Maryland

Key Agency(ies):  Maryland’s central procurement agency is the Office of State Procurement within the Department of General Services. The Office of State Procurement is led by the State Chief Procurement Officer, who is the head of all procurement for the Maryland Executive branch.

Maryland also has a Board of Public Works, composed of the Governor, Treasurer, and Comptroller, which adopts procurement regulations and approves contracts exceeding $200,000.

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Key Statute: Maryland’s procurement law is largely codified in the State Finance and Procurement Article in Titles 11 through 16 of the Maryland Annotated Code (Md. Code Ann.).

• The Maryland Annotated Code can be accessed here.

Key Regulations: The Code of Maryland Regulations (Md. Code Regs.) Title 21 implement Maryland’s procurement rules.

• The Code of Maryland Regulations can be accessed here.

Procurement Types/Highlights:

Competitive Sealed Bidding: Maryland law requires the use of competitive sealed bidding when a procurement is expected to exceed the small procurement threshold and price is the primary determining factor. Sealed bidding in Maryland requires public advertising, a deadline for bid submissions, and public bid opening. Award must be made to the lowest-priced responsive and responsible bidder.

Competitive Sealed Proposal: Maryland law provides for competitive sealed proposals when a procurement cannot be awarded solely on price or requires consideration of factors including technical approach or experience. Proposals are evaluated by a selection committee and must be evaluated using criteria published in the solicitation. Best and final offers may be solicited, and award is made to the proposal most advantageous to the state

Small Procurements: Maryland defines small procurements as under $100,000 and has established simplified acquisition methods. Agencies are delegated authority to conduct small procurements with informal quotes or limited competition. Agencies must still ensure reasonable pricing and promote competition to the extent practicable.

Bid Protests:

Regs Governing Bid Protests:

• Maryland’s bid protest procedures are governed by Md. Code Ann., State Fin. & Proc. § 15-217 and Md. Code Regs. 21.10.02.

Timeliness Rules:

• Protests must be submitted in writing to the officer responsible for the procurement.
• Protests concerning terms within a solicitation must be filed before bid opening or before the closing date for proposals.
• Protests related to an agency award decision must be filed within seven days after the protester had notice of the award decision.

Protest Process:

• The procurement officer is responsible for both fact finding and for issuing a written decision, and protests must be resolved “as expeditiously as possible.”

Appeals:

• If a vendor receives an adverse decision at the agency level, they may appeal to the Maryland State Board of Contract Appeals.
• Appeals must be filed within 10 days of the adverse agency decision.
• The MSBCA conducts de novo hearings, and they may grant relief including cancellation of contract awards and reimbursement of protest costs.

Claims:

• Maryland’s contract claims procedures are governed by Md. Code Ann., State Fin. & Proc. § 15-218.
• Contractors may submit contract claims to the officer responsible for the procurement. The officer must review the claim, may request more information from the agency and the contractor, and may engage in alternative dispute resolution to attempt to resolve the claim. Claims must be resolved at the agency within 180 days after they are filed.
• A contractor may dispute an adverse decision by an agency regarding a claim by filing an appeal to the MSBCA. Appeals must be filed within 30 days after the agency’s action. MSBCA conducts de novo hearings to resolve disputes. They may issue monetary relief, grant equitable adjustments, and interpret disputed contract terms. The MSBCA is the final administrative action available for contractors.

Suspension & Debarment:

• Maryland’s suspension and debarment procedures are governed by Md. Code Ann., State Fin. & Proc. Tit. 16.
• The Board of Public Works (BPW) is responsible for suspension and debarment. Maryland law provides for mandatory and discretionary debarment.
• Any person or entity convicted of bribery in connection with a state contract must be debarred. Other grounds for debarment include criminal offenses involving fraud, antitrust violations, and failures to perform on previous contracts.
• Debarment requires notice and an opportunity for a hearing, where the contractor may oppose the proposed action.
• The debarment period is set by BPW and is generally not less than one year.
• Suspensions in Maryland also require written notice and an opportunity for the contractor to respond.

Interesting/Distinctions: Maryland has a constitutionally established Board of Public Works (BPW) which convenes to “review and approve” several statutorily mandated projects and programs, including significant state expenditures for certain capital improvements. Md. Code Regs. § 21.02.01.05. The BPW delegates the authority to review and approve certain procurement awards under $200,000 to several designated agencies within the state government, including the Department of Budget and Management, Department of General Services, Department of Transportation, Maryland Port Administration, Department of Public Safety and Correctional Services, Department of Information Technology, and the Treasurer’s Office. Md. Code Regs. § 21.02.01.04. All procurement actions exceeding set thresholds for procurement and contracting authority must be submitted to the BPW for approval.