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.
*sb0213*

SENATE BILL 213
P2 6lr0806
(PRE–FILED) CF HB 193
By: Senator Lewis Young
Requested: September 9, 2025
Introduced and read first time: January 14, 2026
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 16, 2026

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 payment on a claim; altering the procedures for 15
reviewing and making a certain determination related to a certain contract claim; 16
and generally relating to State procurement procedures. 17

BY adding to 18
Article – State Finance and Procurement 19
Section 13–104(h) 20
Annotated Code of Maryland 21
(2021 Replacement Volume and 2025 Supplement) 22

2 SENATE BILL 213

BY repealing and reenacting, with amendments, 1
Article – State Finance and Procurement 2
Section 13–212.1(b), 13–218(a), 15–112(b)(1), 15–218, and 15–219 3
Annotated Code of Maryland 4
(2021 Replacement Volume and 2025 Supplement) 5

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That the Laws of Maryland read as follows: 7

Article – State Finance and Procurement 8

13–104. 9

(H) (1) AN UNSUCCESSFUL OFFER OR MAY SUBMIT A REQUEST TO THE 10
PROCUREMENT OFFICER FOR A DEBRIEFING OF THE RECOMMENDED CONT RACT 11
AWARD. 12

(2) AFTER RECEIVING A REQ UEST FOR A DEBRIEFIN G UNDER 13
PARAGRAPH (1) OF THIS SUBSECTION , THE PROCUREMENT OFFI CER SHALL 14
PROVIDE THE DEBRIEFING: 15

(I) AS SOON AS IS FEASIBLE AFTER RECEIVING THE REQUEST; 16
AND 17

(II) BEFORE THE RECOMMEND ED CONTRACT AWARD IS 18
PRESENTED FOR APPROVAL TO THE HEAD OF THE UNIT OR THE BOARD. 19

(3) EXCEPT FOR INFORMATIO N REASONABLY DETERMI NED BY THE 20
PROCUREMENT OFFICER TO BE CONFIDENTIAL , PROPRIETARY, OR PRIVILEGED, A 21
DEBRIEFING REQUIRED UNDER PARAGRAPH (1) OF THIS SUBSECTION S HALL 22
INCLUDE ALL RELEVANT INFORMATION THAT HAS BEEN REQUESTED. 23

(4) THE OFFICE OF STATE PROCUREMENT SHALL EST ABLISH 24
GUIDELINES AND PROCEDURES FOR DEBRIEFINGS, INCLUDING A DEADLINE FOR AN 25
UNSUCCESSFUL OFFEROR TO SUBMIT A REQUEST FOR A DEBRIEFING. 26

13–212.1. 27

(b) For purposes of subsection (a) of this section, assisting in the drafting of 28
specifications, an invitation for bids, or a request for proposals for a pr ocurement does not 29
include: 30

(1) providing descriptive literature, such as catalogue sheets, brochures, 31
technical data sheets, or standard specification “samples”, whether requested by an 32
executive unit or provided unsolicited; 33

SENATE BILL 213 3

(2) submitting written or oral comments on a specification prepared by an 1
executive unit or on a solicitation for a bid or proposal when comments are solicited from 2
two or more persons as part of a request for information or a prebid or preproposal process; 3

(3) providing specifications for a sole source procurement made in 4
accordance with § 13–107 of this title; 5

(4) providing architectural and engineering services for: 6

(i) programming, master planning, or other project planning 7
services; or 8

(ii) the design of a construction project if: 9

1. the design services do not involve lead or prime design 10
responsibilities or construction phase responsibilities on behalf of the State; and 11

2. A. the anticipated value of the procurement contract at 12
the time of advertisement is at least $2,500,000 and not more than $100,000,000; or 13

B. regardless of the amount of the procurement contract, the 14
payment to the individual or person for the design services does not exceed $500,000; [or] 15

(5) for a procurement of health , human, social, or educational services, 16
comments solicited from two or more persons as part of a request for information, including 17
written or oral comments on a draft specification, an invitation for bids, or a request for 18
proposals; OR 19

(6) PROVIDING INFORMATION THAT DOES NOT PROVIDE AN UNF AIR 20
COMPETITIVE ADVANTAGE FOR ANY BIDDER OR OFFEROR. 21

13–218. 22

(a) Each procurement contract shall include clauses covering: 23

(1) termination for default; 24

(2) termination wholly or partly by the State for its convenience if the head 25
of the primary procurement unit determines that termination is appropriate; 26

(3) variations that occur between estimated and actual quantities of work 27
in a procurement contract; 28

(4) liquidated damages, as appropriate; 29

(5) specified excuses for nonperformance; 30

4 SENATE BILL 213

(6) except for real property leases, the unilateral right of the State to order 1
in writing: 2

(i) changes in the work, if the changes are within the scope of the 3
procurement contract; and 4

(ii) a temporary stop or delay in performance; 5

(7) the obligation of the contractor to comply with the political contribution 6
reporting requirements under Title 14 of the Election Law Article, to which the contractor 7
may be subject as required under § 17–402 of this article; [and] 8

(8) nonvisual access for information technology as required under § 9
3A–312 of this article; AND 10

(9) A REQUIREMENT FOR THE AUTHORIZATION OF A CONTRACTOR TO 11
REQUEST A CONTRACT MODIFICATION TO PROVIDE AN EQUITABLE ADJUSTMENT TO 12
COMPENSATE THE C ONTRACTOR FOR INCREA SES IN THE COST OF A ND TIME FOR 13
CONTRACT PERFORMANCE DUE TO CHANGES IN STATE LAW APPLIED BY THE 14
PROCUREMENT UNIT. 15

15–112. 16

(b) (1) Except as provided in paragraphs (2) and (3) of this subsection, a unit 17
may not require a prime contractor and a prime contractor may not require a subcontractor 18
to begin change order work under a contract until the procurement officer for the unit issues 19
a written change order that specifies whether the work is to proceed, in compliance WITH 20
ANY CHANGES IN STATE LAW OR REGULATION OR with the terms of the contract, on: 21

(i) an agreed–to price which may include a preestablished catalog 22
or unit prices based on local prevailing wage rates and equipment and material costs for 23
each task required for the change order as included in the bid documents at the time of bid; 24

(ii) a force account; 25

(iii) a construction change directive; or 26

(iv) a time and materials basis. 27

15–218. 28

(a) [Except as provided under § 15–219 of this subtitle, a] A procurement officer 29
who receives a TIMELY protest [or a contract claim from a contractor ] shall comply with 30
this section. 31

SENATE BILL 213 5

(b) (1) On receipt of a TIMELY protest [or contract claim from a contractor], a 1
procurement officer: 2

(i) shall review the substance of the protest [or contract claim]; 3

(ii) may request additional information or substantiation through an 4
appropriate procedure; 5

(iii) may discuss with interested parties and, if appropriate, may 6
conduct negotiations with the person initiating the protest [or contract claim]; and 7

(iv) shall comply with any applicable regulations. 8

(2) Unless clearly inappropriate, the procurement officer shall seek the 9
advice of the Office of the Attorney General ON ANY LEGAL ISSUES RAISED IN THE 10
PROTEST. 11

(c) (1) Subject to subsection (b) of this section and consistent with the State 12
budget and other applicable laws, the procurement officer shall: 13

(i) resolve the protest [or contract claim by agreement of the 14
parties]; 15

(ii) wholly or partly deny the protest [or contract claim]; or 16

(iii) wholly or partly grant the relief sought by the person who 17
submitted the protest [or contract claim]. 18

(2) The procurement officer promptly shall send the decision in writing to 19
the reviewing authority. 20

(d) Unless otherwise provided by regulation, the decision of the procurement 21
officer shall be reviewed promptly by: 22

(1) the head of the unit OR THE HEAD’S DESIGNEE; and 23

(2) the head of the principal department or other equivalent unit of which 24
the unit is a part OR THE HEAD’S DESIGNEE. 25

(e) [(1) Except as provided under paragraph (3) of this subsection, the 26
reviewing authority shall approve, disapprove, or modify the decisio n of the procurement 27
officer within 180 days after receiving the contract claim or a longer period to which the 28
parties agree. 29

(2)] The action of the [reviewing authority under this subsection ] 30
PROCUREMENT OFFICER shall be the final action of the unit. 31
6 SENATE BILL 213

[(3) The reviewing authority may remand the proceeding with instructions 1
to the procurement officer. 2

(4) On remand, the procurement officer shall proceed under subsection (b) 3
of this section in accordance with those instructions.] 4

(f) (1) A decision [not to pay a contract claim] TO DENY A PROTEST is a final 5
action for the purpose of appeal to the Appeals Board. 6

(2) The failure to [reach] ISSUE a decision OR ISSUE A WRITTEN NOTICE 7
OF THE ANTICIPATED DECISION DATE [within the time required under subsection (e) of 8
this section] ON THE PROTEST WITHIN 60 90 DAYS AFTER RECEIPT may be deemed, at 9
the SOLE option of the [contractor, to be a decision not to pay the contract claim ] 10
PROTESTOR, TO BE A DECISION TO DENY THE PROTEST. 11

15–219. 12

(a) [Except to the extent a shorter period is prescribed by regulation governing 13
differing site conditions, a] A contractor shall file a written notice of a claim relating to a 14
procurement contract [for construction] within [30] 60 days after [the basis for the claim 15
is known or should have been known] THE LATER OF: 16

(1) FOR REQUESTS FOR EQUITABLE ADJUSTMENTS, THE LATER OF: 17

(I) A UNIT DENYING A REQUEST FOR EQUITABLE ADJUSTMENT; 18
OR 19

(2) (II) ONE OF THE PARTIES REACHING NOTIFYING THE OTHER 20
PARTY IN WRITING THAT THE NOTIFYING P ARTY DETERMINED THE DISCUSSIONS 21
REACHED AN IMPASSE IN DISCUSSIONS ATTEMPTING TO RESOLV E THEIR 22
DISAGREEMENT REGARDING THE REQUEST.; AND 23

(2) FOR OTHER CLAIMS , THE BASIS FOR THE CL AIM IS KNOWN OR 24
SHOULD HAVE BEEN KNOWN. 25

(b) Unless extended by the unit, within 90 days after submitting a notice of a 26
contract claim under a procurement contract [for construction], a contractor shall submit 27
to the unit a written explanation that states: 28

(1) the amount of the contract claim; 29

(2) the facts on which the contract claim is based; and 30

SENATE BILL 213 7

(3) all relevant data and correspondence that may substantiate the 1
contract claim. 2

(C) (1) ON RECEIPT OF A TIMEL Y CONTRACT CLAIM FRO M A 3
CONTRACTOR, A PROCUREMENT OFFICER: 4

(I) SHALL REVIEW THE SUBSTANCE OF THE CONTRACT CLAIM; 5

(II) MAY REQUEST ADDITION AL INFORMATION OR 6
SUBSTANTIATION THROUGH AN APPROPRIATE PROCEDURE; 7

(III) MAY CONDUCT NEGOTIAT IONS WITH THE CONTRA CTOR 8
INITIATING THE CONTRACT CLAIM; AND 9

(IV) SHALL COMPLY WITH ANY APPLICABLE REGULATIONS. 10

(2) UNLESS CLEARLY INAPPROPRIATE, THE PROCUREMENT OFFICER 11
SHALL SEEK THE ADVIC E OF THE OFFICE OF THE ATTORNEY GENERAL ON ANY 12
LEGAL ISSUES. 13

(D) SUBJECT TO SUBSECTION (C) OF THIS SECTION AND CONSISTENT WITH 14
THE STATE BUDGET AND OTHE R APPLICABLE LAWS, THE PROCUREMENT OFFICER 15
SHALL: 16

(1) RESOLVE THE CONTRACT CLAIM BY AGREEMENT OF THE PARTIES; 17

(2) WHOLLY OR PARTLY DENY THE CONTRACT CLAIM; OR 18

(3) WHOLLY OR PARTLY GRA NT THE RELIEF SOUGHT BY THE 19
CLAIMANT. 20

[(c)] (E) (1) EXCEPT AS PROVIDED UNDER PARAG RAPH (3) OF THIS 21
SUBSECTION, FOR A CONTRACT OTHER THAN A CONSTRUCTION CONTRACT, THE 22
REVIEWING AUTHORITY SHALL APPROVE, DISAPPROVE, OR MODIFY THE DECISI ON 23
OF THE PROCUREMENT O FFICER WITHIN 180 DAYS AFTER RECEIVING THE 24
CONTRACT CLAIM OR A LONGER PERIOD TO WHICH THE PARTIES AGREE. 25

(2) THE ACTION OF THE REV IEWING AUTHORITY UND ER THIS 26
SUBSECTION SHALL BE THE FINAL ACTION OF THE UNIT. 27

(3) (I) THE REVIEWING AUTHORI TY MAY REMAND THE 28
PROCEEDING WITH INSTRUCTIONS TO THE PROCUREMENT OFFICER. 29

8 SENATE BILL 213

(II) ON REMAND , IN ACCORDANCE WITH T HE REVIEWING 1
AUTHORITY’S INSTRUCTIONS , THE PROCUREMENT OFFI CER SHALL PROCEED IN 2
ACCORDANCE WITH SUBSECTION (C) OF THIS SECTION. 3

(F) (1) Subject to paragraph (2) of this subsection, FOR A CONSTRUCTION 4
CONTRACT, the head of the unit engaged in procurement [of the construction ] OR THE 5
HEAD’S DESIGNEE shall review the contract claim AND THE DECISION OF THE 6
PROCUREMENT OFFICER. 7

(2) If the unit is part of a principal department or other equivalent unit, 8
the Secretary of the principal department or the equivalent official OR THE SECRETARY’S 9
DESIGNEE OR THE OFFICIAL ’S DESIGNEE shall review the contract claim AND THE 10
DECISION OF THE PROC UREMENT OFFICER , unless review has been delegated by 11
regulation to the head of the unit. 12

(3) THE ACTION OF THE PRO CUREMENT OFFICER UND ER THIS 13
SUBSECTION SHALL BE THE FINAL ACTION OF THE UNIT. 14

[(d) (G) The person who reviews a contract claim under subsection (c) (F) of this 15
section shall: 16

(1) investigate the contract claim; and 17

(2) give the contractor written notice of a resolution of the contract claim: 18

(i) within 90 days after receiving the contract claim or a longer 19
period to which the parties agree, if the amount of the contract claim is not more than the 20
amount under which the accelerated procedure may be selected before the Appeals Board; 21
or 22

(ii) for any other contract claim, within 180 days after receiving the 23
contract claim or a longer period to which the parties agree. 24

(e)] (F) (H) Recovery under a contract claim is not allowed for any expense 25
incurred: 26

(1) more than [30] 60 days before the [required submission of a notice of a 27
claim] LAST DAY ON WHICH NO TICE OF A CLAIM IS P ERMITTED TO BE FILED under 28
subsection (a) of this section; or 29

(2) unless the time for submission of a claim is extended under subsection 30
(b) of this section, more than [120] 150 days before the [required submission of the claim] 31
LAST DAY ON WHICH NOTICE OF A CLAIM IS PERMITTED TO BE FILED. 32

SENATE BILL 213 9

[(f)] (G) (I) (1) If the unit determines that it is responsible for a portion but not 1
all of the amount claimed by the contractor, subject to the terms of the contract, the unit 2
shall pay the undisputed amount. 3

(2) Payment of the undisputed amount: 4

(i) is not an admission of the liability of the unit on the claims; and 5

(ii) does not preclude recovery of the amount paid if it subsequently 6
is determined that the determination of the unit was not correct. 7

[(g) (1)] (H) (J) A decision not to pay a contract claim is a final action for the 8
purpose of appeal to the Appeals Board. 9

[(2) The failure to reach a decision within the time required under 10
subsection (c) of this section may be deemed, at the option of the contractor, to be a decision 11
not to pay the contract claim.] 12

(I) (K) (1) THIS SUBSECTION APPLI ES TO ALL CONTRACT C LAIMS, 13
INCLUDING CLAIMS THAT ARE PENDING ADMINI STRATIVELY IN COURT ON JULY 1, 14
2026. 15

(2) PRIOR TO AUTHORIZING PAYMENT ON A CLAIM , THE 16
PROCUREMENT OFFICER SHALL REQUIRE THE CONTRACTOR TO SUPPLEMENT THE 17
CLAIM WITH A CERTIFICATION BY A SENIOR OFFICER OR GENERAL PARTNER OF THE 18
CONTRACTOR OR THE SU BCONTRACTOR, AS APPLICABLE, THAT, TO THE BEST OF 19
THAT PERSON’S KNOWLEDGE AND BELIEF: 20

(I) (1) THE CLAIM IS MADE IN GOOD FAITH; 21

(II) (2) ALL SUPPORTING DATA IS ACCURATE AND COMPLETE; 22
AND 23

(III) (3) THE AMOUNT REQUESTED ACCURATELY REFLECTS 24
THE CONTRACT CLAIM F OR WHICH THE PERSON BELIEVES THE PROCURE MENT 25
AGENCY IS LIABLE. 26

[(h)] (J) (L) At the time of final payment, the unit shall: 27

(1) release the retainage due to the contractor; and 28

(2) pay any interest that: 29

(i) has accrued on the retainage from the time of payment of the 30
semifinal estimate; and 31
10 SENATE BILL 213

(ii) is due and payable to the contractor. 1

SECTION 2. AND BE IT FURTHER ENACTED, That it is the intent of the General 2
Assembly that: 3

(1) this Act does not apply to claims or protests arising or commencing 4
before the effective date of this Act; and 5

(2) unless mutually agreed on between a contractor and procurement unit, 6
the provisions of § 13–218(a)(9) of the State Finance and Procurement Article do not apply 7
to contracts awarded or entered into before the effective date of this Act. 8

SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 9
July October 1, 2026. 10

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