# State Finance and Procurement (GSF)

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

### Subtitle 2. Procedural Requirements

#### Section 13-216

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

(b) 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.

(c) If the price of a procurement contract for construction exceeds the small procurement amount specified in Sec. 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.

(d) 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:

  (1) circumstances warrant security; and

  (2) the price of the procurement contract exceeds the small procurement amount specified in Sec. 13-109 of this title.

(e)

  (1) The Board shall adopt regulations to establish separate surety bond forms for procurement officers to use to require security for:

    (i) fixed-price contracts; and

    (ii) multiyear contracts.

  (2) The form for multiyear contracts shall provide for annual and renewable contracts.

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