<section article="gsp" article_name="State Personnel and Pensions" number="13-101" title_number="13" title_name="Contractual Employment and Service Contracts in Executive Branch" subtitle_number="1" subtitle_name="Contractual Employee Defined"> <level label="a"> <text>In this title, “contractual employee” means an individual:</text> <level label="1"> <text>who, under a written agreement, provides temporary personal services to the State for pay;</text> </level> <level label="2"> <text>who is not employed in a budgeted position; and</text> </level> <level label="3"> <text>who has an employer-employee relationship with the State in which the State:</text> <level label="i"> <text>furnishes necessary tools and a place to work;</text> </level> <level label="ii"> <text>has the right to control and direct the details, means, and results of the performance of the services; and</text> </level> <level label="iii"> <text>has the right to discharge the individual from employment.</text> </level> </level> </level> <level label="b"> <text>“Contractual employee” does not include an individual who is employed as:</text> <level label="1"> <text>an employee in the:</text> <level label="i"> <text>skilled service;</text> </level> <level label="ii"> <text>professional service;</text> </level> <level label="iii"> <text>management service; or</text> </level> <level label="iv"> <text>executive service; or</text> </level> </level> <level label="2"> <text>an emergency employee.</text> </level> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="13-201" title_number="13" title_name="Contractual Employment and Service Contracts in Executive Branch" subtitle_number="2" subtitle_name="Contractual Employees Generally"> <level label="a"> <text>This subtitle applies to all units in the Executive Branch of State government, except a unit with an independent personnel system.</text> </level> <level label="b"> <text>The Secretary may exempt specific types of contractual employees from the certification and other requirements of this subtitle.</text> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="13-202" title_number="13" title_name="Contractual Employment and Service Contracts in Executive Branch" subtitle_number="2" subtitle_name="Contractual Employees Generally"> <level label="a"> <text>Except as otherwise authorized under § 13-201(b) of this subtitle, a unit may not execute or renew a contract for the employment of a contractual employee unless the Secretary issues to the unit a certification that:</text> <level label="1"> <text>the employment of the contractual employee is for services that cannot be performed by assignment or hiring of any nontemporary employee;</text> </level> <level label="2"> <text>the rate of pay for the contractual employee is comparable to the rate paid to employees in positions that involve comparable duties, responsibilities, experience, and authority; and</text> </level> <level label="3"> <text>the services to be performed under the contract encompass functions that:</text> <level label="i"> <text>are infrequent;</text> </level> <level label="ii"> <text>are needed for a limited time;</text> </level> <level label="iii"> <text>are unusual; or</text> </level> <level label="iv"> <text>need to be implemented quickly and for which there is no reasonable alternative.</text> </level> </level> </level> <level label="b"> <text>The Secretary may issue a certification for any effective period that does not exceed the period of the contract between the unit and the contractual employee.</text> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="13-203" title_number="13" title_name="Contractual Employment and Service Contracts in Executive Branch" subtitle_number="2" subtitle_name="Contractual Employees Generally"> <level label="a"> <text>The Secretary shall adopt guidelines for the recruitment and selection of contractual employees.</text> </level> <level label="b"> <text>These guidelines shall require a contracting unit:</text> <level label="1"> <text>to make a reasonable effort to publicly solicit applicants for contractual employment;</text> </level> <level label="2"> <text>to make a reasonable effort to screen and select contractual employees by using methods and criteria that are uniformly applied to all applicants for a particular instance of contractual employment; and</text> </level> <level label="3"> <text>to use criteria to select contractual employees that:</text> <level label="i"> <text>are based on the qualifications of the applicant; and</text> </level> <level label="ii"> <text>conform to subsection (c) of this section.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>All personnel actions concerning a contractual employee shall be made in accordance with § 2-302 of this article.</text> </level> <level label="2"> <text>An action may be taken with regard to age, sex, or disability to the extent that age, sex, or disability involves a bona fide occupational qualification.</text> </level> </level> <level label="d"> <text>To the extent feasible, a unit shall conduct the recruitment and selection of contractual employees according to the guidelines adopted under this section.</text> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="13-204" title_number="13" title_name="Contractual Employment and Service Contracts in Executive Branch" subtitle_number="2" subtitle_name="Contractual Employees Generally"> <text>Except as authorized under § 13-303 of this title, the Secretary may not continue certification for any contractual employee if the Secretary determines that the services performed under the contract:</text> <level label="1"> <text>encompass permanent functions;</text> </level> <level label="2"> <text>have no specific expiration date; and</text> </level> <level label="3"> <text>regularly are performed on a basis that is at least equal to 50% of the work responsibility of a full-time permanent employee.</text> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="13-205" title_number="13" title_name="Contractual Employment and Service Contracts in Executive Branch" subtitle_number="2" subtitle_name="Contractual Employees Generally"> <level label="a"> <text>The Secretary periodically shall audit a sample of instances of contractual employment in the various units to determine whether:</text> <level label="1"> <text>justification exists in each instance to continue certification for the contractual employee; and</text> </level> <level label="2"> <text>the guidelines adopted under § 13-203 of this subtitle have been followed.</text> </level> </level> <level label="b"> <level label="1"> <text>If, as a result of an audit, the Secretary determines that services performed by a contractual employee should be performed by a permanent employee, the Secretary shall:</text> <level label="i"> <text>refuse to renew the certification for the contractual employee; and</text> </level> <level label="ii"> <text>recommend that a position for a permanent employee be established.</text> </level> </level> <level label="2"> <text>If, as a result of an audit, the Secretary determines that a unit has not complied with the guidelines adopted under § 13-203 of this subtitle, the Secretary shall:</text> <level label="i"> <text>advise the unit of the nature of the noncompliance; and</text> </level> <level label="ii"> <text>suggest alternate criteria or methods that would have complied with the guidelines.</text> </level> </level> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="13-301" title_number="13" title_name="Contractual Employment and Service Contracts in Executive Branch" subtitle_number="3" subtitle_name="Transfers of Contractual Employees to Budgeted Positions"> <text>This subtitle applies to all units in the Executive Branch of State government, except a unit with an independent personnel system.</text> </section> <section article="gsp" article_name="State Personnel and Pensions" number="13-302" title_number="13" title_name="Contractual Employment and Service Contracts in Executive Branch" subtitle_number="3" subtitle_name="Transfers of Contractual Employees to Budgeted Positions"> <text>If a contractual position is replaced by a budgeted position, a contractual employee in the contractual position may transfer to the budgeted position, if:</text> <level label="1"> <text>the employee meets the minimum qualifications for the budgeted position and has at least 6 continuous months of satisfactory service as of the date on which the replacement occurs;</text> </level> <level label="2"> <text>there is a continuing need for the function to be performed;</text> </level> <level label="3"> <text>the agency can document a competitive hiring process; and</text> </level> <level label="4"> <text>the budgeted position replacing the contractual position was not available at the time the contractual employee was hired.</text> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="13-303" title_number="13" title_name="Contractual Employment and Service Contracts in Executive Branch" subtitle_number="3" subtitle_name="Transfers of Contractual Employees to Budgeted Positions"> <text>To enable a contractual employee to participate in any required examination for a budgeted position under this subtitle, the Secretary may certify the continuation of the employee's contract for a maximum period of 1 year after the date on which the budgeted position is created.</text> </section> <section article="gsp" article_name="State Personnel and Pensions" number="13-304" title_number="13" title_name="Contractual Employment and Service Contracts in Executive Branch" subtitle_number="3" subtitle_name="Transfers of Contractual Employees to Budgeted Positions"> <level label="a"> <text>A contractual employee who transfers to a budgeted position under this subtitle or who is selected to fill a budgeted position in the State Personnel Management System, without a break in service, in the same principal unit that employs the contractual employee, shall be given credit for service in the contractual position for the purpose of establishing:</text> <level label="1"> <text>steps in the pay grade applicable to the budgeted position;</text> </level> <level label="2"> <text>annual leave; and</text> </level> <level label="3"> <text>seniority rights.</text> </level> </level> <level label="b"> <text>A contractual employee who transfers to a budgeted position under this subtitle or who is selected to fill a budgeted position shall become a member of the Employees’ Pension System of the State of Maryland.</text> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="13-305" title_number="13" title_name="Contractual Employment and Service Contracts in Executive Branch" subtitle_number="3" subtitle_name="Transfers of Contractual Employees to Budgeted Positions"> <text>This subtitle does not preclude the General Assembly from prohibiting the creation of a budgeted position or the replacement of a contractual position with a budgeted position in the State budget.</text> </section> <section article="gsp" article_name="State Personnel and Pensions" number="13-401" title_number="13" title_name="Contractual Employment and Service Contracts in Executive Branch" subtitle_number="4" subtitle_name="Service Contracts"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Service contract” means a procurement contract for services that:</text> <level label="1"> <text>will be provided to a unit in the Executive Branch of State government;</text> </level> <level label="2"> <text>will be performed within a State-operated facility; and</text> </level> <level label="3"> <text>in the estimation of the procurement officer, will exceed an annual cost of $100,000.</text> </level> </level> <level label="c"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, “services” has the meaning stated in § 11–101 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>“Services” does not include information technology services and cybersecurity.</text> </level> </level> <level label="d"> <text>“Unit” has the meaning stated in § 11-101 of the State Finance and Procurement Article.</text> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="13-402" title_number="13" title_name="Contractual Employment and Service Contracts in Executive Branch" subtitle_number="4" subtitle_name="Service Contracts"> <text>The policy of this State is to use State employees to perform all State functions in State-operated facilities in preference to contracting with the private sector to perform those functions.</text> </section> <section article="gsp" article_name="State Personnel and Pensions" number="13-403" title_number="13" title_name="Contractual Employment and Service Contracts in Executive Branch" subtitle_number="4" subtitle_name="Service Contracts"> <level label="a"> <text>A service contract may be entered into only as approved by the Board of Public Works in accordance with this subtitle.</text> </level> <level label="b"> <text>Except as provided in subsection (c) of this section, the Board of Public Works may approve a service contract for a unit only if the Board receives a certification from the Department that:</text> <level label="1"> <text>the service contract is exempt under § 13-404(b) of this subtitle; or</text> </level> <level label="2"> <text>the unit has complied with the requirements of § 13-404(c) of this subtitle.</text> </level> </level> <level label="c"> <text>If the General Assembly authorizes or requires that certain services be performed by an independent contractor, the Board of Public Works may approve a service contract for those services without the certification required by subsection (b) of this section.</text> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="13-404" title_number="13" title_name="Contractual Employment and Service Contracts in Executive Branch" subtitle_number="4" subtitle_name="Service Contracts"> <level label="a"> <text>The Department may certify a service contract to the Board of Public Works as provided in this section.</text> </level> <level label="b"> <text>The Department may certify a service contract as being exempt from the preference stated in § 13-402 of this subtitle if:</text> <level label="1"> <text>State employees are not available to perform the services;</text> </level> <level label="2"> <text>a conflict of interest would result if a State employee were to perform the services;</text> </level> <level label="3"> <text>the nature of the services meets the standards set by the Department for emergency appointments;</text> </level> <level label="4"> <text>the services are incidental to the purchase or lease of personal property or real property, such as a service agreement that is part of the purchase or rental of computers or office equipment; or</text> </level> <level label="5"> <text>a clear need exists to obtain an unbiased finding or opinion, such as an expert witness in litigation.</text> </level> </level> <level label="c"> <text>The Department may certify a service contract that is not exempt under subsection (b) of this section only if:</text> <level label="1"> <text>the unit that seeks to enter into the service contract has complied with § 13-405 of this subtitle; and</text> </level> <level label="2"> <text>the Department finds that:</text> <level label="i"> <text>the potential economic advantage of entering into the service contract is not outweighed by the preference stated in § 13-402 of this subtitle;</text> </level> <level label="ii"> <text>the service contract does not adversely affect the affirmative action efforts of this State;</text> </level> <level label="iii"> <text>the service contract includes adequate control mechanisms to ensure that the services will be performed in accordance with the service contract; and</text> </level> <level label="iv"> <text>the service contract complies with all of the requirements of Division II of the State Finance and Procurement Article.</text> </level> </level> </level> </section> <section article="gsp" article_name="State Personnel and Pensions" number="13-405" title_number="13" title_name="Contractual Employment and Service Contracts in Executive Branch" subtitle_number="4" subtitle_name="Service Contracts"> <level label="a"> <text>A unit that seeks to enter into a service contract that is not exempt under § 13–403(c) or § 13–404(b) of this subtitle shall submit to the Department the information required by this section.</text> </level> <level label="b"> <text>The unit shall submit a demonstration that the unit has taken formal and positive steps to consider alternatives to the service contract, including reorganization, reevaluation of service, and reevaluation of performance.</text> </level> <level label="c"> <level label="1"> <text>The unit shall submit calculations that:</text> <level label="i"> <text>compare the cost of the service contract with the cost of using State employees; and</text> </level> <level label="ii"> <text>show savings to this State, over the duration of the service contract, of 20% of the contract or $200,000, whichever is less.</text> </level> </level> <level label="2"> <text>In calculating the cost comparison required by this subsection, a unit shall include:</text> <level label="i"> <text>direct costs, including fringe benefits;</text> </level> <level label="ii"> <text>indirect overhead costs, including the proportional share of existing administrative salaries and benefits, rent, equipment costs, utilities, and materials, but only to the extent that those costs are attributed solely to the service in question and would not exist if the service were not performed by State employees;</text> </level> <level label="iii"> <text>any continuing or transitional costs that would be directly associated with contracting for the services, including unemployment compensation and the cost of transitional services; and</text> </level> <level label="iv"> <text>additional costs of performance of the services by State employees, including salaries and benefits of additional staff and the cost of additional space, equipment, and materials needed to perform the services.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>The unit shall submit a formal plan of assistance for all State employees who will be adversely affected by the service contract.</text> </level> <level label="2"> <text>The plan of assistance shall include:</text> <level label="i"> <text>efforts to place affected employees in vacant positions in the unit or in another unit;</text> </level> <level label="ii"> <text>provisions in the service contract, if feasible, for the hiring by the contractor of displaced employees; and</text> </level> <level label="iii"> <text>prior notification to affected employees in accordance with § 13–218.1 of the State Finance and Procurement Article.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>A service contract that is not exempt under § 13–403(c) or § 13–404(b) of this subtitle shall be subject to a legislative audit to determine compliance with projected cost savings under subsection (c) of this section.</text> </level> <level label="2"> <text>Audit findings from an audit conducted under paragraph (1) of this subsection shall be made available to the public.</text> </level> </level> </section>