Maryland 2025 Regular Session

Maryland House Bill HB662 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3	3		EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4		[Brackets] indicate matter deleted from existing law.
5		-	Underlining indicates amendments to bill.
6		-	Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7		-	amendment.
8	5		hb0662
9	6
10	7		HOUSE BILL 662
11	8		P2 5lr2867
12	9
13	10		By: Delegates Tomlinson, Boafo, Cardin, Edelson, Embry, Hornberger,
14		-	Hutchinson, Spiegel, and Stonko Stonko, Alston, Bagnall, Bhandari,
15		-	Chisholm, Cullison, Guzzone, Hill, S. Johnson, Kaiser, Kerr, Kipke, Lopez,
16		-	Martinez, M. Morgan, Pena–Melnyk, Reilly, Rosenberg, Ross, Szeliga,
17		-	Taveras, White Holland, Woods, and Woorman
	11	+	Hutchinson, Spiegel, and Stonko
18	12		Introduced and read first time: January 24, 2025
19	13		Assigned to: Health and Government Operations
20		-	Committee Report: Favorable with amendments
21		-	House action: Adopted
22		-	Read second time: February 27, 2025
23	14
24		-	~~CHAPTER ______~~
	15	+	A BILL ENTITLED
25	16
26	17		AN ACT concerning 1
27	18
28		-	Procurement – Master Contracting Indefinite Quantity Contracts – 2
29		-	Authorization 3
	19	+	Procurement – Master Contracting – Authorization 2
30	20
31		-	FOR the purpose of increasing the number of units that are authorized to adopt the master 4
32		-	contracting method of procurement; authorizing a procurement officer to award an 5
33		-	indefinite quantity contract under certain circumstances; requiring the Board of 6
34		-	Public Works to adopt certain regulations relating to assignment of work; and 7
35		-	generally relating to the use of master contracting indefinite quantity contracts for 8
36		-	State procurement. 9
	21	+	FOR the purpose of increasing the number of units that are authorized to adopt the master 3
	22	+	contracting method of procurement; and generally relating to the use of master 4
	23	+	contracting for State procurement. 5
37	24
38		-	BY repealing and reenacting, with amendments, 10
39		-	Article – State Finance and Procurement 11
40		-	Section 13–101, 13–113, and 13–114 ~~13–113 12~~
41		-	Annotated Code of Maryland 13
42		-	(2021 Replacement Volume and 2024 Supplement) 14
	25	+	BY repealing and reenacting, with amendments, 6
	26	+	Article – State Finance and Procurement 7
	27	+	Section 13–101, 13–113, and 13–114 8
	28	+	Annotated Code of Maryland 9
	29	+	(2021 Replacement Volume and 2024 Supplement) 10
43	30
44		-	BY adding to 15
45		-	Article – State Finance and Procurement 16
46		-	Section 13–212.2 17
47		-	Annotated Code of Maryland 18
48		-	(2021 Replacement Volume and 2024 Supplement) 19 2 HOUSE BILL 662
	31	+	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
	32	+	That the Laws of Maryland read as follows: 12
	33	+
	34	+	Article – State Finance and Procurement 13
	35	+
	36	+	13–101. 14
	37	+
	38	+	(a) In this subtitle the following words have the meanings indicated. 15
	39	+
	40	+	(b) [“Designated procurement unit” means: 16
	41	+
	42	+	(1) the Department of General Services; 17
	43	+
	44	+	(2) the Department of Transportation; or 18
	45	+
	46	+	(3) the Department of Information Technology, only with respect to an 19
	47	+	information technology master contract executed before July 1, 2022, until the earlier of: 20 2 HOUSE BILL 662
49	48
50	49
51	50
52		-	~~SECTION 1. BE IT ENACTED BY~~ THE ~~GENERAL ASSEMBLY~~ OF ~~MARYLAND,~~ 1
53		-	~~That the Laws of Maryland read as follows:~~ 2
	51	+	(i) the expiration date of all information technology master 1
	52	+	contracts; or 2
54	53
55		-	~~Article – State Finance and Procurement~~ 3
	54	+	(ii) June 30, 2027. 3
56	55
57		-	13–101. 4
	56	+	(c)] “eMaryland Marketplace” or “eMaryland Marketplace Advantage” means the 4
	57	+	Internet–based procurement system managed by the Department of General Services. 5
58	58
59		-	(a) In this subtitle the following words have the meanings indicated. 5
	59	+	[(d)] (C) “Evaluated bid price” means the price of a bid after adjustment in 6
	60	+	accordance with objective measurable criteria. 7
60	61
61		-	(b) [“Designated procurement unit” means: 6
	62	+	[(e)] (D) “Master contracting” means a streamlined procurement method that 8
	63	+	provides for the qualification of bidders and offerors for the procurement of services, 9
	64	+	supplies, or commodities. 10
62	65
63		-	(1) the Department of General Services; 7
	66	+	[(f)] (E) (1) “Objective measurable criteria” means standards that enable the 11
	67	+	State to compare the economy, effectiveness, or value of the subject of the bids. 12
64	68
65		-	(2) the Department of Transportation; or 8
	69	+	(2) “Objective measurable criteria” includes standards of reliability, 13
	70	+	operational costs, maintainability, useful life, and residual value. 14
66	71
67		-	(3) the Department of Information Technology, only with respect to an 9
68		-	information technology master contract executed before July 1, 2022, until the earlier of: 10
	72	+	[(g)] (F) “Pay–for–success contracting” me ans a performance –based 15
	73	+	procurement method through which a unit contracts with an organization to deliver 16
	74	+	services or commodities in exchange for payment based on the achievement of outcomes. 17
69	75
70		-	(i) the expiration date of all information technology master 11
71		-	contracts; or 12
	76	+	[(h)] (G) “Person” includes, unless the context requires otherwise: 18
72	77
73		-	(ii) ~~June 30,~~ ~~2027. 13~~
	78	+	(1) the State; 19
74	79
75		-	(c)~~] “eMaryland~~ ~~Marketplace”~~ or ~~“eMaryland Marketplace Advantage”~~ ~~means the 14~~
76		-	~~Internet–based procurement system managed by the Department of General Services. 15~~
	80	+	(2) a county, a municipal corporation, or any other political subdivision; 20
	81	+	and 21
77	82
78		-	[(d)] (C) “Evaluated bid price” means the price of a bid after adjustment in 16
79		-	accordance with objective measurable criteria. 17
	83	+	(3) any unit of the State government or a political subdivision. 22
80	84
81		-	[(e)] (D) “~~Master contracting~~” means a ~~streamlined~~ procurement ~~method that 18~~
82		-	~~provides for~~ the ~~qualification of bidders and offerors for the procurement of~~ services, 19
83		-	~~supplies, or commodities~~. 20
	85	+	[(i)] (H) “Task order” means a procurement process in which only those vendors 23
	86	+	with master contracts may compete to provide the services, supplies, or commodities under 24
	87	+	the procurement. 25
84	88
85		-	[(f)] (E) (1) “Objective measurable criteria” means standards that enable the 21
86		-	State to compare the economy, effectiveness, or value of the subject of the bids. 22
	89	+	13–113. 26
87	90
88		-	(2) “Objective measurable criteria” includes standards of reliability, 23
89		-	operational costs, maintainability, useful life, and residual value. 24
90		-
91		-	[(g)] (F) “Pay–for–success contracting” means a performance –based 25
92		-	procurement method through which a unit contracts with an organization to deliver 26
93		-	services or commodities in exchange for payment based on the achievement of outcomes. 27
94		-
95		-	[(h)] (G) “Person” includes, unless the context requires otherwise: 28
	91	+	(a) [The designated procurement units] A UNIT may adopt master contracting, a 27
	92	+	streamlined procurement method, to provide for the qualification of an offeror in one or 28
	93	+	more categories of services, supplies, or commodities. 29
96	94		HOUSE BILL 662 3
97	95
98	96
99		-	(1) the State; 1
	97	+	(b) If a [designated procurement] unit adopts master contracting, the master 1
	98	+	contracting method shall include: 2
100	99
101		-	(2) ~~a county~~, ~~a municipal corporation~~, or ~~any other political subdivision;~~ 2
102		-	~~and 3~~
	100	+	(1) the categories of services, supplies, or commodities in which an offeror 3
	101	+	may submit a proposal for qualification; 4
103	102
104		-	(3) any unit of the State government or a political subdivision. 4
	103	+	(2) a procedure for the consideration and approval of proposals for 5
	104	+	qualification of multiple offerors in each category of services, supplies, or commodities; 6
105	105
106		-	[(i)] (H) “Task order” means a procurement process in which only those vendors 5
107		-	with master contracts may compete to provide the services, supplies, or commodities under 6
108		-	the procurement. 7
	106	+	(3) the execution of a standard contract for a specified period of time 7
	107	+	between the State and an offeror approved as a master contractor; and 8
109	108
110		-	13–113. 8
	109	+	(4) a performance evaluation procedure to be used by a unit [of the 9
	110	+	Executive Branch] to evaluate the performance of a qualified offeror that has completed 10
	111	+	work on a task order. 11
111	112
112		-	(a) ~~[The designated procurement units]~~ A UNIT ~~may adopt master contracting~~, ~~a 9~~
113		-	~~streamlined procurement method,~~ to ~~provide for the qualification of an offeror in one or 10~~
114		-	~~more categories~~ of ~~services, supplies, or commodities~~. 11
	113	+	(c) (1) A unit [of the Executive Branch] that requires services, supplies, or 12
	114	+	commodities covered under a master contract may issue a solicitation for a task order to a 13
	115	+	master contractor consistent with the regulations adopted under § 13–114 of this subtitle. 14
115	116
116		-	(b) ~~If a [designated~~ ~~procurement] unit adopts master contracting~~, the ~~master 12~~
117		-	~~contracting method~~ shall include: 13
	117	+	(2) Except as provided in subsection (f) of this section, the solicitation for a 15
	118	+	task order shall include a statement of the: 16
118	119
119		-	(1) ~~the categories of services,~~ ~~supplies, or commodities~~ in ~~which an offeror 14~~
120		-	~~may submit a proposal for qualification~~; 15
	120	+	(i) factors that will be used in evaluating a master contractor’s 17
	121	+	response; and 18
121	122
122		-	(2) a procedure for the consideration and approval of proposals for 16
123		-	qualification of multiple offerors in each category of services, supplies, or commodities; 17
	123	+	(ii) relative importance of each factor. 19
124	124
125		-	(3) the execution of a standard contract for a specified period of time 18
126		-	between the State and an offeror approved as a master contractor; and 19
	125	+	(d) (1) Except as provided in subsection (f) of this section, if the unit [of the 20
	126	+	Executive Branch] expects that the total cost of the services, supplies, or commodities will 21
	127	+	exceed $100,000, the unit shall issue a solicitation for a task order to all master contractors 22
	128	+	in the appropriate category established by the [designated procurement] unit. 23
127	129
128		-	(4) a performance evaluation procedure to be used by a unit [of the 20
129		-	Executive Branch] to evaluate the performance of a qualified offeror that has completed 21
130		-	work on a task order. 22
	130	+	(2) If the unit [of the Executive Branch] expects that the total cost of the 24
	131	+	services, supplies, or commodities will be $100,000 or less, the unit shall issue a solicitation 25
	132	+	for a task order to a minimum of six qualified master contractors or all master contractors, 26
	133	+	whichever is less, in the appropriate category established by the [designated procurement] 27
	134	+	unit. 28
131	135
132		-	(c) (1) A unit [of the Executive Branch] that requires services, supplies, or 23
133		-	commodities covered under a master contract may issue a solicitation for a task order to a 24
134		-	master contractor consistent with the regulations adopted under § 13–114 of this subtitle. 25
135		-
136		-	(2) Except as provided in subsection (f) of this section, the solicitation for a 26
137		-	task order shall include a statement of the: 27
138		-
139		-	(i) factors that will be used in evaluating a master contractor’s 28
140		-	response; and 29
141		-
142		-	(ii) relative importance of each factor. 30
	136	+	(e) Except as provided in subsection (f) of this section, after a unit [of the 29
	137	+	Executive Branch] receives responses from master contractors to a solicitation for a task 30
	138	+	order, the unit shall evaluate the responses and may select a master contractor based on 31
	139	+	the response that is determined to be the most advantageous to the State considering the 32
	140	+	evaluation factors set forth in the task order. 33
143	141		4 HOUSE BILL 662
144	142
145	143
146		-	(d) (1) Except as provided in subsection (f) of this section, if the unit [of the 1
147		-	Executive Branch] expects that the total cost of the services, supplies, or commodities will 2
148		-	exceed $100,000, the unit shall issue a solicitation for a task order to all master contractors 3
149		-	in the appropriate category established by the [designated procurement] unit. 4
	144	+	(f) The requirements of subsections (c)(2), (d), and (e) of this section do not apply 1
	145	+	to a master contract for construction if the master contract: 2
150	146
151		-	(2) If the unit [of the Executive Branch] expects that the total cost of the 5
152		-	services, supplies, or commodities will be $100,000 or less, the unit shall issue a solicitation 6
153		-	for a task order to a minimum of six qualified master contractors or all master contractors, 7
154		-	whichever is less, in the appropriate category established by the [designated procurement] 8
155		-	unit. 9
	147	+	(1) is awarded through a competitive process in accordance with this 3
	148	+	subtitle; and 4
156	149
157		-	(e) Except as provided in subsection (f) of this section, after a unit [of the 10
158		-	Executive Branch] receives responses from master contractors to a solicitation for a task 11
159		-	order, the unit shall evaluate the responses and may select a master contractor based on 12
160		-	the response that is determined to be the most advantageous to the State considering the 13
161		-	evaluation factors set forth in the task order. 14
	150	+	(2) states: 5
162	151
163		-	(f) The requirements of subsections (c)(2), (d), and (e) of this section do not apply 15
164		-	to a master contract for construction if the master contract: 16
	152	+	(i) how task orders will be awarded; and 6
165	153
166		-	(1) ~~is awarded through a competitive process in accordance with this 17~~
167		-	~~subtitle; and 18~~
	154	+	(ii) the maximum number of qualified contractors that will be 7
	155	+	awarded a master contract for construction. 8
168	156
169		-	~~(2) states: 19~~
	157	+	13–114. 9
170	158
171		-	(i) how task orders will be awarded; and 20
	159	+	(a) The Board shall adopt regulations in accordance with Title 10, Subtitle 1 of 10
	160	+	the State Government Article to establish a uniform process for the solicitation of master 11
	161	+	contracts and task orders. 12
172	162
173		-	(ii) the ~~maximum number of qualified contractors that will be 21~~
174		-	~~awarded~~ a ~~master contract for construction~~. 22
	163	+	(b) Each [designated procurement] unit shall ensure compliance with the 13
	164	+	regulations set forth in subsection (a) of this section. 14
175	165
176		-	13–114. 23
177		-
178		-	(a) The Board shall adopt regulations in accordance with Title 10, Subtitle 1 of 24
179		-	the State Government Article to establish a uniform process for the solicitation of master 25
180		-	contracts and task orders. 26
181		-
182		-	(b) Each [designated procurement] unit shall ensure compliance with the 27
183		-	regulations set forth in subsection (a) of this section. 28
184		-
185		-	13–212.2. 29
186		-
187		-	(A) THIS SECTION APPLIES ONLY TO A PROCUREMEN T AWARDED THROUGH 30
188		-	A PROCUREMENT METHOD LISTED IN § 13–102(A)(1) THROUGH (4) OR (6) THROUGH 31
189		-	(11) OF THIS TITLE AND TH AT RESULTS IN MULTIP LE CONTRACTS BEING A WARDED. 32
190		-	HOUSE BILL 662 5
191		-
192		-
193		-	(B) SUBJECT TO THE REQUIR EMENTS OF THIS SECTI ON, A PROCUREMENT 1
194		-	OFFICER MAY AWARD AN INDEFINITE QUANTITY CONTRACT. 2
195		-
196		-	(C) (1) AN INDEFINITE QUANTIT Y CONTRACT SHALL INC LUDE AN 3
197		-	AGREEMENT ON : 4
198		-
199		-	(I) THE SPECIFIC SCOPE O F SERVICES TO BE PER FORMED; 5
200		-
201		-	(II) THE MAXIMUM HOURS OR FEES APPROVED FOR TH E 6
202		-	SPECIFIC WORK ASSIGNMENT ; AND 7
203		-
204		-	(III) OTHER MATTERS PERTIN ENT TO THE WORK ASSI GNMENT. 8
205		-
206		-	(2) THE PROCUREMENT OFFIC ER AND CONTRACTOR SH ALL EXECUTE 9
207		-	EACH WORK ORDER SUBJ ECT TO THE TERMS OF THE INDEFINITE QUANT ITY 10
208		-	CONTRACT. 11
209		-
210		-	(3) EACH SIGNED WORK ORDE R SHALL BECOME PART OF THE 12
211		-	INDEFINITE QUANTITY CONTRACT. 13
212		-
213		-	(D) SUBJECT TO SUBSECTION (E) OF THIS SECTION , THE BOARD SHALL 14
214		-	ADOPT REGULATIONS ES TABLISHING METHODS O F ASSIGNING WORK UND ER AN 15
215		-	INDEFINITE QUANTITY CONTRACT, INCLUDING: 16
216		-
217		-	(1) ASSIGNMENT BY RIGHT OF FIRST REFUSAL IN THE ORDER OF 17
218		-	RANKING OF CONTRACT AWARDS; AND 18
219		-
220		-	(2) ROTATION AMONG CONTR ACTORS. 19
221		-
222		-	(E) IF A METHOD OF ASSIGN ING WORK ESTABLISHED UNDER SUBSECTION 20
223		-	(D) OF THIS SECTION CONF LICTS WITH A FEDERAL FUNDING REQUIREMENT ON A 21
224		-	PROJECT, THE FEDERAL METHOD F OR ASSIGNING WORK SH ALL BE USED. 22
225		-
226		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 23
227		-	October 1, 2025. 24
228		-
	166	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 15
	167	+	October 1, 2025. 16