2686

LAWS OF MARYLAND

Ch. 775

(2) ON THE TERMINATION OF CONTRACTS FOR THE
DEFAULT OF THE CONTRACTOR; AND

(3) ON THE TERMINATION OF CONTRACTS FOR THE
CONVENIENCE OF THE STATE.

TITLE 6 COST PRINCIPLES
6-101

THE DEPARTMENT SHALL PROMULGATE REGULATIONS DIRECTED
TOWARDS DETERMINING THE REASONABLENESS OF PRICE AND
ESTABLISHING COST PRINCIPLES, BASED UPON GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES, WHICH SHALL BE USED:

(1)  AS GUIDELINES IN NEGOTIATING:

(I)  ESTIMATED COSTS OR FIXED PRICES IF THE
ABSENCE OF OPEN MARKET COMPETITION PRECLUDES THE USE OF
COMPETITIVE SEALED BIDDING;

(II)  ADJUSTMENTS FOR STATE DIRECTED
CHANGES OR MODIFICATIONS IN CONTRACT PERFORMANCE; AND

(III)  SETTLEMENTS OF TERMINATED CONTRACTS.

(2)  TO DETERMINE THE ALLOWABILITY OF COSTS UNDER
CONTRACT PROVISIONS WHICH PROVIDE FOR THE REIMBURSEMENT OF
COSTS; AND

(3)  IN ANY OTHER SITUATION THAT REQUIRES THE
DETERMINATION OF THE ESTIMATED OR THE INCURRED COSTS OF
PERFORMING CONTRACTS.

SECTION 8. AND BE IT FURTHER ENACTED, That Section(s)
10A(a), (b), (c), and (d), respectively, of Article 41 -
Governor - Executive and Administrative Departments, of the
Annotated Code of Maryland be and they are hereby
transferred, with amendments, to be Section(s) 7-101 through
7-104, respectively, to be under the new title "Title 7.
Administrative and Civil Remedies" and the new subtitle
"Subtitle 1. Defense of Sovereign Immunity in Actions in
Contract", of the new Article 21 - Procurement, of the
Annotated Code of Maryland, to read as follows:

ARTICLE 21 - PROCUREMENT

TITLE 7. ADMINISTRATIVE AND CIVIL REMEDIES

SUBTITLE 1. DEFENSE OF SOVEREIGN IMMUNITY IN
ACTIONS IN CONTRACT

[10A.] 7-101.