§ 13–215
Statutes in effect as of October 1, 2026.
Md. Code Ann., State Fin. & Proc. § 13-215 (2026)
Title 13. Source Selection -- State Procurement Contracts
Subtitle 2. Procedural Requirements
§ 13–215LinkCopy Citation
(a)
A unit may not enter into a cost-reimbursement contract unless the procurement officer determines that:
(1)
a cost-reimbursement contract is likely to be less costly to the State than any other type of contract; or
(2)
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.
(b)
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:
(1)
will allow timely development of all necessary cost data in the form required by the specific type of procurement contract under consideration; and
(2)
is adequate to allocate costs in accordance with generally accepted accounting principles.
(c)
A cost-reimbursement contract shall provide that costs, including costs for subcontractors, will be reimbursed only if the costs are allowable and allocable under:
(1)
the procurement contract; or
(2)
the regulations of the Board on cost principles.
(d)
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:
(1)
a cost-reimbursement subcontract; or
(2)
any subcontract involving more than:
(i)
$25,000; or
(ii)
5% of the estimated cost of the procurement contract.