<section article="gsf" article_name="State Finance and Procurement" number="15-101" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="1" subtitle_name="Procurement Contract Administration"> <text>In this subtitle, “invoice” means an invoice that meets the requirements of § 15-102 of this subtitle.</text> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-102" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="1" subtitle_name="Procurement Contract Administration"> <text>A contractor who submits an invoice for a procurement contract shall include in the invoice:</text> <level label="1"> <text>the contractor’s federal employer’s identification number or Social Security number;</text> </level> <level label="2"> <text>the procurement contract or purchase order number or another adequate description of the procurement contract; and</text> </level> <level label="3"> <text>any documentation required by regulation or the procurement contract.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-103" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="1" subtitle_name="Procurement Contract Administration"> <level label="a"> <text>It is the policy of the State to make a payment under a procurement contract:</text> <level label="1"> <text>within 30 days after the day on which the payment becomes due and the unit receives a proper invoice; or</text> </level> <level label="2"> <text>for a small business reserve contract, within 15 days after the day on which the payment becomes due and the unit receives a proper invoice.</text> </level> </level> <level label="b"> <text>Interest shall accrue in accordance with § 15–104 of this subtitle.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-104" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="1" subtitle_name="Procurement Contract Administration"> <level label="a"> <text>Except as provided in § 15–105 of this subtitle, interest shall accrue at the rate of 9% per annum on any amount that:</text> <level label="1"> <text>is due and payable by law and under the written procurement contract; and</text> </level> <level label="2"> <text>remains unpaid more than 37 days after a unit receives an invoice.</text> </level> </level> <level label="b"> <text>Interest shall accrue beginning on the 31st day after:</text> <level label="1"> <text>the day on which payment becomes due under a procurement contract; or</text> </level> <level label="2"> <text>if later, the day on which the unit receives an invoice.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-105" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="1" subtitle_name="Procurement Contract Administration"> <text>A unit is not liable under § 15-104 of this subtitle for interest:</text> <level label="1"> <text>unless within 30 days after the date on the State’s check for the amount on which the interest accrued, the contractor submits an invoice for the interest;</text> </level> <level label="2"> <text>if a contract claim has been filed under Subtitle 2 of this title;</text> </level> <level label="3"> <text>accruing more than 1 year after the 31st day after the unit receives an invoice; or</text> </level> <level label="4"> <text>on an amount that represents unpaid interest.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-106" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="1" subtitle_name="Procurement Contract Administration"> <text>The Governor shall resolve a dispute among units as to which unit is responsible for a delayed payment under a procurement contract.</text> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-107" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="1" subtitle_name="Procurement Contract Administration"> <text>After a unit pays a semifinal estimate on a procurement contract, the unit shall place any retainage remaining in its possession in an interest bearing escrow account.</text> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-108" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="1" subtitle_name="Procurement Contract Administration"> <level label="a"> <text>This section does not apply to any procurement contract funded with tax-exempt financing.</text> </level> <level label="b"> <level label="1"> <text>Subject to the requirements of this section, a contractor under a procurement contract that a unit awards for construction is entitled to have retainage under the procurement contract placed in an escrow account if the contractor:</text> <level label="i"> <text>elects that procedure in the procurement contract in the space provided for that election; and</text> </level> <level label="ii"> <text>submits to the unit an escrow agreement that meets the requirements of subsection (c) of this section.</text> </level> </level> <level label="2"> <text>The procurement contract shall identify the escrow agent.</text> </level> </level> <level label="c"> <text>The escrow agreement shall:</text> <level label="1"> <text>be on a form that the unit provides;</text> </level> <level label="2"> <text>include the complete address of both the escrow agent and the surety;</text> </level> <level label="3"> <text>authorize the unit to pay retainage to the escrow agent; and</text> </level> <level label="4"> <text>be signed by:</text> <level label="i"> <text>the contractor;</text> </level> <level label="ii"> <text>the surety for the contractor; and</text> </level> <level label="iii"> <text>the escrow agent.</text> </level> </level> </level> <level label="d"> <text>On compliance with the requirements of subsection (b) of this section, the unit shall pay the retainage to the escrow agent unless:</text> <level label="1"> <text>federal money is involved and application of this section would jeopardize timely recovery of that federal money; or</text> </level> <level label="2"> <text>retainage is withheld for:</text> <level label="i"> <text>lack of progress on the part of the contractor; or</text> </level> <level label="ii"> <text>other violations by the contractor.</text> </level> </level> </level> <level label="e"> <text>In accordance with the escrow agreement, a contractor may require an escrow agent:</text> <level label="1"> <text>to invest the retainage placed in the escrow account; and</text> </level> <level label="2"> <text>to the extent the contractor is entitled to retainage under subsection (f)(2)(ii) of this section, to pay the earnings on the investment to the contractor.</text> </level> </level> <level label="f"> <level label="1"> <text>Retainage may be released to the contractor only as directed by the unit.</text> </level> <level label="2"> <text>At the time of final payment, the unit shall direct the escrow agent to settle the escrow account by distributing money in the escrow account in the following order:</text> <level label="i"> <text>to the unit for any claim it may have against the contractor under the procurement contract;</text> </level> <level label="ii"> <text>unless waived by the Board, to the Comptroller for any claim exceeding $50 against the contractor by the State, a unit, or a State controlled governmental entity; and</text> </level> <level label="iii"> <text>to the contractor.</text> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-109" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="1" subtitle_name="Procurement Contract Administration"> <level label="a"> <text>At reasonable times an inspection may be conducted of a plant, place of business, or job site of:</text> <level label="1"> <text>a bidder or offeror seeking a procurement contract;</text> </level> <level label="2"> <text>any contractor under a procurement contract;</text> </level> <level label="3"> <text>a subcontractor under a procurement contract; or</text> </level> <level label="4"> <text>a prospective subcontractor of:</text> <level label="i"> <text>a bidder or offeror seeking a procurement contract; or</text> </level> <level label="ii"> <text>a contractor under a procurement contract.</text> </level> </level> </level> <level label="b"> <text>An inspection under this section may be conducted by:</text> <level label="1"> <text>the Department of Legislative Services;</text> </level> <level label="2"> <text>the unit engaged in procurement; or</text> </level> <level label="3"> <text>as authorized by law, any other unit.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-110" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="1" subtitle_name="Procurement Contract Administration"> <level label="a"> <text>The following persons are subject to an audit of books, accounts, or records:</text> <level label="1"> <text>before the expiration of the period of retention under subsection (c) of this section, a person who submits cost and price information under § 13-220 of this article, if the books, accounts, or records being audited are reasonably connected with the cost and price information;</text> </level> <level label="2"> <text>a contractor or subcontractor under a procurement contract if, from an audit of a cost-type contract, the unit has reason to believe that costs have been inappropriately assigned to the cost-type contract from a fixed-price contract; and</text> </level> <level label="3"> <text>a contractor or subcontractor under a procurement contract that:</text> <level label="i"> <text>was awarded by a method other than competitive sealed bids; and</text> </level> <level label="ii"> <text>is not a firm fixed-price procurement contract.</text> </level> </level> </level> <level label="b"> <text>An audit under this section may be conducted by:</text> <level label="1"> <text>the Department of Legislative Services;</text> </level> <level label="2"> <text>a unit engaged in procurement; or</text> </level> <level label="3"> <text>as authorized by law, any other unit.</text> </level> </level> <level label="c"> <text>A person subject to an audit under subsection (a) of this section shall keep books, accounts, and records for:</text> <level label="1"> <text>at least 3 years after the day on which the person receives final payment under a procurement contract or a subcontract; or</text> </level> <level label="2"> <text>if longer, the period required under the procurement contract.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-111" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="1" subtitle_name="Procurement Contract Administration"> <level label="a"> <text>Within 60 days after the end of each fiscal year, each primary procurement unit shall submit to the Chief Procurement Officer a report on each procurement contract that was awarded during the preceding fiscal year, whether the procurement was conducted by the primary procurement unit or subject to review by the primary procurement unit, and:</text> <level label="1"> <text>was exempt from the notice requirements of § 13–103(c) of this article because the procurement officer reasonably expected that the procurement contract would be performed entirely outside this State and the District of Columbia;</text> </level> <level label="2"> <text>cost more than the small procurement amount specified in § 13–109 of this article and was awarded for the procurement of services, construction related services, architectural services, or engineering services; or</text> </level> <level label="3"> <text>was awarded on the basis of:</text> <level label="i"> <text>§ 13–107 of this article (“Sole source procurement”);</text> </level> <level label="ii"> <text>§ 13–108(a) of this article (“Emergency procurement”); or</text> </level> <level label="iii"> <text>§ 13–108(c) of this article (“Expedited procurement”).</text> </level> </level> </level> <level label="b"> <level label="1"> <text>A report required under subsection (a)(2) or (3) of this section shall include:</text> <level label="i"> <text>the name of each contractor;</text> </level> <level label="ii"> <text>the type and cost of the procurement contract; and</text> </level> <level label="iii"> <text>a description of the procurement.</text> </level> </level> <level label="2"> <text>A report required under subsection (a)(3) of this section shall include:</text> <level label="i"> <text>a description of the basis for the award;</text> </level> <level label="ii"> <text>the identity of the department or agency that awarded the contract;</text> </level> <level label="iii"> <text>the identity of any agency official required to authorize the contract for award;</text> </level> <level label="iv"> <text>the award date of the procurement contract and the final date of the contract term;</text> </level> <level label="v"> <text>the date the contract award was posted to eMaryland Marketplace; and</text> </level> <level label="vi"> <text>for procurements awarded under § 13–108(b) of this article (“Emergency procurement”):</text> <level label="1"> <text>the number of days between the agency declaration of an emergency procurement and the contract award date;</text> </level> <level label="2"> <text>the date of the emergency declaration for each procurement; and</text> </level> <level label="3"> <text>for an award that must be reported to the Board, the date the award was reported to the Board.</text> </level> </level> </level> </level> <level label="c"> <text>Within 90 days after the end of each fiscal year, the Chief Procurement Officer shall submit to the Governor, the Legislative Policy Committee, the Senate Budget and Taxation Committee, the Senate Committee on Education, Energy, and the Environment, the House Appropriations Committee, the House Health and Government Operations Committee, and the Joint Audit and Evaluation Committee a consolidated report that includes each report required under subsection (a) of this section.</text> </level> <level label="d"> <text>Within 90 days after the end of each fiscal year, the Department of General Services shall submit to the Board and the General Assembly a report on each class of procurement for which the procedure for noncompetitive negotiated procurement has been approved under § 13–106 of this article.</text> </level> <level label="e"> <text>A report to the General Assembly or a committee of the General Assembly under this section is subject to § 2–1257 of the State Government Article.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-112" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="1" subtitle_name="Procurement Contract Administration"> <level label="a"> <level label="1"> <level label="i"> <text>Except as provided in subparagraph (ii) of this paragraph, this section applies to State procurement contracts for:</text> <level label="1"> <text>construction;</text> </level> <level label="2"> <text>information processing equipment, cloud computing services, and associated services; and</text> </level> <level label="3"> <text>in accordance with Title 3.5, Subtitle 3 of this article, information technology system and cybersecurity upgrades and modernization.</text> </level> </level> <level label="ii"> <text>This section does not apply to State procurement contracts for public school construction or public school capital improvements.</text> </level> </level> <level label="2"> <text>For purposes of this section, a written acceptance letter for a State Highway Administration or Maryland Aviation Administration procurement contract for construction shall have the same force and effect as a change order until the State Highway Administration or Maryland Aviation Administration issues a written change order.</text> </level> </level> <level label="b"> <level label="1"> <text>Except as provided in paragraphs (2) and (3) of this subsection, a unit may not require a prime contractor and a prime contractor may not require a subcontractor to begin change order work under a contract until the procurement officer for the unit issues a written change order that specifies whether the work is to proceed, in compliance with any changes in State law or regulation or with the terms of the contract, on:</text> <level label="i"> <text>an agreed–to price which may include a preestablished catalog or unit prices based on local prevailing wage rates and equipment and material costs for each task required for the change order as included in the bid documents at the time of bid;</text> </level> <level label="ii"> <text>a force account;</text> </level> <level label="iii"> <text>a construction change directive; or</text> </level> <level label="iv"> <text>a time and materials basis.</text> </level> </level> <level label="2"> <text>If a procurement officer and a prime contractor do not agree that work is included within the original scope and terms of a contract, nothing in this section:</text> <level label="i"> <text>prohibits a procurement officer from issuing an order to a prime contractor to perform work or to furnish labor or materials determined by the procurement officer to be required by a contract between a unit and the prime contractor;</text> </level> <level label="ii"> <text>authorizes a refusal to perform work or to furnish labor or materials that a procurement officer has ordered the prime contractor to perform or to furnish because the procurement officer has determined that the work or labor is or the materials are required by a contract between a unit and the prime contractor; or</text> </level> <level label="iii"> <text>prejudices or impairs the right of a prime contractor to submit a claim or dispute to a procurement officer, in accordance with applicable law and the contract, seeking additional compensation for complying with an order of the procurement officer to perform work or to furnish labor or materials determined by the procurement officer to be required by a contract between the prime contractor and a unit.</text> </level> </level> <level label="3"> <level label="i"> <text>If a unit is to pay for a contract or a part of a contract using a unit price methodology, a change order may not be required for work to continue and be completed beyond the estimated quantities in the contract.</text> </level> <level label="ii"> <text>After work is completed, a unit shall:</text> <level label="1"> <text>determine the actual quantity used to complete the contract; and</text> </level> <level label="2"> <text>if necessary, issue a final adjustment change order to the contractor.</text> </level> </level> </level> </level> <level label="c"> <text>If the amount to be paid under an approved change order does not exceed $50,000, a unit shall pay an invoice for work performed and accepted under the change order as provided for in the contract within 30 days after the unit receives the invoice and in accordance with § 15–103 of this subtitle.</text> </level> <level label="d"> <text>Within 5 days after receipt of a written change order, a prime contractor shall provide a subcontractor with a copy of the approved change order and the amount to be paid to the subcontractor based on the portion of the change order work to be completed by the subcontractor.</text> </level> <level label="e"> <text>The Board shall propose updated regulations as needed that provide for an expedited change order process for change orders valued at more than the small procurement amount specified in § 13–109 of this article.</text> </level> <level label="f"> <level label="1"> <text>On or before December 31, 2016, each unit shall issue guidelines for the unit’s change order process.</text> </level> <level label="2"> <text>The guidelines issued under paragraph (1) of this subsection shall be updated and reissued when any changes are made to the unit’s change order process.</text> </level> </level> <level label="g"> <text>A provision of this section has effect only to the extent that the provision does not conflict with federal law or regulation.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-113" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="1" subtitle_name="Procurement Contract Administration"> <level label="a"> <text>In this section, “liquidated damages” means damages in an amount designated by the parties to a contract that the injured party is eligible to collect as compensation for a specific breach of the contract.</text> </level> <level label="b"> <level label="1"> <text>On or before January 1, 2024, the Board, in consultation with the Procurement Improvement Council, shall publish a model policy concerning the inclusion and use of liquidated damages provisions in procurement contracts.</text> </level> <level label="2"> <text>The model policy shall include the following elements:</text> <level label="i"> <text>guidance on when to include liquidated damages provisions in procurement contracts, including:</text> <level label="1"> <text>instances where liquidated damages provisions are required by law, including the requirements under §§ 14–303, 17–220, 17–222, and 18–108 of this Division II; and</text> </level> <level label="2"> <text>conditions where liquidated damages provisions are recommended to protect State interests;</text> </level> </level> <level label="ii"> <text>guidance for drafting liquidated damages provisions, including recommended methods for calculating the amount to be assessed;</text> </level> <level label="iii"> <text>a draft plan for responding to deficiencies in a contractor’s performance that may trigger a liquidated damages provision, reviewed by legal counsel for the Board; and</text> </level> <level label="iv"> <text>examples of liquidated damages provisions that may be used in a procurement contract with appropriate modification by the unit.</text> </level> </level> <level label="3"> <text>The Board may propose alternative elements or models based on contract type.</text> </level> <level label="4"> <text>The Board may delegate the duties under this subsection to the Procurement Improvement Council established under § 12–105 of this Division II.</text> </level> </level> <level label="c"> <level label="1"> <text>Subject to paragraph (2) of this subsection, on or before July 1, 2024, a unit shall adopt a written policy concerning the inclusion and use of liquidated damages provisions in procurement contracts by the unit that is substantially similar to the model policy established under subsection (b) of this section.</text> </level> <level label="2"> <level label="i"> <text>A primary procurement unit may establish a policy as required under paragraph (1) of this subsection that is applicable to those procurements that are within the control authority of the primary procurement unit.</text> </level> <level label="ii"> <text>A unit that performs a procurement subject to the control authority of a primary procurement unit shall apply the liquidated damages policy established by the primary procurement unit to any resulting procurement contract.</text> </level> </level> </level> <level label="d"> <text>A unit shall obtain the approval of the head of the unit if the unit decides not to include in a contract a liquidated damages clause specified under § 13–218(a)(4) of this article.</text> </level> <level label="e"> <text>If a unit decides not to pursue liquidated damages when a specified breach associated with a liquidated damages provision has occurred, the unit shall:</text> <level label="1"> <text>obtain the approval of the decision by the head of the unit;</text> </level> <level label="2"> <text>maintain documentation on the reason the unit decided not to pursue liquidated damages; and</text> </level> <level label="3"> <text>provide documentation to the Board and the Joint Audit and Evaluation Committee on the reason that the unit intends not to pursue liquidated damages.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-201" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="2" subtitle_name="Dispute Resolution"> <text>In this subtitle, “Appeals Board” means the Maryland State Board of Contract Appeals.</text> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-202" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="2" subtitle_name="Dispute Resolution"> <text>Except to the extent authorized by regulation by the Board, this subtitle does not apply to a protest concerning any act or omission by a procurement agency under Title 14, Subtitle 6 of this article.</text> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-205" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="2" subtitle_name="Dispute Resolution"> <text>There is a Maryland State Board of Contract Appeals.</text> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-206" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="2" subtitle_name="Dispute Resolution"> <text>The Appeals Board is an independent unit of the Executive Branch of the State government and, except by statute, may not be made a part of another unit of the State government.</text> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-207" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="2" subtitle_name="Dispute Resolution"> <level label="a"> <level label="1"> <text>The Appeals Board consists of 6 members appointed by the Governor with the advice and consent of the Senate.</text> </level> <level label="2"> <text>An appeal before the Appeals Board shall be heard by a panel of not more than 3 members designated by the Chairman.</text> </level> </level> <level label="b"> <text>Each member of the Appeals Board shall:</text> <level label="1"> <text>be qualified to serve in a quasi–judicial capacity; and</text> </level> <level label="2"> <text>have a thorough knowledge of procurement practices and processes.</text> </level> </level> <level label="c"> <text>Before taking office, each appointee to the Appeals Board shall take the oath required by Article I, § 9 of the Maryland Constitution.</text> </level> <level label="d"> <level label="1"> <text>The term of a member is 5 years.</text> </level> <level label="2"> <text>The terms of members are staggered as required by the terms provided for members of the Appeals Board on October 1, 1988.</text> </level> <level label="3"> <text>At the end of a term, a member continues to serve until a successor is appointed and qualifies.</text> </level> <level label="4"> <text>A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.</text> </level> </level> <level label="e"> <text>The Governor may remove a member of the Appeals Board for cause.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-208" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="2" subtitle_name="Dispute Resolution"> <text>From among the members of the Appeals Board, the Governor shall designate a chairman.</text> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-209" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="2" subtitle_name="Dispute Resolution"> <level label="a"> <text>Each member of the Appeals Board shall devote full time to the duties of office.</text> </level> <level label="b"> <text>Each member of the Appeals Board is entitled to:</text> <level label="1"> <text>compensation in accordance with the State budget; and</text> </level> <level label="2"> <text>reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.</text> </level> </level> <level label="c"> <level label="1"> <text>Subject to paragraphs (2) and (3) of this subsection, the Appeals Board may employ a staff in accordance with the State budget.</text> </level> <level label="2"> <text>The Appeals Board shall have at least three more positions than the number of positions authorized in fiscal year 2022.</text> </level> <level label="3"> <level label="i"> <text>Subject to subparagraph (ii) of this paragraph, the Appeals Board shall employ at least three law clerks.</text> </level> <level label="ii"> <text>The Appeals Board shall employ:</text> <level label="1"> <text>at least one law clerk who is a graduate of the University of Maryland School of Law;</text> </level> <level label="2"> <text>at least one law clerk who is a graduate of the University of Baltimore School of Law; and</text> </level> <level label="3"> <text>at least one law clerk who is a graduate of Howard University School of Law.</text> </level> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-210" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="2" subtitle_name="Dispute Resolution"> <text>In accordance with Title 10, Subtitle 1 of the State Government Article, the Appeals Board shall adopt regulations that provide for informal, expeditious, and inexpensive resolution of appeals before the Appeals Board.</text> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-211" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="2" subtitle_name="Dispute Resolution"> <level label="a"> <text>The Appeals Board shall have jurisdiction to hear and decide all appeals arising from the final action of a unit:</text> <level label="1"> <text>on a protest relating to the formation of a procurement contract, including a violation of § 13–212.1 of this article; or</text> </level> <level label="2"> <text>except for a contract claim relating to a lease of real property, on a contract claim by a contractor or a unit concerning:</text> <level label="i"> <text>breach;</text> </level> <level label="ii"> <text>performance;</text> </level> <level label="iii"> <text>modification; or</text> </level> <level label="iv"> <text>termination.</text> </level> </level> </level> <level label="b"> <text>A decision of the Appeals Board is final, subject to any judicial review.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-212" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="2" subtitle_name="Dispute Resolution"> <level label="a"> <text>In connection with a proceeding authorized under this subtitle, the Appeals Board may:</text> <level label="1"> <text>administer oaths;</text> </level> <level label="2"> <text>certify to all official acts; and</text> </level> <level label="3"> <text>at the request of a party to the proceeding:</text> <level label="i"> <text>issue subpoenas for the attendance and testimony of witnesses or the production of documents; and</text> </level> <level label="ii"> <text>compel the testimony of witnesses.</text> </level> </level> </level> <level label="b"> <text>If a person fails to comply with a subpoena or order compelling testimony under this section, on petition of the Appeals Board, a court of competent jurisdiction may pass an order directing compliance with the subpoena or compelling testimony.</text> </level> <level label="c"> <level label="1"> <text>A person who, under oath, willfully makes a false statement about a matter before the Appeals Board is guilty of perjury.</text> </level> <level label="2"> <text>A person who causes another person under oath to make a false statement about a matter before the Appeals Board is guilty of subornation of perjury.</text> </level> <level label="3"> <text>A person who commits perjury or subornation of perjury under this section is subject to the penalty provided in §§ 9-101 and 9-102 of the Criminal Law Article.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-215" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="2" subtitle_name="Dispute Resolution"> <level label="a"> <text>In this Part III of this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Contract claim” means a claim that relates to a procurement contract.</text> </level> <level label="2"> <text>“Contract claim” includes a claim about the performance, breach, modification, or termination of the procurement contract.</text> </level> </level> <level label="c"> <text>“Interested party” means an actual or a prospective bidder, offeror, or contractor that may be aggrieved by the solicitation or award of a contract, or by the protest.</text> </level> <level label="d"> <level label="1"> <text>“Protest” means a complaint that relates to the formation of a procurement contract.</text> </level> <level label="2"> <text>“Protest” includes a complaint about:</text> <level label="i"> <text>the qualifications of a bidder or offeror; or</text> </level> <level label="ii"> <text>the determination of the successful bidder or offeror.</text> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-216" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="2" subtitle_name="Dispute Resolution"> <level label="a"> <text>Title 10, Subtitle 2 of the State Government Article does not apply to the disposition of a protest or a contract claim by:</text> <level label="1"> <text>a primary procurement unit;</text> </level> <level label="2"> <text>a procurement officer; or</text> </level> <level label="3"> <text>a unit.</text> </level> </level> <level label="b"> <text>The Appeals Board shall conduct its proceedings in accordance with Title 10, Subtitle 2 of the State Government Article.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-217" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="2" subtitle_name="Dispute Resolution"> <level label="a"> <level label="1"> <text>A prospective bidder or offeror, a bidder, or an offeror may submit a protest to the procurement officer.</text> </level> <level label="2"> <text>A unit or a person who has been awarded a procurement contract may submit a contract claim to the procurement officer.</text> </level> </level> <level label="b"> <text>Except as provided in § 15-219 of this subtitle, a protest or contract claim shall be submitted within the time required under regulations adopted by the primary procurement unit responsible for the procurement.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-218" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="2" subtitle_name="Dispute Resolution"> <level label="a"> <text>A procurement officer who receives a timely protest shall comply with this section.</text> </level> <level label="b"> <level label="1"> <text>On receipt of a timely protest, a procurement officer:</text> <level label="i"> <text>shall review the substance of the protest;</text> </level> <level label="ii"> <text>may request additional information or substantiation through an appropriate procedure;</text> </level> <level label="iii"> <text>may discuss with interested parties and, if appropriate, may conduct negotiations with the person initiating the protest; and</text> </level> <level label="iv"> <text>shall comply with any applicable regulations.</text> </level> </level> <level label="2"> <text>Unless clearly inappropriate, the procurement officer shall seek the advice of the Office of the Attorney General on any legal issues raised in the protest.</text> </level> </level> <level label="c"> <level label="1"> <text>Subject to subsection (b) of this section and consistent with the State budget and other applicable laws, the procurement officer shall:</text> <level label="i"> <text>resolve the protest;</text> </level> <level label="ii"> <text>wholly or partly deny the protest; or</text> </level> <level label="iii"> <text>wholly or partly grant the relief sought by the person who submitted the protest.</text> </level> </level> <level label="2"> <text>The procurement officer promptly shall send the decision in writing to the reviewing authority.</text> </level> </level> <level label="d"> <text>Unless otherwise provided by regulation, the decision of the procurement officer shall be reviewed promptly by:</text> <level label="1"> <text>the head of the unit or the head’s designee; and</text> </level> <level label="2"> <text>the head of the principal department or other equivalent unit of which the unit is a part or the head’s designee.</text> </level> </level> <level label="e"> <text>The action of the reviewing authority under this subsection shall be the final action of the unit.</text> </level> <level label="f"> <level label="1"> <text>A decision to deny a protest is a final action for the purpose of appeal to the Appeals Board.</text> </level> <level label="2"> <text>The failure to issue a decision or issue a written notice of the anticipated decision date on the protest within 90 days after receipt may be deemed, at the sole option of the protestor, to be a decision to deny the protest.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-219" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="2" subtitle_name="Dispute Resolution"> <level label="a"> <text>Except to the extent a shorter period is prescribed by regulation governing differing site conditions, a contractor shall file a written notice of a claim relating to a procurement contract within 30 days after:</text> <level label="1"> <text>for requests for equitable adjustments, the later of:</text> <level label="i"> <text>a unit denying a request for equitable adjustment; or</text> </level> <level label="ii"> <text>one of the parties notifying the other party in writing that the notifying party determined the discussions reached an impasse in attempting to resolve their disagreement regarding the request; and</text> </level> </level> <level label="2"> <text>for other claims, the basis for the claim is known or should have been known.</text> </level> </level> <level label="b"> <text>Unless extended by the unit, within 90 days after submitting a notice of a contract claim under a procurement contract, a contractor shall submit to the unit a written explanation that states:</text> <level label="1"> <text>the amount of the contract claim;</text> </level> <level label="2"> <text>the facts on which the contract claim is based; and</text> </level> <level label="3"> <text>all relevant data and correspondence that may substantiate the contract claim.</text> </level> </level> <level label="c"> <level label="1"> <text>On receipt of a timely contract claim from a contractor, a procurement officer:</text> <level label="i"> <text>shall review the substance of the contract claim;</text> </level> <level label="ii"> <text>may request additional information or substantiation through an appropriate procedure;</text> </level> <level label="iii"> <text>may conduct negotiations with the contractor initiating the contract claim; and</text> </level> <level label="iv"> <text>shall comply with any applicable regulations.</text> </level> </level> <level label="2"> <text>Unless clearly inappropriate, the procurement officer shall seek the advice of the Office of the Attorney General on any legal issues.</text> </level> </level> <level label="d"> <text>Subject to subsection (c) of this section and consistent with the State budget and other applicable laws, the procurement officer shall:</text> <level label="1"> <text>resolve the contract claim by agreement of the parties;</text> </level> <level label="2"> <text>wholly or partly deny the contract claim; or</text> </level> <level label="3"> <text>wholly or partly grant the relief sought by the claimant.</text> </level> </level> <level label="e"> <level label="1"> <text>Except as provided under paragraph (3) of this subsection, for a contract other than a construction contract, the reviewing authority shall approve, disapprove, or modify the decision of the procurement officer within 180 days after receiving the contract claim or a longer period to which the parties agree.</text> </level> <level label="2"> <text>The action of the reviewing authority under this subsection shall be the final action of the unit.</text> </level> <level label="3"> <level label="i"> <text>The reviewing authority may remand the proceeding with instructions to the procurement officer.</text> </level> <level label="ii"> <text>On remand, in accordance with the reviewing authority’s instructions, the procurement officer shall proceed in accordance with subsection (c) of this section.</text> </level> </level> </level> <level label="f"> <level label="1"> <text>Subject to paragraph (2) of this subsection, for a construction contract, the head of the unit engaged in procurement or the head’s designee shall review the contract claim and the decision of the procurement officer.</text> </level> <level label="2"> <text>If the unit is part of a principal department or other equivalent unit, the Secretary of the principal department or the equivalent official or the Secretary’s designee or the official’s designee shall review the contract claim and the decision of the procurement officer, unless review has been delegated by regulation to the head of the unit.</text> </level> </level> <level label="g"> <text>The person who reviews a contract claim under subsection (f) of this section shall:</text> <level label="1"> <text>investigate the contract claim; and</text> </level> <level label="2"> <text>give the contractor written notice of a resolution of the contract claim:</text> <level label="i"> <text>within 90 days after receiving the contract claim or a longer period to which the parties agree, if the amount of the contract claim is not more than the amount under which the accelerated procedure may be selected before the Appeals Board; or</text> </level> <level label="ii"> <text>for any other contract claim, within 180 days after receiving the contract claim or a longer period to which the parties agree.</text> </level> </level> </level> <level label="h"> <text>Recovery under a contract claim is not allowed for any expense incurred:</text> <level label="1"> <text>more than 60 days before the required submission of a notice of a claim under subsection (a) of this section; or</text> </level> <level label="2"> <text>unless the time for submission of a claim is extended under subsection (b) of this section, more than 150 days before the required submission of the claim.</text> </level> </level> <level label="i"> <level label="1"> <text>If the unit determines that it is responsible for a portion but not all of the amount claimed by the contractor, subject to the terms of the contract, the unit shall pay the undisputed amount.</text> </level> <level label="2"> <text>Payment of the undisputed amount:</text> <level label="i"> <text>is not an admission of the liability of the unit on the claims; and</text> </level> <level label="ii"> <text>does not preclude recovery of the amount paid if it subsequently is determined that the determination of the unit was not correct.</text> </level> </level> </level> <level label="j"> <text>A decision not to pay a contract claim is a final action for the purpose of appeal to the Appeals Board.</text> </level> <level label="k"> <text>Prior to authorizing payment on a claim, the procurement officer shall require the contractor to supplement the claim with a certification by a senior officer or general partner of the contractor or the subcontractor, as applicable, that, to the best of that person’s knowledge and belief:</text> <level label="1"> <text>the claim is made in good faith;</text> </level> <level label="2"> <text>all supporting data is accurate and complete; and</text> </level> <level label="3"> <text>the amount requested accurately reflects the contract claim for which the person believes the procurement agency is liable.</text> </level> </level> <level label="l"> <text>At the time of final payment, the unit shall:</text> <level label="1"> <text>release the retainage due to the contractor; and</text> </level> <level label="2"> <text>pay any interest that:</text> <level label="i"> <text>has accrued on the retainage from the time of payment of the semifinal estimate; and</text> </level> <level label="ii"> <text>is due and payable to the contractor.</text> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-219.1" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="2" subtitle_name="Dispute Resolution"> <level label="a"> <level label="1"> <text>A unit may assert a contract claim against a contractor by sending written notice to the contractor and the procurement officer that states:</text> <level label="i"> <text>the basis for the contract claim;</text> </level> <level label="ii"> <text>to the extent known, the amount, or the performance or other action, requested by the unit in the contract claim; and</text> </level> <level label="iii"> <text>the date by which the contractor is required to provide a written response to the contract claim.</text> </level> </level> <level label="2"> <text>On receipt of a contract claim from a unit, a procurement officer:</text> <level label="i"> <text>shall review the substance of the contract claim;</text> </level> <level label="ii"> <text>may request additional information or substantiation through an appropriate procedure; and</text> </level> <level label="iii"> <text>may discuss or, if appropriate, negotiate the contract claim with the unit or contractor.</text> </level> </level> <level label="3"> <text>The procurement officer shall proceed under subsection (b) of this section if the contractor fails to respond, provides an inadequate response, or denies the contract claim or the relief sought by the unit in whole or in part.</text> </level> </level> <level label="b"> <level label="1"> <text>If the contractor and the unit do not resolve the contract claim, the procurement officer shall prepare a proposed decision on the contract claim, including:</text> <level label="i"> <text>a description of the contract claim;</text> </level> <level label="ii"> <text>references to pertinent contract provisions;</text> </level> <level label="iii"> <text>a statement of factual areas of agreement or disagreement; and</text> </level> <level label="iv"> <text>a statement in the proposed decision wholly or partly granting or denying the relief sought, with supporting rationale.</text> </level> </level> <level label="2"> <text>Unless otherwise provided by regulation, the procurement officer shall submit the contract claim and proposed decision to:</text> <level label="i"> <text>the head of the unit; and</text> </level> <level label="ii"> <text>the head of the principal department or other equivalent unit of which the unit is a part.</text> </level> </level> <level label="3"> <level label="i"> <text>The reviewing authority shall approve, modify, or disapprove the proposed decision.</text> </level> <level label="ii"> <text>In disapproving a proposed decision, the reviewing authority may remand the contract claim with instructions to the procurement officer.</text> </level> <level label="iii"> <text>On remand, the procurement officer shall proceed as required under this subsection and in accordance with the instructions of the reviewing authority.</text> </level> </level> <level label="4"> <text>The decision of the reviewing authority is the final action of the unit.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-220" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="2" subtitle_name="Dispute Resolution"> <level label="a"> <text>Except for a contract claim related to a lease for real property, a bidder or offeror, a prospective bidder or offeror, a unit, or a contractor may appeal the final action of a unit to the Appeals Board.</text> </level> <level label="b"> <text>An appeal under this section shall be filed:</text> <level label="1"> <text>for a protest, within 10 days after receipt of the notice of a final action; and</text> </level> <level label="2"> <text>for a contract claim, within 30 days after receipt of the notice of a final action.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-221" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="2" subtitle_name="Dispute Resolution"> <level label="a"> <text>If a person appeals the decision of a unit about a protest, the Appeals Board shall:</text> <level label="1"> <text>give that case priority over other matters not involving protests before the Appeals Board; and</text> </level> <level label="2"> <text>decide it expeditiously.</text> </level> </level> <level label="b"> <level label="1"> <text>For any appeal, the Appeals Board may require each party to file a brief.</text> </level> <level label="2"> <text>If briefs are required, the Appeals Board shall establish the order and time limits for filing briefs after consultation with both parties.</text> </level> </level> <level label="c"> <text>Except as provided in subsection (d) of this section, in a case before the Appeals Board, a party may obtain discovery about any matter that:</text> <level label="1"> <text>is not privileged; and</text> </level> <level label="2"> <text>is relevant to the subject matter involved in that case.</text> </level> </level> <level label="d"> <text>In an appeal from a decision about a protest, discovery shall be limited to requests for the production of documents unless the Appeals Board determines that extraordinary circumstances require additional limited discovery to avoid substantial unfairness or prejudice.</text> </level> <level label="e"> <text>In an appeal from a decision about a contract claim, unless both parties agree to a longer period, the Appeals Board shall issue its final decision within 180 days after the day on which:</text> <level label="1"> <text>all briefs have been filed; or</text> </level> <level label="2"> <text>if later, the record has been closed.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-221.1" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="2" subtitle_name="Dispute Resolution"> <level label="a"> <text>The Appeals Board may award an interested party the reasonable costs of filing and pursuing a protest, including reasonable attorney’s fees, if:</text> <level label="1"> <text>the interested party appeals the final action of an agency on a protest;</text> </level> <level label="2"> <text>the Appeals Board sustains the appeal; and</text> </level> <level label="3"> <text>the Appeals Board finds that there has been a violation of law or regulation.</text> </level> </level> <level label="b"> <text>The Appeals Board shall adopt regulations to implement this section and to determine what constitutes reasonable costs of filing and pursuing a protest.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-221.2" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="2" subtitle_name="Dispute Resolution"> <level label="a"> <text>This section applies to a claim resulting under a contract.</text> </level> <level label="b"> <text>The Appeals Board may award to a contractor the reasonable costs of filing and pursuing a claim, including reasonable attorney’s fees, if the Appeals Board finds that the conduct of the unit in processing a contract claim is in bad faith, without substantial justification, or in violation of law.</text> </level> <level label="c"> <text>The Appeals Board shall adopt regulations to implement this section.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-222" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="2" subtitle_name="Dispute Resolution"> <level label="a"> <text>Notwithstanding any provision of a procurement contract, the Appeals Board may award interest on money that the Appeals Board determines to be due to the unit or the contractor under a contract claim.</text> </level> <level label="b"> <level label="1"> <text>Subject to paragraph (2) of this subsection, interest may accrue from a day that the Appeals Board determines to be fair and reasonable after hearing all the facts until the day of the decision by the Appeals Board.</text> </level> <level label="2"> <text>Interest may not accrue before the procurement officer receives a contract claim from the unit or the contractor.</text> </level> </level> <level label="c"> <level label="1"> <text>Subject to paragraph (2) of this subsection, an award under a decision by the Appeals Board shall accrue interest until the day on which the award is paid.</text> </level> <level label="2"> <text>If an award is reduced as a result of a judicial review of the decision of the Appeals Board, interest shall be paid only on the reduced award.</text> </level> </level> <level label="d"> <text>The rate of interest under this section shall be the rate of interest on judgments as provided under § 11-107(a) of the Courts Article.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-223" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="2" subtitle_name="Dispute Resolution"> <level label="a"> <level label="1"> <text>A decision of the Appeals Board is subject to judicial review in accordance with Title 10, Subtitle 2 of the State Government Article.</text> </level> <level label="2"> <text>Any party to an Appeals Board decision, including a unit, may appeal a final decision of the Appeals Board to a court of competent jurisdiction.</text> </level> </level> <level label="b"> <text>When a decision about a protest or contract claim has become final and is no longer subject to judicial review, the determination shall be enforceable in the appropriate court.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="15-226" title_number="15" title_name="Procurement Contract Administration and Dispute Resolution" subtitle_number="2" subtitle_name="Dispute Resolution"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Supplier” means a person that has supplied labor or materials to a contractor in the prosecution of work provided for in a State procurement contract.</text> </level> <level label="3"> <text>“Undisputed amount” means an amount owed by a contractor to a subcontractor or supplier for which there is no good faith dispute, including any retainage withheld.</text> </level> </level> <level label="b"> <text>It is the policy of the State that, for work under a State procurement contract:</text> <level label="1"> <text>a contractor shall promptly pay to a subcontractor or supplier any undisputed amount to which the subcontractor or supplier is entitled; and</text> </level> <level label="2"> <text>a subcontractor shall promptly pay to a lower tier subcontractor any undisputed amount to which the lower tier subcontractor is entitled.</text> </level> </level> <level label="c"> <level label="1"> <text>A contractor shall pay a subcontractor or supplier an undisputed amount to which the subcontractor or supplier is entitled within 10 days of receiving a progress or final payment from the State.</text> </level> <level label="2"> <text>If a contractor withholds payment from a subcontractor or supplier, within the time period in which payment normally would be made, the contractor shall:</text> <level label="i"> <text>notify the subcontractor or supplier in writing and state the reason why payment is being withheld; and</text> </level> <level label="ii"> <text>provide a copy of the notice to the procurement officer.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>If a subcontractor or supplier does not receive a payment within the required time period, the subcontractor or supplier may give written notice of the nonpayment to the procurement officer.</text> </level> <level label="2"> <text>The notice shall:</text> <level label="i"> <text>indicate the name of the contractor, the project under which the dispute exists, and the amount in dispute;</text> </level> <level label="ii"> <text>provide an itemized description on which the amount is based; and</text> </level> <level label="iii"> <text>if known, provide an explanation for any dispute concerning payment by the contractor.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>Within 2 business days of receipt of written notice from a subcontractor or supplier, a representative of the unit designated by the procurement officer shall verbally contact the contractor to ascertain whether the amount withheld is an undisputed amount.</text> </level> <level label="2"> <text>If the representative of the unit decides that a part or all of the amount withheld is an undisputed amount, the representative of the unit shall instruct the contractor to pay the subcontractor or supplier the undisputed amount within 3 business days.</text> </level> <level label="3"> <text>The representative of the unit shall verbally communicate to the subcontractor or supplier the results of discussions with the contractor.</text> </level> <level label="4"> <text>If the contractor is instructed to pay the subcontractor or supplier and the subcontractor or supplier is not paid within the time instructed under paragraph (2) of this subsection, the subcontractor or supplier may report the nonpayment in writing to the procurement officer.</text> </level> </level> <level label="f"> <level label="1"> <text>If the subcontractor or supplier notifies the procurement officer under subsection (e)(4) of this section that payment has not been made, the representative of the unit shall schedule a meeting to discuss the dispute with the unit’s project manager, the contractor, and the subcontractor or supplier:</text> <level label="i"> <text>at a time and location designated by the representative of the unit; but</text> </level> <level label="ii"> <text>not later than 10 days after receiving notice from the subcontractor or supplier under subsection (e)(4) of this section.</text> </level> </level> <level label="2"> <text>The purpose of the meeting is to establish why the contractor has not paid the subcontractor or supplier in the required time period.</text> </level> <level label="3"> <text>The representative of the unit shall require the parties to provide at the meeting any information that the representative believes necessary to evaluate the dispute.</text> </level> <level label="4"> <text>If the representative of the unit determines that the contractor is delinquent in payment of an undisputed amount to the subcontractor or supplier, further progress payments to the contractor may be withheld until the subcontractor or supplier is paid.</text> </level> <level label="5"> <text>If payment is not paid to the subcontractor or supplier within 7 days after the representative of the unit determines that the contractor is delinquent in paying the subcontractor or supplier under this subsection, the representative shall schedule a second meeting to address the dispute:</text> <level label="i"> <text>at a time and location designated by the representative of the unit; but</text> </level> <level label="ii"> <text>not later than 5 days after the close of the 7–day period.</text> </level> </level> <level label="6"> <text>If, at the completion of the second meeting, the representative of the unit determines that the contractor continues to be delinquent in payments owed to the subcontractor or supplier, the representative:</text> <level label="i"> <text>shall order that further payments to the contractor not be processed until payment to the subcontractor is verified;</text> </level> <level label="ii"> <text>may order that work under the contract be suspended based on the failure of the contractor to meet obligations under the contract; and</text> </level> <level label="iii"> <text>subject to paragraph (7) of this subsection, may require that the contractor pay a penalty to the subcontractor or supplier, in an amount not exceeding $100 per day, from the date that payment was required under subsection (e)(2) of this section.</text> </level> </level> <level label="7"> <text>A penalty may not be imposed under paragraph (6)(iii) of this subsection for any period that the representative of the unit determines the subcontractor or supplier was not diligent in reporting nonpayment to the procurement officer.</text> </level> </level> <level label="g"> <level label="1"> <text>A contractor, a subcontractor, or a supplier may appeal a decision under subsection (f)(6) of this section to the procurement officer.</text> </level> <level label="2"> <text>The contractor shall comply with the procurement officer’s decision.</text> </level> </level> <level label="h"> <text>An act, failure to act, or decision of a procurement officer or a representative of a unit concerning a payment dispute between a contractor and subcontractor or supplier or between subcontractors under this section may not:</text> <level label="1"> <text>affect the rights of the contracting parties under any other provision of law;</text> </level> <level label="2"> <text>be used as evidence on the merits of a dispute between the unit and the contractor, the contractor and subcontractor, or contractor and supplier in any other proceeding; or</text> </level> <level label="3"> <text>result in liability against or prejudice the rights of the unit.</text> </level> </level> <level label="i"> <text>A decision of a procurement officer or a representative of the unit designated by the procurement officer under this section is not subject to judicial review or the provisions of Part III of this subtitle.</text> </level> <level label="j"> <level label="1"> <text>A unit shall include in each State procurement contract a provision:</text> <level label="i"> <text>governing prompt payment to subcontractors; and</text> </level> <level label="ii"> <text>requiring inclusion of a similar provision in each subcontract at any tier.</text> </level> </level> <level label="2"> <text>The contract provision shall establish procedures and remedies for the resolution of payment disputes similar to the process and remedies prescribed in subsections (c) through (g) of this section.</text> </level> </level> </section>