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<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>
