Chapter 03. Applicability
Regulation .01 Exemptions.LinkCopy Citation
A.
The following are exempt from applicability of this title:
(1)
Reimbursement contracts (Judicare, Medicaid, Medicare, or similar reimbursement contracts) for which user eligibility and cost are set by law or by rules and regulations;
(2)
Collective bargaining agreements with employee organizations (labor contracts);
(3)
Purchase of land, and a permanent or temporary interest in land;
(4)
Contracts or like business agreements between a State agency and:
(a)
Another State agency, except as provided under COMAR 21.05.12.02B;
(b)
An agency or political subdivision of the State or other governments, except as provided under COMAR 21.05.12.02B;
(c)
A government, including the government of another state, of the United States, or of another country; or
(d)
A bistate, multistate, bicounty, or multicounty governmental agency.
(5)
Procurement by bistate or multistate governmental agencies;
(6)
Procurement by bicounty or multicounty governmental agencies;
(7)
Procurement by political subdivisions of the State, including counties, municipalities, sanitary districts, drainage districts, soil conservation districts, and water supply districts;
(8)
Disposal of surplus or excess real or personal property;
(9)
Procurement in support of enterprise activities for purposes of direct resale or remanufacture and subsequent resale;
(10)
Agreements creating contractual employee relationships, as set forth in State Personnel and Pensions Article, §13-101, Annotated Code of Maryland;
(11)
Procurements by the Maryland State Planning Council on Developmental Disabilities for services to support demonstration, pilot, and training programs;
(12)
Procurements by the Maryland State Arts Council for the promotion or support of the arts;
(13)
The Blind Industries and Services of Maryland;
(14)
The Maryland Health and Higher Educational Facilities Authority to the extent that no monies of the State are to be expended on a contract;
(15)
The Maryland Higher Education Supplemental Loan Authority to the extent that no monies of the State are to be expended on a contract;
(16)
The Maryland Industrial Training Program and the Partnership for Workforce Quality Program in the Department of Commerce for training services or programs for new or expanding businesses or industries or businesses or industries in transition;
(17)
The Board of Trustees of the State Retirement and Pension System, except as provided by State Finance and Procurement Article, Title 14, Subtitle 3, Annotated Code of Maryland, and COMAR 21.11.03, for:
(a)
Services of managers to invest the assets of the State Retirement and Pension System, including real and personal property;
(b)
Expenditures to manage, maintain, and enhance the value of the assets of the State Retirement and Pension System in accordance with investments guidelines adopted by the Board of Trustees;
(c)
Services related to the administration of the optional retirement program under State Personnel and Pensions Article, Title 30, Annotated Code of Maryland; and
(d)
Expenditures for the safe custody, domestic or global, of investments as provided under State Personnel and Pensions Article, §21-123(f), Annotated Code of Maryland;
(18)
The Maryland Food Center Authority to the extent the Authority is exempt under Article 41, Title 13, Subtitle 1, Annotated Code of Maryland;
(19)
The Maryland Public Broadcasting Commission:
(a)
For artists' services for educational and cultural television productions; or
(b)
When planning for or fulfilling the obligations of grants or cooperative agreements that support the educational and cultural activities of the Commission;
(20)
Public institutions of higher education for cultural, entertainment, and intercollegiate athletic contracts;
(21)
The Maryland Environmental Service except with respect to State Finance and Procurement Article, Title 14, Subtitle 3, and Titles 16 and 17, Annotated Code of Maryland, and the regulations adopted under these statutes;
(22)
The Maryland Automobile Insurance Fund;
(23)
The Maryland Historical Trust for:
(a)
Surveying and evaluating architecturally, archaeologically, historically, or culturally significant properties; and
(b)
Other than as to architectural services, preparing historic preservation planning documents and educational material;
(24)
The University System of Maryland and Morgan State University, as set forth in Regulation .01-1 of this chapter.
(25)
The Maryland Stadium Authority except as provided by State Finance and Procurement Article, Title 14, Subtitles 3 and 5, Annotated Code of Maryland, COMAR 21.11.03 and 21.11.01.06;
(26)
St. Mary's College of Maryland, as set forth in Regulation .01-1 of this chapter;
(27)
The Department of Commerce, for negotiating and entering into private sector cooperative marketing projects that directly enhance promotion of Maryland and the tourism industry where there will be a private sector contribution to the project of not less than 50 percent of the total cost of the project, if the project is reviewed by the Attorney General and approved by the Secretary of Commerce or the Secretary's designee;
(28)
The Rural Maryland Council;
(29)
The Maryland State Lottery Agency, for negotiating and entering into private sector cooperative marketing projects that directly enhance promotion of the Maryland State Lottery and its products, if the cooperative marketing project:
(a)
Provides a substantive promotional or marketing value that the Lottery determines acceptable in exchange for advertising or other promotional activities provided by the Lottery;
(b)
Does not involve advertising or promoting alcohol or tobacco products; and
(c)
Is reviewed by the Attorney General and approved by the Maryland Lottery Director or the Director's designee;
(30)
The Maryland Health Insurance Plan established under Insurance Article, Title 14, Subtitle 5, Annotated Code of Maryland;
(31)
The Maryland Energy Administration, when negotiating or entering into grants or cooperative agreements with private entities to meet federal specifications or solicitation requirements related to energy conservation, energy efficiency, or renewable energy projects that benefit the State; and
(32)
Except as provided by State Finance and Procurement Article, Title 14, Subtitle 3, Annotated Code of Maryland, and COMAR 21.11.03, the Maryland Developmental Disabilities Administration of the Maryland Department of Health for family and individual support services, and individual family care services, as those terms are defined by the Maryland Department of Health in COMAR Title 10;
(33)
Except as provided by State Finance and Procurement Article, Title 14, Subtitle 3, Annotated Code of Maryland, and COMAR 21.11.03, the College Savings Plans of Maryland for:
(a)
Services of managers to invest the assets of the Maryland Prepaid College Trust in accordance with the comprehensive investment plan adopted by the College Savings Plans of Maryland Board under Education Article, §18-906, Annotated Code of Maryland; and
(b)
Expenditures to manage, maintain, and enhance the value of the assets of the Maryland Prepaid College Trust in accordance with the Comprehensive Investment Plan adopted by the College Savings Plans of Maryland Board under Education Article, §18-906, Annotated Code of Maryland;
(34)
A contract or grant awarded by a unit of State government to the Chesapeake Bay Trust for a project involving the restoration or protection of the Chesapeake Bay and other aquatic and land resources of the State;
(35)
The Department of General Services for the rehabilitation of a structure that is listed in or eligible for listing in the National Register of Historic Places, to the extent the procurement is necessary to preserve the historic fabric of the structure impacted by the rehabilitations, as determined by the Department of General Services in consultation with the Maryland Historical Trust;
(35-1)
The Department of Natural Resources, for negotiating or entering into grants, agreements, or partnerships with nonprofit entities related to conservation service opportunities;
(35-2)
The Maryland Clean Energy Center, except as provided by State Finance and Procurement Article, Title 14, Subtitle 3, Annotated Code of Maryland;
(35-3)
The State Archives for preservation, conservation, proper care, restoration, and transportation of fine art or decorative art that is in the custody of the Commission on Artistic Property and owned by or loaned to the State;
(35-4)
The Board of Trustees of the Maryland Teachers and State Employees Supplement Retirement Plans, except as provided in State Finance and Procurement Article, Title 12, Subtitle 4, and Title 14, Subtitle 3, Annotated Code of Maryland, for:
(a)
Services of managers to invest the assets deposited and invested in investment options of the supplemental retirement plans in accordance with the statements of investment policy adopted by the Board of Trustees of the Maryland Teachers and State Employees Supplement Retirement Plans;
(b)
Expenditures to manage, maintain, and enhance the value of assets deposited and invested in investment options of the supplemental retirement plans selected in accordance with the statements of investment policy adopted by the Board of Trustees of the Maryland Teachers and State Employees Supplement Retirement Plans from time to time; and
(c)
Expenditures for the safe custody, domestic or global, of assets deposited and invested in investment options of the supplemental retirement plans selected in accordance with State Personnel and Pensions Article, §35-302(b), Annotated Code of Maryland; and
(36)
Other units that are specifically exempted by law.
B.
The provisions of State Finance and Procurement Article, §§10-204, 11-205, 13-219, 13-221, §15-112, Title 12, Subtitles 2 and 4, Title 16, and Title 17, Annotated Code of Maryland, apply to procurements referred to in §A(4), (9), (11)—(16), (18)—(20), (22)—(23), and (26)—(31) of this regulation. The provisions of State Finance and Procurement Article, Title 14, Subtitle 3, Annotated Code of Maryland, apply to all procurements referred to in §A of this regulation except §A(1)—(3), (4)(a) and (d), (5)—(8), (10), and (13) of this regulation.
C.
The provisions of State Finance and Procurement Article, Title 12, Subtitle 4, Annotated Code of Maryland, apply to each unit with an exemption from any provision of Division II of the State Finance and Procurement Article except:
(1)
The Maryland Health and Higher Educational Facilities Authority if no State money is to be spent on a procurement contract;
(2)
Procurement pursuant to State Finance and Procurement Article, §11-203(a)(2), Annotated Code of Maryland;
(3)
The University System of Maryland;
(4)
Morgan State University; and
(5)
St. Mary's College of Maryland.
D.
The provisions of State Finance and Procurement Article, §17-502, Annotated Code of Maryland, apply to:
(1)
A unit of State government;
(2)
A county within the State;
(3)
A municipality within the State;
(4)
A bicounty or multicounty governmental agency;
(5)
A special tax district, sanitary district, drainage district, soil conservation district, and water supply district;
(6)
A public institution of higher education;
(7)
A public school; and
(8)
Each entity exempt from the provisions of State Finance and Procurement Article, Division II, Annotated Code of Maryland, except for the Maryland Health and Higher Educational Facilities Authority.
Regulation .01-1 Public Universities and Colleges.LinkCopy Citation
A.
Except as provided in this regulation, the University System of Maryland, Morgan State University, Baltimore City Community College, and St. Mary’s College of Maryland are exempt from applicability of this title and Division II of the State Finance and Procurement Article, Annotated Code of Maryland.
B.
Applicable Provisions of State Finance and Procurement Article, Annotated Code of Maryland.
(1)
The following provisions of State Finance and Procurement Article, Annotated Code of Maryland, apply to the University System of Maryland, Morgan State University, Baltimore City Community College, and St. Mary’s College of Maryland:
(a)
§11-205 (Collusion);
(b)
§11-205.1 (Falsification, Concealment, etc., of Material Facts);
(c)
§13-219 (Nondiscrimination Clause);
(d)
§13-225 (Retainage);
(e)
§15-226 (Prompt Payment of Subcontractors);
(f)
Title 14, Subtitle 3 (Minority Business Enterprise Participation) and Subtitle 7 (Certified Local Farm Enterprise Program);
(g)
Title 15, Subtitle 1 (Procurement Contract Administration);
(h)
Title 16 (Suspension and Debarment of Contractors);
(i)
Title 17, Subtitle 5 (eMaryland Marketplace — Use by Certain Persons); and
(j)
§14-110(b) and (c) (Preferred Provider Reporting).
(2)
State Finance and Procurement Article, Title 14, Subtitle 2 (Small Business Preference Program) applies to the University System of Maryland and Morgan State University.
C.
The University System of Maryland, Morgan State University, Baltimore City Community College, and St. Mary’s College of Maryland shall conduct procurements under procedures that promote the purposes stated in State Finance and Procurement Article, §11-201, Annotated Code of Maryland.
D.
The requirements of §§B and C of this regulation do not apply to:
(1)
Procurement by the University System of Maryland, Morgan State University, Baltimore City Community College, or St. Mary’s College of Maryland from:
(a)
Another unit,
(b)
A political subdivision of the State,
(c)
An agency of a political subdivision of the State,
(d)
A government, including the government of another state, of the United States, or of another country,
(e)
An agency or political subdivision of a government, or
(f)
A bistate, multistate, bicounty, or multicounty governmental agency;
(2)
Procurement by the University System of Maryland, Morgan State University, Baltimore City Community College, or St. Mary’s College of Maryland in support of enterprise activities for the purpose of:
(a)
Direct resale,
(b)
Remanufacture and subsequent resale, or
(c)
Overseas programs; or
(3)
Procurement by the University System of Maryland for:
(a)
Services of managers to invest, in accordance with the management and investment policies adopted by the Board of Regents, gift and endowment assets received by the University in accordance with Education Article §12-104(e), Annotated Code of Maryland; or
(b)
Expenditures to manage, maintain, and enhance, in accordance with the management and investment policies adopted by the Board of Regents, the value of gifts and endowment assets received by the University in accordance with the Education Article §12-104(e), Annotated Code of Maryland.
E.
Before entering into a contract for services that exceeds $1,000,000 ($500,000 for Baltimore City Community College) or a contract for capital improvements with a value that exceeds $1,000,000 ($500,000 for Baltimore City Community College), the University System of Maryland, Morgan State University, Baltimore City Community College, and St. Mary’s College of Maryland shall obtain the review and approval of the Board of Public Works by submitting an Action Agenda item pursuant to COMAR 21.02.01.05A(2)(d).
Regulation .02 General Applicability.LinkCopy Citation
A.
These regulations apply to every expenditure by a State agency for the acquisition, rental, purchase, or lease of supplies, services, maintenance, construction, construction-related services, architectural services, engineering services, and the lease of real property by the State as lessee. These regulations also apply to certain revenue-producing contracts as set forth in Regulation .03B of this chapter.
B.
Each regulation adopted under this title that is in effect on the date of award of any procurement contract, unless otherwise indicated in the regulation, is applicable to the contract.
C.
A regulation adopted under this title may not change any right or obligation under a procurement contract in existence before the effective date of the regulation.
Regulation .03 Organizational Applicability.LinkCopy Citation
A.
Every State agency is subject to the provisions of these regulations unless expressly exempted by this title or by statute.
B.
Specifically subject to these regulations are:
(1)
Procurements by a State agency, even if a resulting procurement contract will involve no expenditure by the State and will produce revenue for the State for services that are to be provided for the benefit of:
(a)
State officials, State employees, or students at a State facility, including a school, hospital, institution, or recreational facility;
(b)
Clients or patients at a State hospital or State institution;
(c)
The public at a State recreational facility;
(d)
The public at a State transportation facility, unless a revenue-producing contract involves:
(i)
A license, permit, or similar permission to use State facilities for activities related to the movement of passengers or goods, or for providing goods or services to passengers, patrons, or tenants at a transportation facility, or for advertising or promotional purposes; or
(ii)
A lease of State property under State Finance and Procurement Article, Title 10, Subtitle 3, Annotated Code of Maryland; or
(e)
The public at a State higher education facility unless a revenue-producing contract involves:
(i)
Research contracts or grants sponsored by third parties,
(ii)
Administration of intellectual property rights,
(iii)
Housing, food, and related supply or service contracts for conference facilities, or
(iv)
Permission for exhibitions or displays on campus property;
(2)
Each procurement by a State agency on behalf of another governmental agency or other entity; and
(3)
Procurements by the Executive Director of the Somers Cove Marina Commission of goods, services, capital improvements, design, and maintenance with an expected value exceeding $200,000.
Regulation .04 Conflicts.LinkCopy Citation
This title does not apply to any procurement or contract to the extent of any conflict with:
A.
A governing federal law, regulation, assistance instrument, or other requirement; or
B.
The terms of any gift as defined in Article 1, §22, Annotated Code of Maryland.
Regulation .05 Waiver or Modification of Requirement for Contracts to be Performed Outside the United States.LinkCopy Citation
Except as set forth in State Finance and Procurement Article, §12-104(b), Annotated Code of Maryland, the Board may modify or waive the requirements of this title as to a procurement contract or a class of contracts that are to be performed entirely outside the United States to the extent:
A.
The basic purposes of State Finance and Procurement Article, §11-201, Annotated Code of Maryland, are maintained;
B.
The circumstances of the procurement require the modification or waiver; and
C.
Foreign contractors are expected to be involved in the procurement.
Regulation .06 Waiver.LinkCopy Citation
The Board of Public Works may waive or vary particular provisions of this title to the extent that the waiver or variance is not inconsistent with State statutes if:
A.
In the Board of Public Works' determination, the application of a regulation in a specific case or in an emergency situation would be inequitable or contrary to the purposes of State law; and
B.
The Office of the Attorney General approves the waiver for form and legal sufficiency.
Regulation .07 Renewable Energy Contracts — Waiver of Mandatory Termination Clause.LinkCopy Citation
A.
For contracts procuring energy generated from a Tier 1 or a Tier 2 renewable source as defined in Public Utility Companies Article, §7-701, Annotated Code of Maryland, and on the recommendation of the Secretary of General Services, the Board may modify or waive the requirement to include an automatic termination clause in multi-year contracts provided in COMAR 21.07.01.10.
B.
In determining whether to modify or waive the requirement, the Board of Public Works shall consider the effect of requiring the termination clause under COMAR 21.07.01.10 on the ability of the energy supplier to obtain financing for the renewable energy generation project that produces the energy that the State is procuring.
Regulation .08 MARC Service.LinkCopy Citation
A.
An entity as defined in State Finance and Procurement Article, §12-501, Annotated Code of Maryland, that submits a bid or proposal in response to a Department of Transportation solicitation for Maryland Area Regional Commuter (MARC) service that is funded wholly or in part with public funds shall comply with the requirements of State Finance and Procurement Article, Title 12, Subtitle 5, Annotated Code of Maryland.
B.
An entity awarded a procurement contract to provide MARC service in accordance with State Finance and Procurement Article, §12-509(c), Annotated Code of Maryland, is considered to have satisfied the requirements of State Finance and Procurement Article, §§12-505—12-507, Annotated Code of Maryland, for all future procurement contracts to provide MARC service.
C.
A bidder or offeror for a procurement contract to provide MARC service may not submit a bid protest under COMAR 21.10.02 relating to the requirements of State Finance and Procurement Article, Title 12, Subtitle 5, Annotated Code of Maryland.
Chapter annotations
Authority: Natural Resources Article, §3-103; State Finance and Procurement Article, §§11-201—11-203, 12-101, 12-104, and 17-502; Annotated Code of Maryland; Ch. 198, Acts of 2009; Chs. 428, 495, and 713, Acts of 2010; Chs. 108, 111, and 268, Acts of 2017; Ch. 273, Acts of 2019
History: Effective date: July 1, 1981 (8:13 Md. R. II-5)
History: Regulations .01 and .03B amended as an emergency provision effective July 1, 1982 (9:15 Md. R. 1508); emergency status extended at 9:16 Md. R. 1601, 9:17 Md. R. 1698, 9:20 Md. R. 1979; adopted permanently effective October 12, 1982 (9:20 Md. R. 1982)
History: Regulation .01A amended effective July 29, 1985 (12:15 Md. R. 1526)
History: Chapter revised effective January 9, 1989 (15:27 Md. R. 3138)
History: Regulation .01 amended effective January 26, 1998 (25:2 Md. R. 79); March 8, 1999 (26:5 Md. R. 393); October 18, 1999 (26:21 Md. R. 1631); November 7, 2005 (32:22 Md. R. 1759); March 12, 2007 (34:5 Md. R. 562); February 23, 2009 (36:4 Md. R. 355)
History: Regulation .01A amended effective April 7, 2008 (35:7 Md. R. 751); January 14, 2010 (37:1 Md. R. 15); February 7, 2011 (38:3 Md. R. 152); March 11, 2019 (46:5 Md. R. 310); June 29, 2020 (47:13 Md. R. 643)
History: Regulation .01B amended effective March 13, 2006 (33:5 Md. R. 523); September 18, 2023 (50:18 Md. R. 800)
History: Regulation .01C adopted effective March 13, 2006 (33:5 Md. R. 523)
History: Regulation .01-1 adopted effective October 18, 1999 (26:21 Md. R. 1631)
History: Regulation .01-1 amended effective November 7, 2005 (32:22 Md. R. 1759); March 12, 2007 (34:5 Md. R. 562); September 18, 2023 (50:18 Md. R. 800)
History: Regulation .01-1B amended effective April 28, 2014 (41:8 Md. R. 473)
History: Regulation .01-1E amended effective May 13, 2013 (40:9 Md. R. 789)
History: Regulation .03B amended effective March 5, 2012 (39:4 Md. R. 338); September 18, 2023 (50:18 Md. R. 800)
History: Regulation .05 amended effective April 7, 2008 (35:7 Md. R. 751)
History: Regulation .06 adopted effective April 7, 2008 (35:7 Md. R. 751)
History: Regulation .07 adopted effective February 7, 2011 (38:3 Md. R. 152)
History: Regulation .08 adopted effective March 5, 2012 (39:4 Md. R. 338)