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<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>
