Maryland 2025 Regular Session

Maryland House Bill HB662 Latest Draft

Bill / Engrossed Version Filed 03/11/2025

                             
 
EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING 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. 
         *hb0662*  
  
HOUSE BILL 662 
P2   	5lr2867 
      
By: Delegates Tomlinson, Boafo, Cardin, Edelson, Embry, Hornberger, 
Hutchinson, Spiegel, and Stonko Stonko, Alston, Bagnall, Bhandari, 
Chisholm, Cullison, Guzzone, Hill, S. Johnson, Kaiser, Kerr, Kipke, Lopez, 
Martinez, M. Morgan, Pena–Melnyk, Reilly, Rosenberg, Ross, Szeliga, 
Taveras, White Holland, Woods, and Woorman 
Introduced and read first time: January 24, 2025 
Assigned to: Health and Government Operations 
Committee Report: Favorable with amendments 
House action: Adopted 
Read second time: February 27, 2025 
 
CHAPTER ______ 
 
AN ACT concerning 1 
 
Procurement – Master Contracting Indefinite Quantity Contracts – 2 
Authorization 3 
 
FOR the purpose of increasing the number of units that are authorized to adopt the master 4 
contracting method of procurement; authorizing a procurement officer to award an 5 
indefinite quantity contract under certain circumstances; requiring the Board of 6 
Public Works to adopt certain regulations relating to assignment of work; and 7 
generally relating to the use of master contracting indefinite quantity contracts for 8 
State procurement. 9 
 
BY repealing and reenacting, with amendments, 10 
 Article – State Finance and Procurement 11 
Section 13–101, 13–113, and 13–114 13–113 12 
 Annotated Code of Maryland 13 
 (2021 Replacement Volume and 2024 Supplement) 14 
 
BY adding to 15 
 Article – State Finance and Procurement 16 
 Section 13–212.2 17 
 Annotated Code of Maryland 18 
 (2021 Replacement Volume and 2024 Supplement)  19  2 	HOUSE BILL 662  
 
 
 
 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1 
That the Laws of Maryland read as follows: 2 
 
Article – State Finance and Procurement 3 
 
13–101. 4 
 
 (a) In this subtitle the following words have the meanings indicated. 5 
 
 (b) [“Designated procurement unit” means: 6 
 
 (1) the Department of General Services; 7 
 
 (2) the Department of Transportation; or 8 
 
 (3) the Department of Information Technology, only with respect to an 9 
information technology master contract executed before July 1, 2022, until the earlier of: 10 
 
 (i) the expiration date of all information technology master 11 
contracts; or 12 
 
 (ii) June 30, 2027. 13 
 
 (c)] “eMaryland Marketplace” or “eMaryland Marketplace Advantage” means the 14 
Internet–based procurement system managed by the Department of General Services. 15 
 
 [(d)] (C) “Evaluated bid price” means the price of a bid after adjustment in 16 
accordance with objective measurable criteria. 17 
 
 [(e)] (D) “Master contracting” means a streamlined procurement method that 18 
provides for the qualification of bidders and offerors for the procurement of services, 19 
supplies, or commodities. 20 
 
 [(f)] (E) (1) “Objective measurable criteria” means standards that enable the 21 
State to compare the economy, effectiveness, or value of the subject of the bids. 22 
 
 (2) “Objective measurable criteria” includes standards of reliability, 23 
operational costs, maintainability, useful life, and residual value. 24 
 
 [(g)] (F) “Pay–for–success contracting” means a performance –based 25 
procurement method through which a unit contracts with an organization to deliver 26 
services or commodities in exchange for payment based on the achievement of outcomes. 27 
 
 [(h)] (G) “Person” includes, unless the context requires otherwise: 28 
   	HOUSE BILL 662 	3 
 
 
 (1) the State; 1 
 
 (2) a county, a municipal corporation, or any other political subdivision; 2 
and 3 
 
 (3) any unit of the State government or a political subdivision. 4 
 
 [(i)] (H) “Task order” means a procurement process in which only those vendors 5 
with master contracts may compete to provide the services, supplies, or commodities under 6 
the procurement. 7 
 
13–113. 8 
 
 (a) [The designated procurement units] A UNIT may adopt master contracting, a 9 
streamlined procurement method, to provide for the qualification of an offeror in one or 10 
more categories of services, supplies, or commodities. 11 
 
 (b) If a [designated procurement] unit adopts master contracting, the master 12 
contracting method shall include: 13 
 
 (1) the categories of services, supplies, or commodities in which an offeror 14 
may submit a proposal for qualification; 15 
 
 (2) a procedure for the consideration and approval of proposals for 16 
qualification of multiple offerors in each category of services, supplies, or commodities; 17 
 
 (3) the execution of a standard contract for a specified period of time 18 
between the State and an offeror approved as a master contractor; and 19 
 
 (4) a performance evaluation procedure to be used by a unit [of the 20 
Executive Branch] to evaluate the performance of a qualified offeror that has completed 21 
work on a task order. 22 
 
 (c) (1) A unit [of the Executive Branch] that requires services, supplies, or 23 
commodities covered under a master contract may issue a solicitation for a task order to a 24 
master contractor consistent with the regulations adopted under § 13–114 of this subtitle. 25 
 
 (2) Except as provided in subsection (f) of this section, the solicitation for a 26 
task order shall include a statement of the: 27 
 
 (i) factors that will be used in evaluating a master contractor’s 28 
response; and 29 
 
 (ii) relative importance of each factor. 30 
  4 	HOUSE BILL 662  
 
 
 (d) (1) Except as provided in subsection (f) of this section, if the unit [of the 1 
Executive Branch] expects that the total cost of the services, supplies, or commodities will 2 
exceed $100,000, the unit shall issue a solicitation for a task order to all master contractors 3 
in the appropriate category established by the [designated procurement] unit. 4 
 
 (2) If the unit [of the Executive Branch] expects that the total cost of the 5 
services, supplies, or commodities will be $100,000 or less, the unit shall issue a solicitation 6 
for a task order to a minimum of six qualified master contractors or all master contractors, 7 
whichever is less, in the appropriate category established by the [designated procurement] 8 
unit. 9 
 
 (e) Except as provided in subsection (f) of this section, after a unit [of the 10 
Executive Branch] receives responses from master contractors to a solicitation for a task 11 
order, the unit shall evaluate the responses and may select a master contractor based on 12 
the response that is determined to be the most advantageous to the State considering the 13 
evaluation factors set forth in the task order. 14 
 
 (f) The requirements of subsections (c)(2), (d), and (e) of this section do not apply 15 
to a master contract for construction if the master contract: 16 
 
 (1) is awarded through a competitive process in accordance with this 17 
subtitle; and 18 
 
 (2) states: 19 
 
 (i) how task orders will be awarded; and 20 
 
 (ii) the maximum number of qualified contractors that will be 21 
awarded a master contract for construction. 22 
 
13–114. 23 
 
 (a) The Board shall adopt regulations in accordance with Title 10, Subtitle 1 of 24 
the State Government Article to establish a uniform process for the solicitation of master 25 
contracts and task orders. 26 
 
 (b) Each [designated procurement] unit shall ensure compliance with the 27 
regulations set forth in subsection (a) of this section. 28 
 
13–212.2. 29 
 
 (A) THIS SECTION APPLIES ONLY TO A PROCUREMEN T AWARDED THROUGH 30 
A PROCUREMENT METHOD LISTED IN § 13–102(A)(1) THROUGH (4) OR (6) THROUGH 31 
(11) OF THIS TITLE AND TH AT RESULTS IN MULTIP LE CONTRACTS BEING A WARDED.  32 
   	HOUSE BILL 662 	5 
 
 
 (B) SUBJECT TO THE REQUIR EMENTS OF THIS SECTI ON, A PROCUREMENT 1 
OFFICER MAY AWARD AN INDEFINITE QUANTITY CONTRACT. 2 
 
 (C) (1) AN INDEFINITE QUANTIT Y CONTRACT SHALL INC LUDE AN 3 
AGREEMENT ON : 4 
 
 (I) THE SPECIFIC SCOPE O F SERVICES TO BE PER FORMED;  5 
 
 (II) THE MAXIMUM HOURS OR FEES APPROVED FOR TH E 6 
SPECIFIC WORK ASSIGNMENT ; AND  7 
 
 (III) OTHER MATTERS PERTIN ENT TO THE WORK ASSI GNMENT. 8 
 
 (2) THE PROCUREMENT OFFIC ER AND CONTRACTOR SH ALL EXECUTE 9 
EACH WORK ORDER SUBJ ECT TO THE TERMS OF THE INDEFINITE QUANT ITY 10 
CONTRACT. 11 
 
 (3) EACH SIGNED WORK ORDE R SHALL BECOME PART OF THE 12 
INDEFINITE QUANTITY CONTRACT.  13 
 
 (D) SUBJECT TO SUBSECTION (E) OF THIS SECTION , THE BOARD SHALL 14 
ADOPT REGULATIONS ES TABLISHING METHODS O F ASSIGNING WORK UND ER AN 15 
INDEFINITE QUANTITY CONTRACT, INCLUDING:  16 
 
 (1) ASSIGNMENT BY RIGHT OF FIRST REFUSAL IN THE ORDER OF 17 
RANKING OF CONTRACT AWARDS; AND 18 
 
 (2) ROTATION AMONG CONTR ACTORS.  19 
 
 (E) IF A METHOD OF ASSIGN ING WORK ESTABLISHED UNDER SUBSECTION 20 
(D) OF THIS SECTION CONF LICTS WITH A FEDERAL FUNDING REQUIREMENT ON A 21 
PROJECT, THE FEDERAL METHOD F OR ASSIGNING WORK SH ALL BE USED.  22 
 
 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 23 
October 1, 2025.  24