2730

LAWS OF MARYLAND

Ch. 775

1B.

THE DUTIES, POWER, AND AUTHORITY OVER THE PROCUREMENT
MANAGEMENT, AND CONTROL OF ALL SUPPLIES, SERVICES'
CONSTRUCTION, AND OTHER ITEMS ACQUIRED BY THE STATE IS
VESTED WITH THE BOARD OF PUBLIC WORKS AS PROVIDED IN ARTICLE
21 OF THE CODE.

7.

[(1)] (A) The Board of Public Works shall in like
manner supervise the expenditure of all sums appropriated
for the acquisition of land, buildings, equipment, new
construction and other capital expenditures, except in
connection with State roads, bridges and highways, whether
made through the medium of a budget bill, a supplementary
appropriation bill or a State bond issue bill, and all
contracts for the expenditure thereof shall be subject to
the approval of said Board before the same are executed,
after review by the Secretary of General Services. [Except
as may be otherwise permitted by other provisions of law
regarding emergencies, all State construction contracts in
excess of $10,000 shall be awarded on a competitive basis.
However, the Board of Public Works may approve the award of
such contracts to other than the lowest bidder if the Board
determines that to be in the best interest of the State.]

[(2)] (B) In any acquisition of property from private
owners, the Board of Public Works prior to the acquisition
shall obtain two independent appraisals of the property.

[(3) (i) A negotiated or change order contract for
construction in excess of $10,000 may not be awarded unless
the contractor first executes a truth-in-negotiation
certificate stating that wage rates, and other factual unit
costs supporting the compensation are accurate, complete,
and current at the time of contracting.

(ii) The certification shall contain a provision
that the original price of the contract and any additions to
it, including profits or a fee, shall be adjusted to exclude
any sums where the board determines the price was increased
in those sums due to inaccurate, incomplete, or noncurrent
wage rates and other factual unit costs.

(iii) Adjustments to the contract shall be made
within one year of the completion of the performance of the
contract.

(iv) Any person who intentionally violates the
provisions of this paragraph is guilty of a felony and upon
conviction is subject to a fine not exceeding $5,000, or
imprisonment not exceeding five years, or both.

(4) A cost-plus-a-percentage-of-cost type of contract
is prohibited. A firm may not allow increased costs to