Md. Code, State Finance and Procurement § 13-215
This is the official text of Md. Code, State Finance and Procurement § 13-215, part of Maryland’s Code, State Finance and Procurement — governs the state budget and government contracting.
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§13–215.
Official statutory text
(a) A unit may not enter into a cost-reimbursement contract unless the procurement officer determines that:
(1) a cost-reimbursement contract is likely to be less costly to the State than any other type of contract; or
(2) except for leases of real property, the kind or quality of procurement that the unit requires could not be obtained practicably under any other type of contract.
(b) A unit may not enter into a procurement contract that is wholly or partly a cost-reimbursement contract unless the procurement officer determines that the accounting system of the contractor:
(1) will allow timely development of all necessary cost data in the form required by the specific type of procurement contract under consideration; and
(2) is adequate to allocate costs in accordance with generally accepted accounting principles.
(c) A cost-reimbursement contract shall provide that costs, including costs for subcontractors, will be reimbursed only if the costs are allowable and allocable under:
(1) the procurement contract; or
(2) the regulations of the Board on cost principles.
(d) A contractor under a cost-reimbursement contract shall give notice to and, as required under the contract, obtain approval from a procurement officer before the contractor enters into:
(1) a cost-reimbursement subcontract; or
(2) any subcontract involving more than:
(i) $25,000; or
(ii) 5% of the estimated cost of the procurement contract.
(1) a cost-reimbursement contract is likely to be less costly to the State than any other type of contract; or
(2) except for leases of real property, the kind or quality of procurement that the unit requires could not be obtained practicably under any other type of contract.
(b) A unit may not enter into a procurement contract that is wholly or partly a cost-reimbursement contract unless the procurement officer determines that the accounting system of the contractor:
(1) will allow timely development of all necessary cost data in the form required by the specific type of procurement contract under consideration; and
(2) is adequate to allocate costs in accordance with generally accepted accounting principles.
(c) A cost-reimbursement contract shall provide that costs, including costs for subcontractors, will be reimbursed only if the costs are allowable and allocable under:
(1) the procurement contract; or
(2) the regulations of the Board on cost principles.
(d) A contractor under a cost-reimbursement contract shall give notice to and, as required under the contract, obtain approval from a procurement officer before the contractor enters into:
(1) a cost-reimbursement subcontract; or
(2) any subcontract involving more than:
(i) $25,000; or
(ii) 5% of the estimated cost of the procurement contract.
Status: in_force · Read it on the official government site
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