HARRY HUGHES, Governor                      2925

(1) THE GENERAL ASSEMBLY HAS MANDATED OR AUTHORIZED
THE PERFORMANCE OF THE SERVICES BY AN INDEPENDENT CONTRACTOR;

EXCEPT WHERE THE GENERAL ASSEMBLY HAS MANDATED OR AUTHORIZED
THE PERFORMANCE OF THESE SERVICES BY AN INDEPENDENT CONTRACTOR, A
SERVICE CONTRACT MAY BE CERTIFIED BY THE DEPARTMENTS AS EXEMPT
FROM THE PREFERENCE STATED IN § 8-802 OF THIS SUBTITLE IF IT
FALLS WITHIN ONE OR MORE OF THE FOLLOWING CLASSES:

(2) (l) THE SERVICES TO BE CONTRACTED FOR ARE NOT
AVAILABLE FOR PERFORMANCE BY STATE EMPLOYEES;

(3) (2) THE SERVICES ARE INCIDENTAL TO A CONTRACT FOR
THE PURCHASE OR LEASE OF REAL OR PERSONAL PROPERTY. A CONTRACT
IN THIS CLASSIFICATION MAY INCLUDE A "SERVICE AGREEMENT"
ATTENDANT TO THE PURCHASE OR RENTAL OF OFFICE EQUIPMENT OR
COMPUTERS;

(4) (3) THERE IS A CLEAR NEED TO OBTAIN INDEPENDENT
AMD UNBIASED FINDINGS OR OPINIONS. A CONTRACT IN THIS
CLASSIFICATION MAY INCLUDE OBTAINING THE SERVICES OF AN EXPERT
WITNESS IN LITIGATION;

(5)(4) A CONFLICT OF INTEREST WOULD RESULT FROM
PERFORMANCE OF THE SERVICES BY A STATE EMPLOYEE; OR

(6)(5) THE NATURE OF THE WORK FALLS WITHIN THE
DEPARTMENT OF PERSONNEL'S STANDARDS FOR EMERGENCY APPOINTMENTS.

10-105. 8-805.

(A)  A PROCUREMENT AGENCY THAT SEEKS TO ENTER INTO A SERVICE
CONTRACT SHALL SUBMIT DATA TO THE DEPARTMENTS SHOWING AN ACTUAL
COST SAVINGS FOR THE STATE UNDER THE CONTRACT AS COMPARED TO
PERFORMANCE OF THE WORK BY STATE EMPLOYEES.

(B)  THE COST SAVINGS CALCULATED OVER THE DURATION OF THE
CONTRACT SHALL BE AT LEAST:

(1)  20 PERCENT FOR ANY SERVICE CONTRACT COSTING UP TO
$1,000,000; AND OR

(2)  $200,000 FOR ANY SERVICE CONTRACT COSTING IN
EXCESS OF $1,000,000.

(C)  IN CALCULATING THE COST COMPARISON, THE PROCUREMENT
AGENCY SHALL INCLUDE THE FOLLOWING:

(1)  DIRECT COSTS, INCLUDING FRINGE BENEFITS;

(2)  INDIRECT OVERHEAD COSTS, WHICH SHALL INCLUDE ONLY
THOSE COSTS THAT CAN BE ATTRIBUTED SOLELY TO THE WORK IN QUESTION
AND THAT WOULD NOT EXIST IF THE WORK WERE NOT PERFORMED BY STATE
EMPLOYEES. INDIRECT OVERHEAD COSTS SHALL INCLUDE THE PRO RATA
SHARE OF EXISTING ADMINISTRATIVE SALARIES AND BENEFITS, RENTS,
EQUIPMENT COSTS, UTILITIES, AND MATERIALS;