# State Finance and Procurement (GSF)

## Title 13. Source Selection -- State Procurement Contracts

### Subtitle 2. Procedural Requirements

#### Section 13-207

(a) 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 Sec. 13-109 of this title.

(b)

  (1) A procurement officer shall require a bidder or offeror to provide bid security on a procurement contract for construction if:

    (i) the price is expected to exceed the small procurement amount specified in Sec. 13-109 of this title; or

    (ii) required by federal law or a condition of federal assistance requires the security.

  (2) The amount of bid security required for a procurement contract for construction shall be:

    (i) at least 5% of the bid or price proposal; or

    (ii) if the bid or price proposal states a rate but not a total price, an amount determined by the procurement officer.

(c)

  (1) 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 Sec. 13-109 of this title.

  (2) 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.

  (3) 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.

(d) Bid security under this section shall be:

  (1) a bond provided by a surety company authorized to do business in the State;

  (2) cash; or

  (3) another form of security allowed by regulation.

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Md. Code Ann., State Fin. & Proc. (as displayed at mgaleg.maryland.gov, October 16, 2026)