> </level> <level label="4"> <text>scope of services;</text> </level> <level label="5"> <text>programs/projects;</text> </level> <level label="6"> <text>staff reports;</text> </level> <level label="7"> <text>internal worksheets; and</text> </level> <level label="8"> <text>all other information relating to the negotiation and award of a procurement contract under this section.</text> </level> </level> <level label="k"> <level label="1"> <text>The Department shall waive the requirements in subsections (b), (e), (f), (g), and (j) of this section if:</text> <level label="i"> <text>the Department determines that:</text> <level label="1"> <text>the architectural services, engineering services, or land surveying services cannot be defined so completely as to carry out those requirements; or</text> </level> <level label="2"> <text>the specifications require architectural services, engineering services, or land surveying services that are available only from a bona fide single source or a proprietary product or process;</text> </level> </level> <level label="ii"> <text>the Governor declares an emergency;</text> </level> <level label="iii"> <text>after a natural disaster, public health and safety are endangered; or</text> </level> <level label="iv"> <text>on the recommendation of the Secretary of the Department and a finding by the Governor that extraordinary circumstances exist, the Board of Public Works determines that:</text> <level label="1"> <text>for a particular project, urgent circumstances require the selection of a contractor on an expedited basis;</text> </level> <level label="2"> <text>expedited selection best serves the public interest; and</text> </level> <level label="3"> <text>the need for an expedited selection outweighs the benefits of carrying out those requirements.</text> </level> </level> </level> <level label="2"> <text>A waiver and the reasons for it shall be documented and:</text> <level label="i"> <text>immediately reported to eMaryland Marketplace for publication; and</text> </level> <level label="ii"> <text>reported to the Legislative Policy Committee within 30 days after the waiver occurs.</text> </level> </level> </level> <level label="l"> <level label="1"> <text>The Department may not award a procurement contract to a person under this subtitle unless:</text> <level label="i"> <text>the person submits:</text> <level label="1"> <text>an affidavit of noncollusion; and</text> </level> <level label="2"> <text>a price quotation; and</text> </level> </level> <level label="ii"> <text>for a procurement contract costing more than $200,000, the person has executed a truth–in–negotiation certificate.</text> </level> </level> <level label="2"> <text>The truth–in–negotiation certificate shall state that:</text> <level label="i"> <text>wage rates and other factual unit costs supporting wages are accurate, complete, and current as of the time of contracting; and</text> </level> <level label="ii"> <text>the original price of the procurement contract and any additions to the procurement contract will be adjusted to exclude any significant price increase if the Department determines that the price increase is due to wage rates or other factual unit costs that were inaccurate, incomplete, or not current as of the time of contracting.</text> </level> </level> <level label="3"> <text>An adjustment to the procurement contract shall be made within 1 year after the procurement contract is completed.</text> </level> </level> <level label="m"> <text>The Department may not award a procurement contract for architectural services, engineering services, or land surveying services that:</text> <level label="1"> <text>is a cost–plus–a–percentage–of–cost contract; or</text> </level> <level label="2"> <text>includes fee schedules that are based on a percentage of construction costs.</text> </level> </level> <level label="n"> <level label="1"> <text>The State may postaudit the rates of contractors performing architectural services, engineering services, or land surveying services.</text> </level> <level label="2"> <text>All rates used in a cost–plus–fixed–fee procurement contract shall be verified by postaudit if:</text> <level label="i"> <text>the compensation is more than $50,000 and the procurement contract involves a unit other than a transportation unit; and</text> </level> <level label="ii"> <text>the compensation is more than $25,000 and the procurement contract involves a transportation unit.</text> </level> </level> <level label="3"> <text>On request by a procuring authority of any political subdivision of the State that is considering an architect, an engineer, or a land surveyor for a specific project, any State audit of the architect, engineer, or land surveyor shall be made available.</text> </level> </level> <level label="o"> <level label="1"> <text>The Department may terminate without liability a procurement contract for architectural services, engineering services, or land surveying services if:</text> <level label="i"> <text>there has been a conviction of a crime arising out of or in connection with the procurement contract or any payment to be made under the procurement contract; or</text> </level> <level label="ii"> <text>there has been a breach or violation of any provision of this subtitle.</text> </level> </level> <level label="2"> <text>Subject to subsection (a) of this section, the Department may deduct from the procurement contract price or otherwise recover the full amount of any fee, commission, gift, percentage, or other consideration paid in violation of this subtitle.</text> </level> <level label="3"> <text>If a procurement contract is terminated under this section, the contractor:</text> <level label="i"> <text>is entitled only to the earned value of the work completed as of the date of termination, plus termination costs;</text> </level> <level label="ii"> <text>is liable for any costs incurred for completion of the work over the maximum amount payable to the contractor under the procurement contract; and</text> </level> <level label="iii"> <text>shall refund all profits or fixed fees realized under the procurement contract.</text> </level> </level> <level label="4"> <level label="i"> <text>The provisions of this section are in addition to any other right or remedy allowed by law.</text> </level> <level label="ii"> <text>By carrying out this section, the Department does not waive any other right or remedy provided by law.</text> </level> </level> </level> <level label="p"> <text>A person who violates any provision of this section is guilty of a felony and on conviction is subject to a fine not exceeding $20,000 or imprisonment not exceeding 10 years or both.</text> </level> <level label="q"> <level label="1"> <text>The Department of General Services and the Department of Transportation shall adopt regulations that provide substantially similar procedures to carry out this section.</text> </level> <level label="2"> <text>The procedures of the Department shall ensure that a recommendation to the Board of Public Works for the award of a procurement contract for architectural services, engineering services, or land surveying services costing over $200,000 is made on a competitive basis and includes an evaluation of the technical proposals and qualifications of at least two persons.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-113" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="1" subtitle_name="Methods of Source Selection"> <level label="a"> <text>The designated procurement units may adopt master contracting, a streamlined procurement method, to provide for the qualification of an offeror in one or more categories of services, supplies, or commodities.</text> </level> <level label="b"> <text>If a designated procurement unit adopts master contracting, the master contracting method shall include:</text> <level label="1"> <text>the categories of services, supplies, or commodities in which an offeror may submit a proposal for qualification;</text> </level> <level label="2"> <text>a procedure for the consideration and approval of proposals for qualification of multiple offerors in each category of services, supplies, or commodities;</text> </level> <level label="3"> <text>the execution of a standard contract for a specified period of time between the State and an offeror approved as a master contractor; and</text> </level> <level label="4"> <text>a performance evaluation procedure to be used by a unit of the Executive Branch to evaluate the performance of a qualified offeror that has completed work on a task order.</text> </level> </level> <level label="c"> <level label="1"> <text>A unit of the Executive Branch that requires services, supplies, or commodities covered under a master contract may issue a solicitation for a task order to a master contractor consistent with the regulations adopted under § 13–114 of this subtitle.</text> </level> <level label="2"> <text>Except as provided in subsection (f) of this section, the solicitation for a task order shall include a statement of the:</text> <level label="i"> <text>factors that will be used in evaluating a master contractor’s response; and</text> </level> <level label="ii"> <text>relative importance of each factor.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>This subsection does not apply to a task order designated as a small business reserve in accordance with § 14–502 of this article.</text> </level> <level label="2"> <text>Except as provided in subsection (f) of this section, if the unit of the Executive Branch expects that the total cost of the services, supplies, or commodities will exceed $500,000, the unit shall issue a solicitation for a task order to all master contractors in the appropriate category established by the designated procurement unit.</text> </level> <level label="3"> <text>If the unit of the Executive Branch expects that the total cost of the services, supplies, or commodities will exceed $100,000 but will not exceed $500,000, the unit shall issue a solicitation for a task order to a minimum of six qualified master contractors on a rotating basis for master contracts designated by the Chief Procurement Officer or all master contractors, whichever is less, in the appropriate category established by the designated procurement unit.</text> </level> <level label="4"> <text>If the unit of the Executive Branch expects that the total cost of the services, supplies, or commodities will be $100,000 or less, the unit shall issue a solicitation for a task order to a minimum of three qualified master contractors on a rotating basis for master contracts designated by the Chief Procurement Officer or all master contractors, whichever is fewer, in the appropriate category established by the designated procurement unit.</text> </level> </level> <level label="e"> <level label="1"> <text>Except as provided in subsection (f) of this section, after a unit of the Executive Branch receives responses from master contractors to a solicitation for a task order, the unit shall evaluate the responses and may select a master contractor based on the response that is determined to be the most advantageous to the State considering the evaluation factors set forth in the task order.</text> </level> <level label="2"> <text>Except as provided in paragraph (3) of this subsection, oral presentations are required prior to selecting a master contractor when:</text> <level label="i"> <text>the total value of the task order is expected to exceed $2,000,000 for architectural and engineering services;</text> </level> <level label="ii"> <text>the total value of the task order is expected to exceed $10,000,000 for construction and construction related services; or</text> </level> <level label="iii"> <text>for all other procurement, including information technology and professional services, when the total value of the task order is expected to exceed $5,000,000.</text> </level> </level> <level label="3"> <text>If the procurement officer makes a written determination that oral presentations are unlikely to aid in the evaluation process, oral presentations will not be required.</text> </level> </level> <level label="f"> <text>The requirements of subsections (c)(2), (d), and (e)(1) of this section do not apply to a master contract for construction if the master contract:</text> <level label="1"> <text>is awarded through a competitive process in accordance with this subtitle; and</text> </level> <level label="2"> <text>states:</text> <level label="i"> <text>how task orders will be awarded; and</text> </level> <level label="ii"> <text>the maximum number of qualified contractors that will be awarded a master contract for construction.</text> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-114" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="1" subtitle_name="Methods of Source Selection"> <level label="a"> <text>The Board shall adopt regulations in accordance with Title 10, Subtitle 1 of the State Government Article to establish a uniform process for the solicitation of master contracts and task orders.</text> </level> <level label="b"> <text>Each designated procurement unit shall ensure compliance with the regulations set forth in subsection (a) of this section.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-115" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="1" subtitle_name="Methods of Source Selection"> <level label="a"> <text>The Department of Information Technology shall require basic security, data collection, and privacy requirements to be included in a contract under which a third–party contractor will:</text> <level label="1"> <text>have access to and use State information technology equipment, systems, or services;</text> </level> <level label="2"> <text>collect, store, or process personal information as defined in § 10–1301 of the State Government Article; or</text> </level> <level label="3"> <text>connect to State information technology equipment, systems, or services.</text> </level> </level> <level label="b"> <text>The security requirements developed under subsection (a) of this section shall be consistent with a widely recognized security standard, including National Institute of Standards and Technology SP 800–171, ISO27001, or Cybersecurity Maturity Model Certification.</text> </level> <level label="c"> <text>The privacy requirements developed under subsection (a) of this section shall be consistent with widely recognized privacy standards, including National Institute of Standards and Technology (NIST) SP privacy framework v1, NIST 800 SP 800–53 v5, and NIST 800–207 SP zero trust architecture, as they may be updated from time to time.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-116" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="1" subtitle_name="Methods of Source Selection"> <level label="a"> <text>In this section, “proof of concept” means a test, evaluation, demonstration, or pilot project of a good, service, or technology in a real–world environment to evaluate whether the good, service, or technology can be successfully deployed and is beneficial to the State.</text> </level> <level label="b"> <level label="1"> <text>A competitive proof of concept procurement is a formal competitive procurement method that may be used to solicit proposals for the conduct of a proof of concept and participation in subsequent phases of the procurement, including full implementation or deployment when the head of a unit determines the process to be appropriate and in the best interests of the unit, including:</text> <level label="i"> <text>testing software–as–a–service or off–the–shelf software;</text> </level> <level label="ii"> <text>testing new, innovative products or services; or</text> </level> <level label="iii"> <text>testing a product or service conceptualized or conceived of by a unit of State government.</text> </level> </level> <level label="2"> <level label="i"> <level label="1"> <text>After obtaining the approval of the head of the unit and before conducting a competitive proof of concept procurement, the unit shall obtain approval from the Chief Procurement Officer, or the Chief Procurement Officer’s designee.</text> </level> <level label="2"> <text>The request for approval under this subparagraph shall demonstrate that conducting a competitive proof of concept procurement is in the best interest of the State.</text> </level> </level> <level label="ii"> <text>If the procurement is for information technology, before conducting a competitive proof of concept procurement, the unit shall obtain approval from the Secretary of Information Technology, or the Secretary’s designee.</text> </level> <level label="iii"> <text>The Secretary of Information Technology may grant approval for a competitive proof of concept procurement for information technology if the unit:</text> <level label="1"> <text>has sufficient internal resources to manage the proof of concept, including human capital, subject matter expertise, and technological infrastructure, or has the means to obtain these resources; and</text> </level> <level label="2"> <text>enters into a memorandum of understanding with the Department of Information Technology that requires regular status updates, vendor capacity, and any other information necessary for the Department of Information Technology to evaluate whether the proof of concept can be successfully deployed and is beneficial to the State.</text> </level> </level> </level> </level> <level label="c"> <level label="1"> <text>A competitive proof of concept procurement solicitation shall include a statement of:</text> <level label="i"> <text>the scope of work, statement of need, or project description, including the intended use, quantity, estimated time frame for the proof of concept, and anticipated number of proof of concept awards that will be made; and</text> </level> <level label="ii"> <text>the factors, including price, that will be used at each phase in evaluating proposals and the relative importance of each.</text> </level> </level> <level label="2"> <text>A solicitation may be distributed to vendors known to offer goods or services within the scope of the proof of concept and shall be posted on eMaryland Marketplace Advantage.</text> </level> </level> <level label="d"> <text>After receipt of proposals but before award of a procurement contract, a unit may:</text> <level label="1"> <text>conduct discussions with and receive clarifications from an offeror;</text> </level> <level label="2"> <text>request product samples for testing by the unit or a demonstration of a product or service and use these samples or demonstrations in its evaluation process; and</text> </level> <level label="3"> <text>allow offerors reasonably susceptible of being selected for award to participate in all subsequent phases of the procurement including submission of best and final offers.</text> </level> </level> <level label="e"> <level label="1"> <text>A unit may issue a contract to each offeror reasonably susceptible of being selected for award to deliver product samples for testing or provide a demonstration made under subsection (d)(2) of this section.</text> </level> <level label="2"> <text>A contract awarded under this subsection does not preclude a vendor from continuing to participate in subsequent phases of the procurement.</text> </level> </level> <level label="f"> <text>A unit may award one or more contracts for full implementation or deployment of the good, service, or technology evaluated during the proof of concept if it is in the best interest of the State.</text> </level> <level label="g"> <text>A unit shall publish notice of a contract awarded under this section in excess of the small procurement amount specified in § 13–109 of this subtitle in eMaryland Marketplace Advantage.</text> </level> <level label="h"> <text>The Department of General Services, in consultation with the Department of Information Technology, shall adopt regulations, policies, and procedures for the development and implementation of competitive proof of concept procurements.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-117" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="1" subtitle_name="Methods of Source Selection"> <level label="a"> <text>It is the intent of the General Assembly to:</text> <level label="1"> <text>recognize the need for State agencies to be responsive to the requests and legislative directives of the General Assembly;</text> </level> <level label="2"> <text>reduce the time it takes for State agencies to procure consultants to assist with legislative mandates that have deadlines specified in law; and</text> </level> <level label="3"> <text>be timely in addressing climate change, environmental, energy, and greenhouse gas emissions related issues.</text> </level> </level> <level label="b"> <text>This section applies only to the procurement of consultants that:</text> <level label="1"> <text>are legislatively mandated with specific time frames established in law; and</text> </level> <level label="2"> <text>will address issues related only to climate change, the environment, energy, and greenhouse gas emissions.</text> </level> </level> <level label="c"> <text>The following units are authorized to issue a procurement contract using a competitive sealed bid method, competitive sealed proposal method, or expedited procurement procedures for amounts higher than their designated small procurement delegation authorities:</text> <level label="1"> <text>the Public Service Commission;</text> </level> <level label="2"> <text>the Office of People’s Counsel;</text> </level> <level label="3"> <text>the Maryland Energy Administration;</text> </level> <level label="4"> <text>the Department of the Environment; and</text> </level> <level label="5"> <text>the Department of Natural Resources.</text> </level> </level> <level label="d"> <text>Before awarding a procurement contract under this section, the procurement officer shall obtain the approval of:</text> <level label="1"> <text>the head of the unit; and</text> </level> <level label="2"> <text>the Chief Procurement Officer, or their designee.</text> </level> </level> <level label="e"> <level label="1"> <text>The Chief Procurement Officer, or their designee, shall approve a procurement contract submitted under this section if it complies with the requirements of this section.</text> </level> <level label="2"> <text>If the Chief Procurement Officer, or their designee, does not respond to a request to approve a procurement contract submitted under this section within 5 business days after receiving the contract, the contract shall be considered approved.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-201" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Change order” means a written order that:</text> <level label="1"> <text>is signed by the procurement officer; and</text> </level> <level label="2"> <text>directs the contractor to make changes that the procurement contract authorizes the procurement officer to order without the consent of the contractor.</text> </level> </level> <level label="c"> <text>“Contract modification” means a written alteration that:</text> <level label="1"> <text>affects specifications, delivery point, date of delivery, period of performance, price, quantity, or other provisions of a procurement contract; and</text> </level> <level label="2"> <text>is accomplished by mutual action of the parties to the procurement contract.</text> </level> </level> <level label="d"> <text>“Cost-reimbursement contract” means a procurement contract under which the State reimburses a contractor for fees and other costs that are:</text> <level label="1"> <text>recognized as allowable and allocable under the regulations of the Board on price and cost principles; and</text> </level> <level label="2"> <text>within a stated ceiling.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-202" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <text>After a solicitation is issued and until a recommendation is made by a procurement officer, a procurement officer may disclose to a person outside the Executive Department only:</text> <level label="1"> <text>whether a decision has been made regarding a solicitation; and</text> </level> <level label="2"> <text>information that is available to the public under Title 4, Subtitles 1 through 5 of the General Provisions Article.</text> </level> </level> <level label="b"> <text>After a solicitation is issued, a procurement officer shall record and include in the procurement file the following information from an inquiry from a source outside the Executive Department:</text> <level label="1"> <text>the date and time of the inquiry;</text> </level> <level label="2"> <text>the name and affiliation of the person making the inquiry; and</text> </level> <level label="3"> <text>the substance and nature of the inquiry.</text> </level> </level> <level label="c"> <text>A procurement officer shall maintain a file on each procurement that includes:</text> <level label="1"> <text>a record of all inquiries required to be recorded under subsection (b) of this section;</text> </level> <level label="2"> <text>all written solicitations by an agency or unit;</text> </level> <level label="3"> <text>all offers received;</text> </level> <level label="4"> <text>all internal and external correspondence regarding the procurement;</text> </level> <level label="5"> <text>written documentation from the procurement officer describing efforts to confirm the information in the affidavits submitted by the successful bidder or offeror; and</text> </level> <level label="6"> <text>the final contract.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-205" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <text>A unit:</text> <level label="1"> <text>shall draft specifications to encourage maximum practicable competition without modifying the requirements of the State; and</text> </level> <level label="2"> <text>may not draft specifications to favor a single prospective bidder or offeror.</text> </level> </level> <level label="b"> <text>A unit shall require a prospective bidder or offeror of supplies or construction to state in the bid or offer:</text> <level label="1"> <text>whether the procurement will or may include recycled materials; and</text> </level> <level label="2"> <text>the types, amounts, and application of recycled materials that the bidder or offeror intends to include in the procurement.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-206" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <level label="1"> <text>A procurement officer shall reject a bid or proposal if the procurement officer determines that:</text> <level label="i"> <text>the bid is nonresponsive or the proposal is unacceptable; or</text> </level> <level label="ii"> <text>the bidder or offeror is not responsible.</text> </level> </level> <level label="2"> <text>The procurement officer shall include a determination under this subsection in the procurement file.</text> </level> </level> <level label="b"> <text>If, with the approval of the Board, a unit determines that it is fiscally advantageous or otherwise in the best interests of the State, the unit may:</text> <level label="1"> <text>cancel an invitation for bids, a request for proposals, or other solicitation; or</text> </level> <level label="2"> <text>reject all bids or proposals.</text> </level> </level> <level label="c"> <text>A procurement officer may determine that a person is not a responsible bidder or offeror for:</text> <level label="1"> <text>unreasonable failure to supply information promptly in connection with a determination of responsibility under subsection (a) of this section; or</text> </level> <level label="2"> <text>any other reason indicating that the person does not have:</text> <level label="i"> <text>the capability in all respects to perform fully the requirements for a procurement contract; or</text> </level> <level label="ii"> <text>the integrity and reliability that will ensure good faith performance.</text> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-207" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <text>Except as otherwise provided in this section, a procurement officer may not require a bidder or offeror to provide bid security on a procurement contract if the procurement officer expects the price to be less than or equal to the small procurement amount specified in § 13–109 of this title.</text> </level> <level label="b"> <level label="1"> <text>A procurement officer shall require a bidder or offeror to provide bid security on a procurement contract for construction if:</text> <level label="i"> <text>the price is expected to exceed the small procurement amount specified in § 13–109 of this title; or</text> </level> <level label="ii"> <text>required by federal law or a condition of federal assistance requires the security.</text> </level> </level> <level label="2"> <text>The amount of bid security required for a procurement contract for construction shall be:</text> <level label="i"> <text>at least 5% of the bid or price proposal; or</text> </level> <level label="ii"> <text>if the bid or price proposal states a rate but not a total price, an amount determined by the procurement officer.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>A procurement officer may require a bidder or offeror to provide bid security on a procurement contract for services, supplies, or construction related services if the price of the procurement contract is expected to exceed the small procurement amount specified in § 13–109 of this title.</text> </level> <level label="2"> <text>A procurement officer shall require a bidder or offeror to provide bid security on a procurement contract for services, supplies, or construction related services if federal law or a condition of federal assistance requires the security.</text> </level> <level label="3"> <text>The amount of bid security required for a procurement contract for services, supplies, or construction related services shall be an amount determined by the procurement officer. If a bid or proposal states a rate but not a total price, the procurement officer shall determine the dollar amount of the bid security.</text> </level> </level> <level label="d"> <text>Bid security under this section shall be:</text> <level label="1"> <text>a bond provided by a surety company authorized to do business in the State;</text> </level> <level label="2"> <text>cash; or</text> </level> <level label="3"> <text>another form of security allowed by regulation.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-208" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <text>Except as provided under subsection (b) of this section, if a procurement officer requires bid security, the procurement officer shall reject a bid or proposal that is not accompanied by proper security.</text> </level> <level label="b"> <text>A procurement officer may accept a bid or proposal that is accompanied by bid security in less than the amount required if:</text> <level label="1"> <text>the procurement officer determines that:</text> <level label="i"> <text>the deficiency in the amount is insubstantial; and</text> </level> <level label="ii"> <text>acceptance of the bid or proposal would be in the best interests of the State; and</text> </level> </level> <level label="2"> <text>the procurement officer further determines that:</text> <level label="i"> <text>the bid or proposal was the only one submitted and there is no time for rebidding;</text> </level> <level label="ii"> <text>the bid security became inadequate as a result of the correction of a mistake in the bid or proposal or as a result of a modification in the bid or proposal in accordance with applicable regulations, and the bidder or offeror increased the amount of bid security to required limits within 48 hours after the correction or modification; or</text> </level> <level label="iii"> <text>after consideration of the risks involved and the difference between the lowest bid and the next lowest bid, it would be fiscally advantageous to the State to accept the lowest bid or proposal.</text> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-209" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <text>Whenever a bidder or offeror withdraws a bid or proposal, action may be taken against the bid security unless:</text> <level label="1"> <text>there is a mistake in the bid or proposal; and</text> </level> <level label="2"> <text>the procurement officer allows the bidder or offeror to withdraw before the procurement contract is awarded.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-210" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <level label="1"> <text>If a procurement officer decides to conduct a pre–bid conference to explain the requirements of a procurement that is expected to exceed $100,000, as soon as practicable after the conference concludes, the procurement officer shall have written minutes of the conference prepared.</text> </level> <level label="2"> <text>The minutes of a pre–bid conference are public records and shall be open to public inspection during ordinary business hours.</text> </level> </level> <level label="b"> <level label="1"> <text>Subject to Title 4 of the General Provisions Article:</text> <level label="i"> <text>a summary of the final evaluation of a proposal shall be open to public inspection;</text> </level> <level label="ii"> <text>after an award, all proposals shall be open to public inspection; and</text> </level> <level label="iii"> <text>at and after bid opening, the contents of a bid and any document submitted with the bid shall be open to public inspection.</text> </level> </level> <level label="2"> <text>Except as otherwise provided in this section, Title 4 of the General Provisions Article shall govern any request for the disclosure of information related to a procurement.</text> </level> </level> <level label="c"> <text>A procurement officer may deny public access to the advisory or deliberative records of an evaluator of a proposal if the records would not be available by law to a private party in litigation with the unit.</text> </level> <level label="d"> <level label="1"> <text>Before bid opening:</text> <level label="i"> <text>bids shall remain sealed; and</text> </level> <level label="ii"> <text>the State may not disclose the name of a bidder.</text> </level> </level> <level label="2"> <text>Before the closing date for proposals, a procurement officer may not disclose the name of a person who has submitted a proposal.</text> </level> <level label="3"> <text>Before awarding a procurement contract based on competitive sealed proposals, the State may not disclose the contents of a proposal to any person other than a person responsible for evaluating or reviewing the proposal.</text> </level> </level> <level label="e"> <text>Subsections (b)(1), (c), and (d) of this section do not affect the authority of the Board of Contract Appeals or a court of competent jurisdiction to:</text> <level label="1"> <text>decide that information is discoverable in an administrative or judicial proceeding; and</text> </level> <level label="2"> <text>compel disclosure.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-211" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <text>In this section, “procurement official” means a procurement officer or an individual who participates in the drafting of specifications for procurement.</text> </level> <level label="b"> <text>During the conduct of a procurement, a competing contractor, or any officer, employee, representative, agent, or consultant of any competing contractor, may not knowingly:</text> <level label="1"> <text>make any offer or promise of future employment or business opportunity to, or engage in any discussion of future employment or business opportunity with, any procurement official of the agency conducting the procurement;</text> </level> <level label="2"> <text>offer, give, or promise to offer or give any money, gratuity, or other thing of value to any procurement official of the agency conducting the procurement; or</text> </level> <level label="3"> <text>solicit or obtain from any officer or employee of an agency conducting the procurement, before the award of a contract, any proprietary or source selection information regarding the procurement.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-212" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <text>Each invitation for bids or request for proposals for a contract that will involve the selection of a consultant who is to assist the unit in the formation, award, or execution of any State contract shall require that a bidder or offeror provide to the unit an affidavit that discloses any actual or potential conflict of interest of which the bidder or offeror knows, or can reasonably be expected to know, in accordance with regulations adopted under this section.</text> </level> <level label="b"> <text>The Board shall adopt regulations concerning the disclosure and evaluation of conflicts of interest under this section.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-212.1" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <text>Except as provided in subsection (d) of this section, an individual who assists an executive unit in the drafting of specifications, an invitation for bids, a request for proposals for a procurement, or the selection or award made in response to an invitation for bids or a request for proposals, or a person that employs the individual during the period of assistance, may not:</text> <level label="1"> <text>submit a bid or proposal for that procurement; or</text> </level> <level label="2"> <text>assist or represent another person, directly or indirectly, who is submitting a bid or proposal for that procurement.</text> </level> </level> <level label="b"> <text>For purposes of subsection (a) of this section, assisting in the drafting of specifications, an invitation for bids, or a request for proposals for a procurement does not include:</text> <level label="1"> <text>providing descriptive literature, such as catalogue sheets, brochures, technical data sheets, or standard specification “samples”, whether requested by an executive unit or provided unsolicited;</text> </level> <level label="2"> <text>submitting written or oral comments on a specification prepared by an executive unit or on a solicitation for a bid or proposal when comments are solicited from two or more persons as part of a request for information or a prebid or preproposal process;</text> </level> <level label="3"> <text>providing specifications for a sole source procurement made in accordance with § 13–107 of this title;</text> </level> <level label="4"> <text>providing architectural and engineering services for:</text> <level label="i"> <text>programming, master planning, or other project planning services; or</text> </level> <level label="ii"> <text>the design of a construction project if:</text> <level label="1"> <text>the design services do not involve lead or prime design responsibilities or construction phase responsibilities on behalf of the State; and</text> </level> <level label="2"> <level label="A"> <text>the anticipated value of the procurement contract at the time of advertisement is at least $2,500,000 and not more than $100,000,000; or</text> </level> </level> <level label="B"> <text>regardless of the amount of the procurement contract, the payment to the individual or person for the design services does not exceed $500,000;</text> </level> </level> </level> <level label="5"> <text>for a procurement of health, human, social, or educational services, comments solicited from two or more persons as part of a request for information, including written or oral comments on a draft specification, an invitation for bids, or a request for proposals; or</text> </level> <level label="6"> <text>providing information that does not provide an unfair competitive advantage for any bidder or offeror.</text> </level> </level> <level label="c"> <text>A unit that receives comments as described in subsection (b)(2) and (5) of this section shall retain:</text> <level label="1"> <text>any written comments; and</text> </level> <level label="2"> <text>a record of any oral comments.</text> </level> </level> <level label="d"> <level label="1"> <text>The prohibitions established under subsection (a) of this section apply from the date of issuance of the first invitation for bids or request for proposals for which the specifications were initially drafted until the later of:</text> <level label="i"> <text>2 years from the date of issuance; or</text> </level> <level label="ii"> <text>the selection or award of a procurement contract in response to the issuance of the invitation for bids or request for proposals or a reissuance of the invitation for bids or request for proposals for which the specifications were initially drafted.</text> </level> </level> <level label="2"> <text>The prohibitions established under subsection (a) of this section do not apply to a subsequent invitation for bids or request for proposals for which the specifications are reused after the initial prohibition is no longer applicable in accordance with paragraph (1) of this subsection.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-213" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <text>In accordance with Title 10, Subtitle 1 of the State Government Article, the Board shall adopt regulations on price and cost principles based on generally accepted accounting principles.</text> </level> <level label="b"> <text>The principles adopted by the Board shall be used:</text> <level label="1"> <text>as guidelines for negotiations on:</text> <level label="i"> <text>estimated costs or fixed prices;</text> </level> <level label="ii"> <text>price adjustments for contract modifications and change orders; and</text> </level> <level label="iii"> <text>settlements of terminated procurement contracts;</text> </level> </level> <level label="2"> <text>to establish the allowability of costs under procurement contract provisions for the reimbursement of costs; and</text> </level> <level label="3"> <text>in any other situation that requires the establishment of the estimated or incurred costs of performing a procurement contract.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-214" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <level label="1"> <text>Subject to § 13-215 of this subtitle and subsection (b) of this section, a unit may enter into a procurement contract based on any method of pricing that will promote the best interests of the State.</text> </level> <level label="2"> <text>If practicable, a unit shall give preference to a fixed-price form of procurement contract.</text> </level> </level> <level label="b"> <level label="1"> <text>A unit may not enter into a cost-plus-a-percentage-of-cost procurement contract.</text> </level> <level label="2"> <text>A contractor who is subject to a cost-reimbursement contract may not enter into a cost-plus-a-percentage-of-cost subcontract.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-215" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <text>A unit may not enter into a cost-reimbursement contract unless the procurement officer determines that:</text> <level label="1"> <text>a cost-reimbursement contract is likely to be less costly to the State than any other type of contract; or</text> </level> <level label="2"> <text>except for leases of real property, the kind or quality of procurement that the unit requires could not be obtained practicably under any other type of contract.</text> </level> </level> <level label="b"> <text>A unit may not enter into a procurement contract that is wholly or partly a cost-reimbursement contract unless the procurement officer determines that the accounting system of the contractor:</text> <level label="1"> <text>will allow timely development of all necessary cost data in the form required by the specific type of procurement contract under consideration; and</text> </level> <level label="2"> <text>is adequate to allocate costs in accordance with generally accepted accounting principles.</text> </level> </level> <level label="c"> <text>A cost-reimbursement contract shall provide that costs, including costs for subcontractors, will be reimbursed only if the costs are allowable and allocable under:</text> <level label="1"> <text>the procurement contract; or</text> </level> <level label="2"> <text>the regulations of the Board on cost principles.</text> </level> </level> <level label="d"> <text>A contractor under a cost-reimbursement contract shall give notice to and, as required under the contract, obtain approval from a procurement officer before the contractor enters into:</text> <level label="1"> <text>a cost-reimbursement subcontract; or</text> </level> <level label="2"> <text>any subcontract involving more than:</text> <level label="i"> <text>$25,000; or</text> </level> <level label="ii"> <text>5% of the estimated cost of the procurement contract.</text> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-216" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <text>Except as provided in subsection (b) of this section, a procurement officer may not require a contractor to provide a performance bond, payment bond, or other security on a procurement contract for construction, construction related services, services, or supplies if the price of the procurement contract is less than or equal to the small procurement amount specified in § 13–109 of this title.</text> </level> <level label="b"> <text>A procurement officer shall require a contractor to provide a performance bond, payment bond, or other security if federal law or a condition of federal assistance requires the security.</text> </level> <level label="c"> <text>If the price of a procurement contract for construction exceeds the small procurement amount specified in § 13–109 of this title for construction, a procurement officer shall require a contractor to provide security as required under Title 17, Subtitle 1 of this article.</text> </level> <level label="d"> <text>A procurement officer may require a contractor to provide a performance bond or other security on a procurement contract for supplies, services, or construction related services if:</text> <level label="1"> <text>circumstances warrant security; and</text> </level> <level label="2"> <text>the price of the procurement contract exceeds the small procurement amount specified in § 13–109 of this title.</text> </level> </level> <level label="e"> <level label="1"> <text>The Board shall adopt regulations to establish separate surety bond forms for procurement officers to use to require security for:</text> <level label="i"> <text>fixed–price contracts; and</text> </level> <level label="ii"> <text>multiyear contracts.</text> </level> </level> <level label="2"> <text>The form for multiyear contracts shall provide for annual and renewable contracts.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-217" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <text>In this section, “multi–year contract” means a procurement contract that requires appropriations for more than 1 fiscal year.</text> </level> <level label="b"> <level label="1"> <text>A unit may enter into a multi–year contract subject to:</text> <level label="i"> <text>standards established by the Board; and</text> </level> <level label="ii"> <text>regulations adopted by the primary procurement unit that is responsible for the type of procurement involved.</text> </level> </level> <level label="2"> <text>A multi–year contract shall be subject to review and approval by that primary procurement unit.</text> </level> </level> <level label="c"> <text>A multi–year contract may not be approved unless each unit reviewing the multi–year contract determines that:</text> <level label="1"> <text>the estimated requirements of the State:</text> <level label="i"> <text>cover the period of the multi–year contract;</text> </level> <level label="ii"> <text>are reasonably firm; and</text> </level> <level label="iii"> <text>are continuing; and</text> </level> </level> <level label="2"> <text>the multi–year contract will serve the best interests of the State by encouraging effective competition or otherwise promoting economy in State procurement.</text> </level> </level> <level label="d"> <level label="1"> <text>If money sufficient for the continued performance of a multi–year contract is not appropriated for any fiscal year, the multi–year contract terminates automatically on the earlier of:</text> <level label="i"> <text>the last day of the fiscal year for which money last was appropriated; or</text> </level> <level label="ii"> <text>the date provided in the termination clause of the procurement contract.</text> </level> </level> <level label="2"> <text>If the multi–year contract is terminated under this subsection, the unit shall reimburse the contractor for the reasonable value of any nonrecurring costs that were:</text> <level label="i"> <text>incurred as a result of the multi–year contract; but</text> </level> <level label="ii"> <text>not amortized in the price of the supplies or services delivered under the multi–year contract.</text> </level> </level> <level label="3"> <text>The cost of termination under this subsection may be paid from any appropriation available for that purpose.</text> </level> </level> <level label="e"> <text>Except as provided in subsection (f) of this section, each multi–year contract, including a lease of real property, shall include an automatic termination clause that:</text> <level label="1"> <text>is not inconsistent with the requirements of subsection (d) of this section; and</text> </level> <level label="2"> <text>discharges both parties to the multi–year contract from future performance of that contract, but not from their existing obligations.</text> </level> </level> <level label="f"> <level label="1"> <text>On the recommendation of the Secretary of General Services, for a multi–year contract to procure energy generated from a Tier 1 renewable source or a Tier 2 renewable source, as defined in § 7–701 of the Public Utilities Article, the Board may waive the requirement to include:</text> <level label="i"> <text>an automatic termination clause under subsection (e) of this section; or</text> </level> <level label="ii"> <text>a termination for convenience clause required under § 13–218(a)(2) of this subtitle.</text> </level> </level> <level label="2"> <text>In determining whether to grant a waiver under paragraph (1) of this subsection, the Board shall consider the effect of imposing the following clause requirements on the ability of the energy supplier to obtain financing for the renewable energy generation project that produces the energy that the State is contracting to procure:</text> <level label="i"> <text>the termination clause requirement under subsection (e) of this section; and</text> </level> <level label="ii"> <text>the termination for convenience clause requirement under § 13–218(a)(2) of this subtitle.</text> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-218" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <text>Each procurement contract shall include clauses covering:</text> <level label="1"> <text>termination for default;</text> </level> <level label="2"> <text>termination wholly or partly by the State for its convenience if the head of the primary procurement unit determines that termination is appropriate;</text> </level> <level label="3"> <text>variations that occur between estimated and actual quantities of work in a procurement contract;</text> </level> <level label="4"> <text>liquidated damages, as appropriate;</text> </level> <level label="5"> <text>specified excuses for nonperformance;</text> </level> <level label="6"> <text>except for real property leases, the unilateral right of the State to order in writing:</text> <level label="i"> <text>changes in the work, if the changes are within the scope of the procurement contract; and</text> </level> <level label="ii"> <text>a temporary stop or delay in performance;</text> </level> </level> <level label="7"> <text>the obligation of the contractor to comply with the political contribution reporting requirements under Title 14 of the Election Law Article, to which the contractor may be subject as required under § 17–402 of this article;</text> </level> <level label="8"> <text>nonvisual access for information technology as required under § 3.5–311 of this article; and</text> </level> <level label="9"> <text>the authorization of a contractor to request a contract modification to provide an equitable adjustment to compensate the contractor for increases in the cost of and time for contract performance due to changes in State law applied by the procurement unit.</text> </level> </level> <level label="b"> <text>In addition to the clauses required under subsection (a) of this section, a procurement contract for construction shall include:</text> <level label="1"> <text>a clause providing for contract modification if the condition of a site differs from the condition described in the specifications; and</text> </level> <level label="2"> <text>a clause covering the requirements for notice of contract claims, submission of contract claims, and resolution of contract claims under § 15–219 of this article.</text> </level> </level> <level label="c"> <text>Each procurement contract shall include a clause that gives to the parties notice that preexisting regulations apply to the procurement contract in accordance with § 11–206 of this article.</text> </level> <level label="d"> <text>At any time after the parties enter into a procurement contract they may include additional clauses in the procurement contract, by consent, without consideration.</text> </level> <level label="e"> <text>A clause required under this section for contract modification of or change orders to a procurement contract for construction shall:</text> <level label="1"> <text>make each contract modification or change order that affects the price of the procurement contract subject to:</text> <level label="i"> <text>prior written approval from the unit and any other person responsible for the procurement contract; and</text> </level> <level label="ii"> <text>prior certification by the fiscal authority responsible for the unit about:</text> <level label="1"> <text>the availability of money; and</text> </level> <level label="2"> <text>the effect of the contract modification or change order on the project budget or the total construction cost; and</text> </level> </level> </level> <level label="2"> <text>prohibit the contract modification or change order if the certification by the fiscal authority discloses that the contract modification or change order will increase the cost beyond budgeted and available money, unless:</text> <level label="i"> <text>sufficient additional money is made available; or</text> </level> <level label="ii"> <text>the scope of the project is adjusted to allow completion within the project budget.</text> </level> </level> </level> <level label="f"> <text>In accordance with § 13–217(f) of this subtitle, the Board may waive the inclusion of a termination for convenience clause required under subsection (a)(2) of this section.</text> </level> <level label="g"> <text>A contract described under § 11–203(a)(1)(xviii)1 or (xx) of this article shall include clauses requiring the nonprofit entity to:</text> <level label="1"> <text>subcontract the performance of historic preservation, archaeology, and conservation services to third–party firms;</text> </level> <level label="2"> <text>competitively procure any subcontracted services in a transparent manner in accordance with applicable State law, including the minority business enterprise requirements under Title 14, Subtitle 3 of this article;</text> </level> <level label="3"> <text>provide annual reports to the unit on partnership outcomes and expenditures, including minority business enterprise subcontracting utilization; and</text> </level> <level label="4"> <text>maximize opportunities for community engagement related to the historic preservation, archaeology, or conservation service opportunity.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-218.1" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <text>In this section, “service contract” has the meaning stated in § 13–401 of the State Personnel and Pensions Article.</text> </level> <level label="b"> <level label="1"> <text>At least 60 days before the issuance of a solicitation for a service contract that is not exempt under § 13–403(c) or § 13–404(b) of the State Personnel and Pensions Article, the unit shall provide the exclusive representative of the employees who may be affected by the service contract with:</text> <level label="i"> <text>written notice of:</text> <level label="1"> <text>work that is being proposed for contracting; and</text> </level> <level label="2"> <text>contracting procedures, requirements, timetables, and employee rights as provided in Title 13, Subtitle 4 of the State Personnel and Pensions Article; and</text> </level> </level> <level label="ii"> <text>a reasonable opportunity to meet and discuss alternatives to the proposed service contract.</text> </level> </level> <level label="2"> <level label="i"> <level label="1"> <text>Except as provided in subsubparagraph 2 of this subparagraph, this paragraph applies to a solicitation for a service contract for janitorial services.</text> </level> <level label="2"> <text>This paragraph does not apply to a service contract for janitorial services under Title 14, Subtitle 1 of this article.</text> </level> </level> <level label="ii"> <text>In consultation with the Department of General Services, the Board shall adopt regulations concerning a solicitation for a service contract for janitorial services to require that a bidder or offeror delineate its costs by category, including:</text> <level label="1"> <text>labor;</text> </level> <level label="2"> <text>cleaning supplies; and</text> </level> <level label="3"> <text>projected man–hours to satisfactorily complete the service.</text> </level> </level> </level> </level> <level label="c"> <text>A violation of this section does not constitute grounds to challenge or appeal an award of a procurement or the process through which the procurement was conducted.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-219" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <text>This section is broadly applicable to all procurements by the State.</text> </level> <level label="b"> <text>Each contract for procurement shall include a nondiscrimination clause as provided in this section.</text> </level> <level label="c"> <text>The nondiscrimination clause shall:</text> <level label="1"> <text>prohibit discrimination in any manner by the contractor against an employee or applicant for employment because of sex, sexual orientation, gender identity, disability, race, age, color, creed, or national origin;</text> </level> <level label="2"> <text>require the contractor to include a similar clause in every subcontract except a subcontract for standard commercial supplies or raw materials; and</text> </level> <level label="3"> <text>require each contractor and subcontractor subject to this clause to post conspicuously a notice that sets forth the provisions of the clause in a place that is available to employees and applicants for employment.</text> </level> </level> <level label="d"> <text>If the nondiscrimination clause is omitted from a contract or subcontract subject to this section, the State may declare the contract to be void. In that event, the contractor is entitled to the reasonable value of work that has been performed and materials that have been provided.</text> </level> <level label="e"> <text>If a contractor willfully fails to comply with the requirements of the nondiscrimination clause and the contract is partly executory, the State may compel the contractor to continue to perform under the contract, but the State:</text> <level label="1"> <text>is liable for no more than the reasonable value of work performed and materials provided after the date on which the breach of contract was or should have been discovered; and</text> </level> <level label="2"> <text>shall deduct any money that has been paid under the contract from the money that becomes due under item (1) of this subsection.</text> </level> </level> <level label="f"> <text>If a subcontractor willfully fails to comply with the requirements of a nondiscrimination clause, the contractor may void the subcontract. In that event, the contractor is liable for no more than the reasonable value of work performed or materials provided.</text> </level> <level label="g"> <level label="1"> <text>Any person, including an employee or prospective employee, who has information about a violation of this section or a nondiscrimination clause may inform the Board.</text> </level> <level label="2"> <text>The Board:</text> <level label="i"> <text>shall cause an immediate investigation of the charge; and</text> </level> <level label="ii"> <text>if it concludes that the charge is true, may invoke any remedy available by law.</text> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-220" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <text>In this section, “established catalog price” means the price included in the most current catalog, price list, schedule, or other form that:</text> <level label="1"> <text>is regularly maintained by the manufacturer or supplier of an item;</text> </level> <level label="2"> <text>is published or available for inspection by customers; and</text> </level> <level label="3"> <text>states:</text> <level label="i"> <text>prices at which sales are currently or were last made to the general buying public; or</text> </level> <level label="ii"> <text>discounted prices at which sales are currently or were last made to local, State, or federal governmental units.</text> </level> </level> </level> <level label="b"> <text>This section applies to all procurements by units except:</text> <level label="1"> <text>a procurement for which the price will be established by competitive sealed bidding; or</text> </level> <level label="2"> <text>a lease of real property or an amendment to a lease of real property.</text> </level> </level> <level label="c"> <text>An offeror or contractor shall submit cost and price information for a procurement contract, change order, or contract modification if the price:</text> <level label="1"> <text>is expected to exceed $100,000 or a smaller amount set by the procurement officer; and</text> </level> <level label="2"> <text>is not:</text> <level label="i"> <text>based on adequate price competition;</text> </level> <level label="ii"> <text>based on the established catalog or market price of commercial items sold in substantial quantities to a significant number of buyers; or</text> </level> <level label="iii"> <text>set by law.</text> </level> </level> </level> <level label="d"> <text>An offeror or contractor required to submit cost and price information shall certify that, to the best knowledge of the offeror or contractor, the information is:</text> <level label="1"> <text>accurate;</text> </level> <level label="2"> <text>complete; and</text> </level> <level label="3"> <text>current as of a specific date that:</text> <level label="i"> <text>has been determined by the procurement officer and the offeror or contractor; and</text> </level> <level label="ii"> <text>occurs before the conclusion of price discussions.</text> </level> </level> </level> <level label="e"> <text>Each procurement contract, change order, or contract modification for which a cost and price certificate is required shall contain a provision that the price, including profit or fee, shall be reduced to exclude any significant price increases in a component that result because the contractor provided cost or price information that, as of the date specified under subsection (d)(3) of this section, was inaccurate, incomplete, or not current.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-222" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <text>For a State procurement contract for $10,000 or more, except as provided in subsection (c) of this section, at the time a bid or proposal for any State procurement contract is submitted, the bidder or offeror shall certify to the procurement officer that:</text> <level label="1"> <text>the bidder or offeror has paid all taxes, unemployment insurance contributions, reimbursement payments, and interest not barred by limitations and payable to the Comptroller, the Department of Assessments and Taxation, or the Maryland Department of Labor or has provided for payment in a manner satisfactory to the unit responsible for collection; and</text> </level> <level label="2"> <text>if the bidder or offeror is a vendor of tangible personal property, the bidder or offeror possesses a valid sales and use tax license under Title 11, Subtitle 7 of the Tax – General Article.</text> </level> </level> <level label="b"> <text>Before a unit awards any procurement contract for $100,000 or more, the unit shall verify through the Office of the Comptroller:</text> <level label="1"> <text>that all taxes, unemployment insurance contributions, reimbursement payments, and interest not barred by limitations and payable by the contractor to the Comptroller, the Department of Assessments and Taxation, and the Secretary of Labor are paid or that payment has been provided for in a manner satisfactory to the unit responsible for collection; and</text> </level> <level label="2"> <text>if the contractor is a vendor of tangible personal property, that the contractor possesses a valid sales and use tax license under Title 11, Subtitle 7 of the Tax – General Article.</text> </level> </level> <level label="c"> <text>The Board may waive the requirements of this section if the Board determines that:</text> <level label="1"> <text>the procurement is essential or in the best interests of the State; and</text> </level> <level label="2"> <text>there is no other known source for the procurement at a reasonable cost.</text> </level> </level> <level label="d"> <text>In any solicitation, a unit shall provide notice of the requirements of this section.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-223" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <text>Each procurement contract shall include the following clause:</text> <text>“The contractor, architect, or engineer warrants that it has not employed or retained any person, partnership, corporation, or other entity, other than a bona fide employee, bona fide agent, bona fide salesperson, or commercial selling agency working for the contractor, architect, or engineer, to solicit or secure this agreement, and that it has not paid or agreed to pay any person, partnership, corporation, or other entity, other than a bona fide employee, bona fide salesperson, or commercial selling agency, any fee or other consideration contingent on the making of this agreement.”</text> </level> <level label="b"> <level label="1"> <level label="i"> <text>Except as provided in subparagraph (ii) of this paragraph, unless a person is a bona fide employee, bona fide salesperson, or commercial selling agency working for the contractor, the person may not offer or agree to solicit or secure a procurement contract under this subtitle if the person’s fee is contingent on, or results from, the making of the procurement contract.</text> </level> <level label="ii"> <text>A regulated lobbyist, who is described in § 5–702(a)(1), (2), or (3) of the General Provisions Article, may not offer or agree to solicit or secure a procurement contract under this subtitle if the lobbyist’s fee is contingent on, or results from, the making of the procurement contract.</text> </level> </level> <level label="2"> <level label="i"> <text>Except as provided in subparagraph (ii) of this paragraph, a contractor or a person who provides architectural or engineering services may not offer to pay a fee or other consideration that is contingent on the making of a procurement contract under this article.</text> </level> <level label="ii"> <text>This paragraph does not apply to a payment to a bona fide employee, bona fide salesperson, or commercial selling agency working for the contractor or person providing architectural or engineering services.</text> </level> </level> <level label="3"> <text>An employee of a unit may not solicit or secure or offer to solicit or secure a procurement contract under this article between the unit and any other person for which the employee is paid or is to be paid a fee or other consideration that is contingent on the making of the procurement contract.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-224" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Children of current or former recipients” has the meaning stated in § 5–304 of the Human Services Article.</text> </level> <level label="3"> <text>“Department” means the Department of Human Services.</text> </level> <level label="4"> <text>“Eligible contract” means a procurement contract designated by the Board as appropriate for the execution of a hiring agreement.</text> </level> <level label="5"> <text>“FIP” means the Family Investment Program established under Title 5, Subtitle 3 of the Human Services Article.</text> </level> <level label="6"> <text>“Former recipient” has the meaning stated in § 5–304 of the Human Services Article.</text> </level> <level label="7"> <text>“Foster youth” has the meaning stated in § 5–304 of the Human Services Article.</text> </level> <level label="8"> <text>“Hiring agreement” means an agreement entered into by the Department or a local department and an entity doing business with the State under which the Department or the local department and the entity agree to work cooperatively in endeavoring to identify and hire current and former FIP recipients, children of current or former recipients, foster youth, and obligors to fill job openings of the entity.</text> </level> <level label="9"> <text>“Local department” means a local department of social services in a county or in Baltimore City created or continued under § 3–201(a) of the Human Services Article.</text> </level> <level label="10"> <text>“Obligor” has the meaning stated in § 10–101 of the Family Law Article.</text> </level> </level> <level label="b"> <text>On or before October 1, 1998, the Board, in consultation with the Department, shall designate the types of procurement contracts that are eligible contracts.</text> </level> <level label="c"> <level label="1"> <text>On or before December 1, 1998, the Department shall develop a model hiring agreement form that shall be completed by the Department or a local department and an entity in conjunction with the award of an eligible contract.</text> </level> <level label="2"> <text>The model hiring agreement form shall include the following provisions:</text> <level label="i"> <text>the entity will:</text> <level label="1"> <text>inform the Department or the local department, as appropriate, of all of the entity’s job openings;</text> </level> <level label="2"> <text>declare the Department or the local department, as appropriate, its “first source” in identifying and hiring candidates to fill those job openings;</text> </level> <level label="3"> <text>work cooperatively with the Department or the local department, as appropriate, to develop any necessary training programs that will enable current and former FIP recipients, children of current or former recipients, foster youth, and obligors in qualifying for and securing the positions;</text> </level> <level label="4"> <text>give first preference and first consideration to the extent permitted by law and any existing labor agreements to candidates referred to the entity by the Department or the local department, as appropriate;</text> </level> <level label="5"> <text>agree to give candidates referred to the entity by the Department or the local department, as appropriate, priority in the filling of a job opening if the candidate meets the qualifications of the position;</text> </level> <level label="6"> <text>provide the Department or the local department, as appropriate, with information on the disposition of all referrals made by the Department or the local department, as appropriate, including an explanation of why any such candidate was not hired or considered qualified;</text> </level> <level label="7"> <text>provide the Department or the local department, as appropriate, with information regarding the progress and employment status of those candidates referred by the Department or the local department, as appropriate, that the entity hired; and</text> </level> <level label="8"> <text>designate a specific individual that the Department or the local department, as appropriate, may contact in regard to the provisions of the hiring agreement; and</text> </level> </level> <level label="ii"> <text>the Department or the local department, as appropriate, will assign an account representative to the entity who will:</text> <level label="1"> <text>receive and process all of the entity’s job notifications;</text> </level> <level label="2"> <text>refer only screened and qualified candidates to the entity;</text> </level> <level label="3"> <text>assist in the development of any mutually agreed upon training programs, internship programs, or both that will better prepare current and former FIP recipients, children of current or former recipients, foster youth, and obligors for employment with the entity;</text> </level> <level label="4"> <text>arrange follow–up and post–hire transitional/supportive services, such as child care and transportation, as necessary and appropriate; and</text> </level> <level label="5"> <text>review and evaluate the effectiveness of the hiring agreement with the entity and make modifications in the agreement as necessary and appropriate.</text> </level> </level> </level> </level> <level label="d"> <text>Each year, the Department and any local departments that have entered into hiring agreements shall submit a report to the Board and, subject to § 2–1257 of the State Government Article, the General Assembly on:</text> <level label="1"> <text>the number of hiring agreements executed;</text> </level> <level label="2"> <text>the number of current and former FIP recipients, children of current or former recipients, foster youth, and obligors hired by an entity with which a hiring agreement was executed; and</text> </level> <level label="3"> <text>the effectiveness of each hiring agreement in obtaining employment for current and former FIP recipients, children of current or former recipients, foster youth, and obligors.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-225" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Payment security” has the meaning stated in § 17-101 of this article.</text> </level> <level label="3"> <text>“Performance security” has the meaning stated in § 17-101 of this article.</text> </level> </level> <level label="b"> <level label="1"> <text>If a contractor has furnished 100% payment security and 100% performance security in accordance with Title 17, Subtitle 1 of this article under a State procurement contract for construction, the percentage specified in the contract for retainage may not exceed 5% of the total amount.</text> </level> <level label="2"> <text>In addition to retainage, a primary procurement unit and the Maryland Transportation Authority may withhold from payments otherwise due a contractor any amount that the unit reasonably believes necessary to protect the State’s interest.</text> </level> <level label="3"> <text>Retainage withheld by a primary procurement unit and the Maryland Transportation Authority may be deposited in an interest-bearing escrow account in accordance with § 15-108 of this article.</text> </level> </level> <level label="c"> <level label="1"> <text>A contractor may not retain a percentage of payments due a subcontractor that exceeds the percentage of payments retained by the primary procurement unit or the Maryland Transportation Authority.</text> </level> <level label="2"> <text>Paragraph (1) of this subsection may not be construed to prohibit a contractor from withholding any amount in addition to retainage if the contractor determines that a subcontractor’s performance under the subcontract provides reasonable grounds for withholding the additional amount.</text> </level> </level> <level label="d"> <level label="1"> <text>A subcontractor may not retain a percentage of payments due a lower tier subcontractor that exceeds the percentage of payments retained from the subcontractor.</text> </level> <level label="2"> <text>Paragraph (1) of this subsection may not be construed to prohibit a subcontractor from withholding any amount in addition to retainage if the subcontractor determines that a lower tier subcontractor’s performance under the subcontract provides reasonable grounds for withholding the additional amount.</text> </level> </level> <level label="e"> <text>If retainage has been placed in escrow under § 15-108 of this article, each payment of retainage shall include a pro rata portion of interest earned.</text> </level> <level label="f"> <text>This section may not be construed to limit the application of the provisions of Title 17, Subtitle 1 of this article.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-226" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <text>Unless otherwise prohibited by law, a primary procurement unit may conduct procurement, including the solicitation of bids or proposals, evaluation, award, execution, and administration of a contract, by electronic means as provided in the Uniform Electronic Transactions Act in Title 21 of the Commercial Law Article.</text> </level> <level label="b"> <text>Bidding or submitting a proposal on a procurement contract by electronic means shall constitute consent by the bidder or proposer to conduct by electronic means all elements of the procurement of that contract which the unit agrees to conduct by electronic means.</text> </level> <level label="c"> <level label="1"> <level label="i"> <text>Except as provided in paragraph (2) of this subsection, a unit utilizing electronic means to conduct procurement or a private contractor furnishing to the State electronic means for conducting procurement may charge a reasonable fee, on approval by the Chief Procurement Officer, to the bidder, proposer, or each contract awardee for the use of the electronic means.</text> </level> <level label="ii"> <text>Any fees collected under subparagraph (i) of this paragraph that are due to the State shall be deposited in the Operations Revenue Fund established under § 13–102.1(c) of this subtitle.</text> </level> </level> <level label="2"> <text>Unless approved by the Board of Public Works, a fee may not be charged under this subsection.</text> </level> </level> <level label="d"> <text>The terms and conditions of a procurement conducted under this section shall comply with the Uniform Electronic Transactions Act in Title 21 of the Commercial Law Article.</text> <text>SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 1, 2025.</text> <text>Approved by the Governor, April 8, 2025.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-227" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <text>If a prime contractor requires a subcontractor to provide a bid, performance, or payment bond on a procurement contract for services, supplies, or construction related services with the State, the prime contractor may not require bid, performance, or payment bonding from the subcontractor that is more stringent than the bonding requirements in §§ 13–207 and 13–216 of this subtitle and § 17–104 of this article.</text> </level> <level label="b"> <text>A bid, performance, or payment bond that is provided by a subcontractor under subsection (a) of this section shall be accepted by the prime contractor if the bond would be accepted by the State and provided by:</text> <level label="1"> <text>a surety company authorized to do business in the State; or</text> </level> <level label="2"> <text>the Maryland Small Business Development Financing Authority established in Title 5, Subtitle 5 of the Economic Development Article.</text> </level> </level> <level label="c"> <text>In a solicitation or pre–bid conference for a procurement contract for services, supplies, or construction related services with the State, the procurement agency shall provide notice to all bidders that bid security shall be:</text> <level label="1"> <text>a bond provided by a surety company authorized to do business in this State;</text> </level> <level label="2"> <text>a bond provided by an individual surety that meets the requirements of §§ 13–207 and 13–216 of this subtitle and § 17–104 of this article;</text> </level> <level label="3"> <text>cash; or</text> </level> <level label="4"> <text>another form of security:</text> <level label="i"> <text>authorized by federal or State regulation; or</text> </level> <level label="ii"> <text>that is satisfactory to the unit awarding the contract.</text> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-228" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Aggregator” means a person that:</text> <level label="i"> <text>provides or contracts for environmental outcomes; or</text> </level> <level label="ii"> <text>provides or raises capital to finance delivery of environmental outcomes.</text> </level> </level> <level label="3"> <text>“Environmental outcome” means a commodity that is modeled or directly measured as a single, quantifiable, and certified unit of improvement to the environment, including a nutrient or carbon benefit.</text> </level> <level label="4"> <text>“Environmental outcomes project” means a project designed to secure environmental outcomes.</text> </level> <level label="5"> <text>“Evaluator” means a person other than an aggregator that determines whether environmental outcomes have been achieved based on defined performance measures.</text> </level> <level label="6"> <text>“Outcome payment” means the money paid when a pay–for–success contract performance measure is met.</text> </level> <level label="7"> <text>“Quantification plan” means a plan in which an aggregator describes:</text> <level label="i"> <text>the method that will be used to measure or model environmental outcomes and co–benefits under a pay–for–success contract;</text> </level> <level label="ii"> <text>the compliance monitoring that will occur to ensure that the actions proposed in the pay–for–success contract are taken and maintained over the life of the project;</text> </level> <level label="iii"> <text>verification steps that will be carried out by the State to confirm model results or accurate measurement of environmental outcomes; and</text> </level> <level label="iv"> <text>the timeline for proposed payments under the pay–for–success contract.</text> </level> </level> </level> <level label="b"> <text>The General Assembly finds and declares that:</text> <level label="1"> <text>pay–for–success contracting shifts the risk of performance to the contractor because government payment is made only on achievement of outcomes;</text> </level> <level label="2"> <text>social and environmental impact investment is growing dramatically, and investors are seeking ways to finance and execute pay–for–success contracts in the State to expand the success of Chesapeake Bay restoration efforts and achieve other public outcomes; and</text> </level> <level label="3"> <text>it is in the best interest of the State to include pay–for–success contracting as a contracting option, particularly for units responsible for land conservation and environmental protection, enhancement, and restoration.</text> </level> </level> <level label="c"> <text>A unit may enter into a pay–for–success contract only if the procurement officer of the unit determines that:</text> <level label="1"> <text>the contract will produce estimated financial savings or other quantifiable public benefits for the State; and</text> </level> <level label="2"> <text>a substantial portion of the outcome payment due under the contract will be paid only after specific outcomes have been documented.</text> </level> </level> <level label="d"> <level label="1"> <text>This subsection applies only to contracts by:</text> <level label="i"> <text>the Department of Agriculture;</text> </level> <level label="ii"> <text>the Department of the Environment;</text> </level> <level label="iii"> <text>the Department of Natural Resources;</text> </level> <level label="iv"> <text>the Department of Transportation;</text> </level> <level label="v"> <text>the Maryland Environmental Service; and</text> </level> <level label="vi"> <text>the Department of General Services.</text> </level> </level> <level label="2"> <text>This subsection does not apply to the purchase of nitrogen load reductions with funds from the Clean Water Commerce Account of the Bay Restoration Fund established under § 9–1605.2 of the Environment Article.</text> </level> <level label="3"> <level label="i"> <text>A unit specified in paragraph (1) of this subsection may enter into a pay–for–success contract with an aggregator to purchase:</text> <level label="1"> <text>delivery of an environmental outcomes project; or</text> </level> <level label="2"> <text>already certified environmental outcomes.</text> </level> </level> <level label="ii"> <text>Other State and local entities may participate in a pay–for–success contract under this subsection in accordance with an intergovernmental cooperative purchasing agreement under § 13–110 of this title.</text> </level> </level> <level label="4"> <text>A pay–for–success contract executed under this subsection shall include:</text> <level label="i"> <text>a quantification plan approved by the unit;</text> </level> <level label="ii"> <text>a statement of the environmental outcomes to be procured under the contract and a description of how defined performance measures will demonstrate progress in achieving these outcomes;</text> </level> <level label="iii"> <text>requirements regarding the content and frequency of progress reports regarding the achievement of environmental outcomes;</text> </level> <level label="iv"> <text>a methodology for calculating the amount and timing of outcome payments to an aggregator when the evaluator determines that the aggregator has achieved a defined performance measure;</text> </level> <level label="v"> <text>a statement that the basis of payment is the determination of achievement of environmental outcomes by the evaluator and that payments for those outcomes do not require itemized billing or cost documentation by the aggregator; and</text> </level> <level label="vi"> <text>terms addressing:</text> <level label="1"> <text>compliance with State law;</text> </level> <level label="2"> <text>nondiscrimination in employment;</text> </level> <level label="3"> <text>contractor indemnification;</text> </level> <level label="4"> <text>termination for default; and</text> </level> <level label="5"> <text>the unit’s right to inspect the environmental outcomes project.</text> </level> </level> </level> <level label="5"> <text>A pay–for–success contract executed under this subsection may include provisions regarding:</text> <level label="i"> <text>long–term maintenance and monitoring of environmental services, including the establishment of a stewardship fund;</text> </level> <level label="ii"> <text>a requirement that the unit hold contract funds in a reserve account for outcome payments;</text> </level> <level label="iii"> <text>for agriculture services, payment for achievement of baseline water quality requirements for nitrogen, phosphorus, or sediment; or</text> </level> <level label="iv"> <text>terminations prior to the first payment under the contract for the purpose of selling environmental outcomes without penalty to another entity or for any other reason.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>Beginning July 2025 and every 3 years thereafter, the Maryland Environmental Service shall review and evaluate the results of all pay–for–success contracts completed under this section for the previous 3 fiscal years.</text> </level> <level label="2"> <text>The review conducted under paragraph (1) of this subsection shall include:</text> <level label="i"> <text>the cost of each project performed under a contract;</text> </level> <level label="ii"> <text>the length of time taken to complete the project, from the date of notice to proceed until completion;</text> </level> <level label="iii"> <text>the average cost and project duration for each project type; and</text> </level> <level label="iv"> <text>whether each project met the terms of its contract.</text> </level> </level> <level label="3"> <text>Each unit that enters into a pay–for–success contract under this section shall execute an agreement with the Maryland Environmental Service to reimburse the Maryland Environmental Service for each of the unit’s completed contracts the Maryland Environmental Service reviews under this section.</text> </level> <level label="4"> <text>The Maryland Environmental Service shall provide copies of each review conducted under this subsection to:</text> <level label="i"> <text>each unit for which the Maryland Environmental Service reviewed and evaluated a contract; and</text> </level> <level label="ii"> <text>in accordance with § 2–1257 of the State Government Article, the Senate Committee on Education, Energy, and the Environment, the Senate Budget and Taxation Committee, the House Environment and Transportation Committee, and the House Appropriations Committee.</text> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="13-229" title_number="13" title_name="Source Selection -- State Procurement Contracts" subtitle_number="2" subtitle_name="Procedural Requirements"> <level label="a"> <text>Before a unit awards any procurement contract for an amount above $500,000, the recommended awardee may be required to submit a workforce diversity plan to the procurement officer.</text> </level> <level label="b"> <text>Before a unit awards any procurement contract for an amount above $250,000, the recommended awardee may be required to submit a supplier diversity plan to the procurement officer.</text> </level> <level label="c"> <text>The Governor’s Office of Small, Minority, and Women Business Affairs in consultation with the Office of State Procurement shall adopt regulations to carry out this section that include:</text> <level label="1"> <text>suggested content to be included in a workforce or supplier diversity plan; and</text> </level> <level label="2"> <text>guidance for units to comply with the requirements of this section.</text> </level> </level> </section>