In this chapter, the following words have the meanings indicated. Terms Defined. “Claim” means a complaint by a contractor or by a procurement agency relating to a contract subject to this title, except a real property lease. “Reviewing authority” means: With respect to the Department of Transportation, the Administrator or designee; With respect to any other procurement agency, the agency head or designee. Unless a lesser period is prescribed by law or by contract, a contractor shall file a written notice of a claim relating to a contract with the appropriate procurement officer within 30 days after the basis for the claim is known or should have been known, whichever is earlier. Contemporaneously with or within 90 days of the filing of a notice of a claim on a construction contract, or 30 days of this filing on a nonconstruction contract, but no later than the date that final payment is made, a contractor shall submit the claim to the appropriate procurement officer. On conditions the procurement officer considers satisfactory to the unit, the procurement officer may extend the time in which a contractor, after timely submitting a notice of claim, must submit a contract claim under a procurement contract for construction. An example of when a procurement officer may grant an extension includes situations in which the procurement officer finds that a contemporaneous or timely cost quantification following the filing of the notice of claim is impossible or impractical. The claim shall be in writing and shall contain: An explanation of the claim, including reference to all contract provisions upon which it is based; The amount of the claim; The facts upon which the claim is based; All pertinent data and correspondence that the contractor relies upon to substantiate the claim; and A certification by a senior official, officer, or general partner of the contractor or the subcontractor, as applicable, that, to the best of the person's knowledge and belief, the claim is made in good faith, supporting data are accurate and complete, and the amount requested accurately reflects the contract adjustment for which the person believes the procurement agency is liable. A notice of claim or a claim that is not filed within the time prescribed in Regulation .02 of this chapter shall be dismissed. Each procurement contract shall provide notice of the: Time requirements of this regulation; and Acceptable methods of filing a claim, including whether and how claims may be filed by electronic means. A claim may be filed by electronic means only if expressly permitted and in the manner specified by the contract. Upon receipt of a contractor's claim, the procurement officer: Shall investigate and review the facts pertinent to the claim; May request additional information or substantiation through any appropriate procedure; and Unless clearly inappropriate, shall seek the advice of the Office of the Attorney General. The procurement officer may conduct discussions or negotiations regarding the contractor claim and, subject to approval by the reviewing authority and the Office of the Attorney General, and consistent with the budget and applicable law, may settle the claim. The settlement agreement shall be written, shall provide for an appropriate release, and shall be supported by a written determination of the procurement officer that the settlement is in the best interests of the State. If discussions or negotiations are not conducted or if the contractor claim is not settled, the procurement officer shall prepare a recommended decision on the claim, which normally should contain: A description of the claim; A reference to pertinent contract provisions; A statement of factual areas of agreement or disagreement; A statement of the proposed decision, with supporting rationale; and A paragraph substantially as follows: The contractor claim and recommended decision of the procurement officer shall be submitted for review to the reviewing authority and the Office of the Attorney General. Unless the reviewing authority remands the proceeding with instructions to the procurement officer, the reviewing authority shall approve, modify, or disapprove the recommended decision within 180 days after receiving the contract claim or a longer period if the parties agree. In disapproving a recommended decision, the reviewing authority may order the procurement officer to effect a resolution of the claim. Unless the contractor claim is remanded to the procurement officer, the decision of the reviewing authority, including a decision not to pay a contract claim, is the final action by the procurement agency and shall be furnished to the contractor by certified mail, return receipt requested, or by any other method that provides evidence of receipt. Failure to reach a decision within the time required under §C of this regulation may be deemed, at the option of the contractor, to be a decision not to pay the contract claim that may be appealed in accordance with Regulation .09 of this chapter. Construction Contracts. This section applies only to procurement contracts for construction. The reviewing authority shall mail or deliver written notification of its decision to the contractor within: 90 days after the procurement officer receives the claim if the claim is an amount for which the Appeals Board accelerated procedure, set forth in COMAR 21.10.06.12, may be used; 180 days after the procurement officer receives the claim for a claim not covered under §E(2)(a) of this regulation; or A longer period that the contractor agrees to in writing. Failure to reach a decision within the time prescribed in §E(2) of this regulation may be deemed, at the option of the contractor, to be a decision not to pay the contract claim that may be appealed in accordance with Regulation .09 of this chapter. The final decision may award a contract claim only for those expenses incurred not more than 30 days before the notice of claim was initially required to have been submitted under Regulation .02 of this chapter. If the final decision grants the claim in part and denies the claim in part, the procurement agency shall pay the contractor the amount granted. Payment of the partial claim is not an admission of liability by the unit on the claim and does not preclude the unit from recovering the amount paid if a subsequent determination modifies the final decision. A claim by a procurement agency shall be asserted by written notice to the contractor and the procurement officer explaining: The basis for the claim; To the extent known, the amount of claim or performance or other action required of the contractor; and The time within which the contractor shall provide a written response. If appropriate, the procurement officer may conduct discussions or negotiations with the contractor. If the contractor fails to respond, provides an inadequate response, or denies the claim or the relief sought by the procurement agency in whole or in part, the procurement officer shall proceed in accordance with Regulation .08 of this chapter. The provisions of §§A, B, and C of this regulation do not apply if notice of claim is not required under the terms of the contract or under the circumstances, in which case the procurement officer shall proceed in accordance with Regulation .08 of this chapter. Upon receipt of a procurement agency's claim, the procurement officer: Shall investigate and review the facts pertinent to the claim; May request additional information or substantiation through any appropriate procedure; and Unless clearly inappropriate, may seek the advice of the Office of the Attorney General. The contractor shall submit a written response to the procurement agency claim within 30 days of the receipt of the written notice. This period may be extended at the discretion and with the written consent of the procurement officer. The written response shall state: Whether the contractor denies the procurement agency claim or the relief sought in whole or in part; The basis of any denial; and The factual areas of agreement or disagreement. The procurement officer may conduct discussions or negotiations regarding the procurement agency claim and, subject to approval by the reviewing authority and the Office of the Attorney General, and consistent with the applicable law, may settle the claim. The settlement agreement shall be written and shall be based upon a determination of the procurement officer that the settlement is in the best interests of the State. If the contractor fails to respond, provides an inadequate response, or denies the procurement agency claim or the relief sought by the procurement agency in whole or in part, and the claim is not otherwise settled, the procurement officer shall prepare a recommended decision on the claim, which shall contain: A description of the claim; A reference to pertinent contract provisions; A statement of factual areas of agreement and disagreement; A statement of the proposed decision, with supporting rationale; and A paragraph that states substantially the following: “This decision is the final action of this agency. This decision may be appealed to the Maryland State Board of Contract Appeals in accordance with COMAR 21.10.04.09. If you decide to take such an appeal, you must mail or otherwise file a written notice of appeal with the Appeals Board within 30 days from the date you receive this decision.” The procurement agency claim and recommended decision of the procurement officer shall be submitted for review to the reviewing authority and the Office of the Attorney General. The reviewing authority may approve, modify, or disapprove the recommended decision. In disapproving a recommended decision, the reviewing authority may order the procurement officer to effect a resolution of the claim. Unless the procurement agency claim is remanded to the procurement officer, the decision of the reviewing authority: Is the final action by the procurement agency; and Shall be furnished to the contractor by: Certified mail, return receipt requested; or Any other method that provides evidence of receipt. An appeal to the Appeals Board shall be mailed or otherwise filed within 30 days of the receipt of notice of the final decision. The notice shall indicate that an appeal is intended, shall reference the decision from which the appeal is being taken, and shall identify the contract involved. An appeal based upon a failure to reach a decision within the period prescribed in Regulation .04E of this chapter may be filed after the expiration of the prescribed period. If a procurement officer's decision is issued after the expiration of the prescribed period but before a notice of appeal is filed with the Appeals Board, §A of this regulation applies to any subsequent appeal. A copy of the notice of appeal shall be furnished to the procurement officer. An appeal received by the Appeals Board after the time prescribed in §A or B of this regulation may not be considered unless it was sent by registered or certified mail not later than the fifth day before the final date for filing an appeal as specified in §A or B of this regulation. A date affixed by postage meter will not be considered as evidence of the actual mailing date. The only acceptable evidence to establish the date of mailing shall be the U.S. Postal Service postmark on the wrapper or on the original receipt from the U.S. Postal Service. If the postmark is illegible, the appeal shall be deemed to have been filed when received by the Appeals Board. The procedures in this chapter apply to all contract claims filed after October 1, 2004 regardless of whether the contracts from which the claims arise commenced before October 1, 2004. State Finance and Procurement Article, §§12-101 and 15-201—15-223, Annotated Code of Maryland Effective date: July 1, 1981 (8:13 Md. R. II-5) Regulations .01—.03 repealed and new Regulations .01—.06 adopted effective January 9, 1989 (15:27 Md. R. 3138) Regulation .01B amended effective October 18, 1999 (26:21 Md. R. 1631) Regulation .02B amended effective October 6, 1997 (24:20 Md. R. 1405); January 24, 2000 (27:1 Md. R. 78) Regulation .02D amended and E adopted effective October 27, 2003 (30:21 Md. R. 1530) Regulation .04E amended effective October 6, 1997 (24:20 Md. R. 1405) Regulation .06D amended effective December 25, 2000 (27:25 Md. R. 2284) Chapter revised effective May 9, 2005 (32:9 Md. R. 849) Regulation .02E amended effective April 7, 2008 (35:7 Md. R. 751) Regulation .04C, D amended effective March 11, 2019 (46:5 Md. R. 310) Regulation .04E amended effective April 7, 2008 (35:7 Md. R. 751) Regulation .05C, D amended effective April 7, 2008 (35:7 Md. R. 751) Regulation .09B amended effective April 7, 2008 (35:7 Md. R. 751)