State Procurement - Transparency and Procedures

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
Italics indicate opposite chamber/conference committee amendments.
*hb0193*

HOUSE BILL 193
P2 (6lr0805)
ENROLLED BILL
— Government, Labor, and Elections/Budget and Taxation —
Introduced by Delegate Kerr

Read and Examined by Proofreaders:

_______________________________________________
Proofreader.
_______________________________________________
Proofreader.

Sealed with the Great Seal and presented to the Governor, for his approval this

_______ day of _______________ at _______________ _________ o’clock, ________M.

______________________________________________
Speaker.

CHAPTER ______

AN ACT concerning 1

State Procurement – Transparency and Procedures 2

FOR the purpose of requiring a unit of State government to provide a certain debriefing of 3
a contract award to certain persons on request; adding an exemption to the 4
prohibition on an individual who assists in the drafting of specifications, an 5
invitation for bids, or a request for proposals from submitting a bid or proposal or 6
assisting in the submission of a bid or proposal; requiring a procurement contract to 7
include a certain clause pertaining to certain contract modifications related to 8
changes in State law; altering the required contents of a certain change order; 9
altering certain procedures, time periods, and appeals related to certain protests; 10
altering the time within which a written notice of a claim relating to a certain 11
procurement contract shall be made; applying certain provisions related to a contract 12
claim that applied to construction contracts to certain other procurement contracts; 13
requiring a contractor, on request of a procurement officer, to provide certain 14
information prior to receiving p ayment on a claim; altering the procedures for 15
2 HOUSE BILL 193

reviewing and making a certain determination related to a certain contract claim; 1
and generally relating to State procurement procedures. 2

BY adding to 3
Article – State Finance and Procurement 4
Section 13–104(h) 5
Annotated Code of Maryland 6
(2021 Replacement Volume and 2025 Supplement) 7

BY repealing and reenacting, with amendments, 8
Article – State Finance and Procurement 9
Section 13–212.1(b), 13–218(a), 15–112(b)(1), 15–218, and 15–219 10
Annotated Code of Maryland 11
(2021 Replacement Volume and 2025 Supplement) 12

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14

Article – State Finance and Procurement 15

13–104. 16

(H) (1) AN UNSUCCESSFUL OFFER OR MAY SUBMIT A REQUEST TO THE 17
PROCUREMENT OFFICER FOR A DEBRIEFING OF THE RECOMMENDED CONT RACT 18
AWARD. 19

(2) AFTER RECEIVING A REQ UEST FOR A DEBRIEFIN G UNDER 20
PARAGRAPH (1) OF THIS SUBSECTION , THE PROCUREMENT OFFI CER SHALL 21
PROVIDE THE DEBRIEFING: 22

(I) AS SOON AS IS FEA SIBLE AFTER RECEIVING THE REQUEST; 23
AND 24

(II) BEFORE THE RECOMMEND ED CONTRACT AWARD IS 25
PRESENTED FOR APPROVAL TO THE HEAD OF THE UNIT OR THE BOARD. 26

(3) EXCEPT FOR INFORMATIO N REASONABLY DETERMI NED BY THE 27
PROCUREMENT OFFICER TO BE CONFIDENTIAL , PROPRIETARY, OR PRIVILEGED, A 28
DEBRIEFING REQUIRED UNDER PARAGRAPH (1) OF THIS SUBSECTION S HALL 29
INCLUDE ALL RELEVANT INFORMATION THAT HAS BEEN REQUESTED. 30

(4) THE OFFICE OF STATE PROCUREMENT SHALL EST ABLISH 31
GUIDELINES AND PROCEDURES FOR DEBRIEFINGS, INCLUDING A DEADLINE FOR AN 32
UNSUCCESSFUL OFFEROR TO SUBMIT A REQUEST FOR A DEBRIEFING. 33

HOUSE BILL 193 3

13–212.1. 1

(b) For purposes of subsection (a) of this section, assisting in the drafting of 2
specifications, an invitation for bids, or a request for proposals for a procurement does not 3
include: 4

(1) providing descriptive literature, such as catalogue sheets, brochures, 5
technical data sheets, or standard specification “samples”, whe ther requested by an 6
executive unit or provided unsolicited; 7

(2) submitting written or oral comments on a specification prepared by an 8
executive unit or on a solicitation for a bid or proposal when comments are solicited from 9
two or more persons as part of a request for information or a prebid or preproposal process; 10

(3) providing specifications for a sole source procurement made in 11
accordance with § 13–107 of this title; 12

(4) providing architectural and engineering services for: 13

(i) programming, master planning, or other project planning 14
services; or 15

(ii) the design of a construction project if: 16

1. the design services do not involve lead or prime design 17
responsibilities or construction phase responsibilities on behalf of the State; and 18

2. A. the anticipated value of the procurement contract at 19
the time of advertisement is at least $2,500,000 and not more than $100,000,000; or 20

B. regardless of the amount of the procurement contract, the 21
payment to the individual or person for the design services does not exceed $500,000; [or] 22

(5) for a procurement of health, human, social, or educational services, 23
comments solicited from two or more persons as part of a request for information, including 24
written or oral comments on a draft specification, an invitation for bids, or a request for 25
proposals; OR 26

(6) PROVIDING INFORMATION THAT DOES NOT PROVIDE AN UNF AIR 27
COMPETITIVE ADVANTAGE FOR ANY BIDDER OR OFFEROR. 28

13–218. 29

(a) Each procurement contract shall include clauses covering: 30

(1) termination for default; 31
4 HOUSE BILL 193

(2) termination wholly or partly by the State for its convenience if the head 1
of the primary procurement unit determines that termination is appropriate; 2

(3) variations that occur between estimated and actual quantities of work 3
in a procurement contract; 4

(4) liquidated damages, as appropriate; 5

(5) specified excuses for nonperformance; 6

(6) except for real property leases, the unilateral right of the State to order 7
in writing: 8

(i) changes in the work, if the changes are within the scope of the 9
procurement contract; and 10

(ii) a temporary stop or delay in performance; 11

(7) the obligation of the contractor to comply with the political contribution 12
reporting requirements under Title 14 of the Election Law Article, to which the contractor 13
may be subject as required under § 17–402 of this article; [and] 14

(8) nonvisual access for information technology as required under § 15
3A–312 of this article; AND 16

(9) A REQUIREMENT FOR THE AUTHORIZATION OF A CONTRACTOR TO 17
REQUEST A CONTRACT MODIFICATION TO PROVIDE AN EQUITABLE ADJUSTMENT TO 18
COMPENSATE THE CONTR ACTOR FOR INCREASES IN THE COST OF AND T IME FOR 19
CONTRACT PERFORMANCE DUE TO CHANGES IN STATE LAW APPLIED BY THE 20
PROCUREMENT UNIT. 21

15–112. 22

(b) (1) Except as provided in paragraphs (2) and (3) of this subsection, a unit 23
may not require a prime contractor and a prime contractor may not require a subcontractor 24
to begin change order work under a contract until the procurement officer for the unit issues 25
a written change order that specifies whether the work is to proceed, in compliance WITH 26
ANY CHANGES IN STATE LAW OR REGULATION OR with the terms of the contract, on: 27

(i) an agreed–to price which may include a preestablished catalog 28
or unit prices based on local prevailing wage rates and equipment and material costs for 29
each task required for the change order as included in the bid documents at the time of bid; 30

(ii) a force account; 31

HOUSE BILL 193 5

(iii) a construction change directive; or 1

(iv) a time and materials basis. 2

15–218. 3

(a) [Except as provided under § 15–219 of this subtitle, a] A procurement officer 4
who receives a TIMELY protest [or a contract claim from a contractor ] shall comply with 5
this section. 6

(b) (1) On receipt of a TIMELY protest [or contract claim from a contractor], a 7
procurement officer: 8

(i) shall review the substance of the protest [or contract claim]; 9

(ii) may request additional information or substantiation through an 10
appropriate procedure; 11

(iii) may discuss with interested parties and, if appropriate, may 12
conduct negotiations with the person initiating the protest [or contract claim]; and 13

(iv) shall comply with any applicable regulations. 14

(2) Unless clearly inappropriate, the procurement officer shall seek the 15
advice of the Office of the Attorney General ON ANY LEGAL ISSUES RAISED IN THE 16
PROTEST. 17

(c) (1) Subject to subsection (b) of this section and consistent with the State 18
budget and other applicable laws, the procurement officer shall: 19

(i) resolve the protest [or contract claim by agreement of the 20
parties]; 21

(ii) wholly or partly deny the protest [or contract claim]; or 22

(iii) wholly or partly grant the relief sought by the person who 23
submitted the protest [or contract claim]. 24

(2) The procurement officer promptly shall send the decision in writing to 25
the reviewing authority. 26

(d) Unless otherwise provided by regulation, the decision of the procurement 27
officer shall be reviewed promptly by: 28

(1) the head of the unit OR THE HEAD’S DESIGNEE; and 29

6 HOUSE BILL 193

(2) the head of the principal department or other equivalent unit of which 1
the unit is a part OR THE HEAD’S DESIGNEE. 2

(e) [(1) Except as provided under paragraph (3) of this subsection, the 3
reviewing authority shall approve, disapprove, or modify the decisio n of the procurement 4
officer within 180 days after receiving the contract claim or a longer period to which the 5
parties agree. 6

(2)] The action of the [reviewing authority under this subsection ] 7
PROCUREMENT OFFICER shall be the final action of the unit. 8

[(3) The reviewing authority may remand the proceeding with instructions 9
to the procurement officer. 10

(4) On remand, the procurement officer shall proceed under subsection (b) 11
of this section in accordance with those instructions.] 12

(f) (1) A decision [not to pay a contract claim] TO DENY A PROTEST is a final 13
action for the purpose of appeal to the Appeals Board. 14

(2) The failure to [reach] ISSUE a decision OR ISSUE A WRITTEN NOTICE 15
OF THE ANTICIPATED DECISION DATE [within the time required under subsection (e) of 16
this section] ON THE PROTEST WITHIN 60 90 DAYS AFTER RECEIPT may be deemed, at 17
the SOLE option of the [contractor, to be a decision not to pay the contract claim ] 18
PROTESTOR, TO BE A DECISION TO DENY THE PROTEST. 19

15–219. 20

(a) [Except to the extent a shorter period is prescribed by regulation governing 21
differing site conditions, a] A contractor shall file a written notice of a claim relating to a 22
procurement contract [for construction] within [30] 60 days after [the basis for the claim 23
is known or should have been known] THE LATER OF: 24

(1) FOR REQUESTS FOR EQUITABLE ADJUSTMENTS, THE LATER OF: 25

(I) A UNIT DENYING A REQUEST FOR EQUITABLE ADJUSTMENT; 26
OR 27

(2) (II) ONE OF THE PARTIES REACHING NOTIFYING THE OTHER 28
PARTY IN WRITING THA T THE NOTIFYING PARTY DETE RMINED THE DISCUSSIO NS 29
REACHED AN IMPASSE IN DISCUSSIONS ATTEMPTING TO RESOLV E THEIR 30
DISAGREEMENT REGARDING THE REQUEST.; AND 31

(2) FOR OTHER CLAIMS , THE BASIS FOR THE CL AIM IS KNOWN OR 32
SHOULD HAVE BEEN KNOWN. 33
HOUSE BILL 193 7

(b) Unless extended by the unit, within 90 days after submitting a notice of a 1
contract claim under a procurement contract [for construction], a contractor shall submit 2
to the unit a written explanation that states: 3

(1) the amount of the contract claim; 4

(2) the facts on which the contract claim is based; and 5

(3) all relevant data and correspondence that may substantiate the 6
contract claim. 7

(C) (1) ON RECEIPT OF A TIMEL Y CONTRACT CLAIM FRO M A 8
CONTRACTOR, A PROCUREMENT OFFICER: 9

(I) SHALL REVIEW THE SUBSTANCE OF THE CONTRACT CLAIM; 10

(II) MAY REQUEST ADDITION AL INFORMATION OR 11
SUBSTANTIATION THROUGH AN APPROPRIATE PROCEDURE; 12

(III) MAY CONDUCT NEGOTIAT IONS WITH THE CONTRA CTOR 13
INITIATING THE CONTRACT CLAIM; AND 14

(IV) SHALL COMPLY WITH ANY APPLICABLE REGULATIONS. 15

(2) UNLESS CLEARLY INAPPROPRIATE, THE PROCUREMENT OFFICER 16
SHALL SEEK THE ADVIC E OF THE OFFICE OF THE ATTORNEY GENERAL ON ANY 17
LEGAL ISSUES. 18

(D) SUBJECT TO SUBSECTION (C) OF THIS SECTION AND CONSISTENT WITH 19
THE STATE BUDGET AND O THER APPLICABLE LAWS, THE PROCUREMENT OFFICER 20
SHALL: 21

(1) RESOLVE THE CONTRACT CLAIM BY AGREEMENT OF THE PARTIES; 22

(2) WHOLLY OR PARTLY DENY THE CONTRACT CLAIM; OR 23

(3) WHOLLY OR PARTLY GRA NT THE RELIEF SOUGHT BY THE 24
CLAIMANT. 25

[(c)] (E) (1) EXCEPT AS PROVIDED UNDER PA RAGRAPH (3) OF THIS 26
SUBSECTION, FOR A CONTRACT OTHER THAN A CONSTRUCTION CONTRACT, THE 27
REVIEWING AUTHORITY SHALL APPROVE, DISAPPROVE, OR MODIFY THE DECISI ON 28
OF THE PROCUREMENT O FFICER WITHIN 180 DAYS AFTER RECEIVING THE 29
CONTRACT CLAIM OR A LONGER PERIOD TO WHICH THE PARTIES AGREE. 30
8 HOUSE BILL 193

(2) THE ACTION OF THE REV IEWING AUTHORITY UND ER THIS 1
SUBSECTION SHALL BE THE FINAL ACTION OF THE UNIT. 2

(3) (I) THE REVIEWING AUTHORI TY MAY REMAND THE 3
PROCEEDING WITH INSTRUCTIONS TO THE PROCUREMENT OFFICER. 4

(II) ON REMAND , IN ACCORDANCE WITH T HE REVIEWING 5
AUTHORITY’S INSTRUCTIONS , THE PROCUREMENT OFFI CER SHALL PROCEED IN 6
ACCORDANCE WITH SUBSECTION (C) OF THIS SECTION. 7

(F) (1) Subject to paragraph (2) of this subsection, FOR A CONSTRUCTION 8
CONTRACT, the head of the unit engaged in procurement [of the construction ] OR THE 9
HEAD’S DESIGNEE shall review the contract claim AND THE DECISION OF THE 10
PROCUREMENT OFFICER. 11

(2) If the unit is part of a principal department or other equivalent unit, 12
the Secretary of the principal department or the equivalent official OR THE SECRETARY’S 13
DESIGNEE OR THE OFFICIAL ’S DESIGNEE shall review the contract claim AND THE 14
DECISION OF THE PROC UREMENT OFFICER , unless review has been delegated by 15
regulation to the head of the unit. 16

(3) THE ACTION OF THE PRO CUREMENT OFFICER UND ER THIS 17
SUBSECTION SHALL BE THE FINAL ACTION OF THE UNIT. 18

[(d) (G) The person who reviews a contract claim under subsection (c) (F) of this 19
section shall: 20

(1) investigate the contract claim; and 21

(2) give the contractor written notice of a resolution of the contract claim: 22

(i) within 90 days after receiving the contract claim or a longer 23
period to which the parties agree, if the amount of the contract claim is not more than the 24
amount under which the accelerated procedure may be selected before the Appeals Board; 25
or 26

(ii) for any other contract claim, within 180 days after receiving the 27
contract claim or a longer period to which the parties agree. 28

(e)] (F) (H) Recovery under a contract claim is not allowed for any expense 29
incurred: 30

HOUSE BILL 193 9

(1) more than [30] 60 days before the [required submission of a notice of a 1
claim] LAST DAY ON WHICH NO TICE OF A CLAIM IS P ERMITTED TO BE FILED under 2
subsection (a) of this section; or 3

(2) unless the time for submission of a claim is extended under subsection 4
(b) of this section, more than [120] 150 days before the [required submission of the claim] 5
LAST DAY ON WHICH NOTICE OF A CLAIM IS PERMITTED TO BE FILED. 6

[(f)] (G) (I) (1) If the unit determines that it is responsible for a portion but not 7
all of the amount claimed by the contractor, subject to the terms of the contract, the unit 8
shall pay the undisputed amount. 9

(2) Payment of the undisputed amount: 10

(i) is not an admission of the liability of the unit on the claims; and 11

(ii) does not preclude recovery of the amount paid if it subsequently 12
is determined that the determination of the unit was not correct. 13

[(g) (1)] (H) (J) A decision not to pay a contract claim is a final action for the 14
purpose of appeal to the Appeals Board. 15

[(2) The failure to reach a decision within the time required under 16
subsection (c) of this section may be deemed, at the option of the contractor, to be a decision 17
not to pay the contract claim.] 18

(I) (K) (1) THIS SUBSECTION APPLI ES TO ALL CONTRACT C LAIMS, 19
INCLUDING CLAIMS THAT ARE PENDING ADMINI STRATIVELY IN COURT ON JULY 1, 20
2026. 21

(2) PRIOR TO AUTHORIZING PAYMENT ON A CLAIM , THE 22
PROCUREMENT OFFICER SHALL REQUIRE THE CONTRACTOR TO SUPPLEMENT THE 23
CLAIM WITH A CERTIFICATION BY A SENIOR OFFICER OR GENERAL PARTNER OF THE 24
CONTRACTOR OR THE SU BCONTRACTOR, AS APPLICABLE, THAT, TO THE BEST OF 25
THAT PERSON’S KNOWLEDGE AND BELIEF: 26

(I) (1) THE CLAIM IS MADE IN GOOD FAITH; 27

(II) (2) ALL SUPPORTING DATA IS ACCURATE AND COMPLETE; 28
AND 29

(III) (3) THE AMOUNT REQUESTED ACCURATELY REFLECTS 30
THE CONTRACT CLAIM F OR WHICH THE PERSON BELIEVES THE PROCURE MENT 31
AGENCY IS LIABLE. 32

10 HOUSE BILL 193

[(h)] (J) (L) At the time of final payment, the unit shall: 1

(1) release the retainage due to the contractor; and 2

(2) pay any interest that: 3

(i) has accrued on the retainage from the time of payment of the 4
semifinal estimate; and 5

(ii) is due and payable to the contractor. 6

SECTION 2. AND BE IT FURTHER ENACTED, That it is the intent of the General 7
Assembly that: 8

(1) this Act does not apply to claims or protests arising or commencing 9
before the effective date of this Act; and 10

(2) unless mutually agreed on between a contractor and procurement unit, 11
the provisions of § 13–218(a)(9) of the State Finance and Procurement Article do not apply 12
to contracts awarded or entered into before the effective date of this Act. 13

SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 14
July October 1, 2026. 15

Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.