3356

LAWS OF MARYLAND

Ch. 840

A PROVISION THAT THE PRICE, INCLUDING PROFIT OR FEE, SHALL BE
REDUCED TO EXCLUDE ANY SIGNIFICANT PRICE INCREASES IN A COMPONENT
OCCURRING BECAUSE THE CONTRACTOR FURNISHED COST OR PRICE
INFORMATION THAT, AS OF THE DATE AGREED ON BETWEEN THE PARTIES,
WAS INACCURATE, INCOMPLETE, OR NOT CURRENT.

[13-407.

Every written contract binding or purporting to bind the
State of Maryland, or any department, commission, agency or
branch thereof, to pay a sum of money in excess of $25,000 in any
one fiscal year for the purpose for which such contract is made
shall contain the following provision: "No employee of the State
of Maryland, or any department, commission, agency or branch
thereof, whose duties as such employee include matters relating
to or affecting the subject matter of this contract, shall, while
such employee, become or be an employee of the party or parties
hereby contracting with said State of Maryland, or any
department, commission, agency or branch thereof." For purposes
of this section, a member of the General Assembly shall not be
considered an employee of the State of Maryland or of a
department, commission, agency or branch thereof.]

[Subtitle 5.] PART VI. Bonds.

[13-502.

No procurement agency of the State may require bid,
performance, and payment bonds to be posted if the contract price
is less than $50,000, unless such bonds are required by federal
law or regulation or as a condition to federal assistance.]

[13-503.

Performance bonds or other security may be required for any
procurement of supplies and services over $50,000 if the
circumstances warrant, as determined by the procurement officer.]

[13-504.

(a)  Each bidder or offeror for a construction contract
shall give a bid bond if the bid or offer exceeds $50,000. Bid
bonds may be required for any other procurement over $50,000, as
determined by the procurement officer. The bid bond shall be
provided by a surety company authorized to do business in this
State, or the equivalent in cash, or in a form satisfactory to
the procurement officer.

(b)  The bid bond shall be in an amount equal to at least 5
percent of the amount of the bid or price proposal except that,
for bids stating a rate but not a total cost, the bid bond shall
be in an amount as determined by the procurement officer.