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HARRY HUGHES, Governor
3361
The cost-plus-a-percentage-of-cost system of contracting may
not be used.]
11-124. COST-PLUS-A-PERCENTAGE-OF-COST.
(A) A PROCUREMENT AGENCY MAY NOT ENTER INTO A
COST-PLUS-A-PERCENTAGE-OF-COST CONTRACT.
(B) A CONTRACTOR UNDER ANY FORM OF COST REIMBURSEMENT
CONTRACT MAY NOT ENTER INTO A COST-PLUS-A-PERCENTAGE-OF-COST
SUBCONTRACT.
[13-702.] 11-125. COST-REIMBURSEMENT.
(a) [Cost-reimbursement contracts may not be awarded to
prime contractors under § 13-203, § 13-204, or § 13-205] A
PROCUREMENT AGENCY MAY NOT ENTER INTO A COST-REIMBURSEMENT
CONTRACT unless the procurement officer determines that [the] A
COST-REIMBURSEMENT contract is likely to be less costly to the
State than any other type of contract[,] or that it is
impracticable to obtain supplies, services, CONSTRUCTION RELATED
SERVICES, ARCHITECTURAL SERVICES, ENGINEERING SERVICES, or
construction, of the kind or quality required except under such a
contract.
(b) (1) Each contractor under a cost-reimbursement type
contract shall give notice and secure approval, as required by
the contract, before entering into:
(i) (1) A cost-reimbursement subcontract; or
(ii) (2) Any other subcontract involving more
than $25,000, or 5 percent of the estimated cost of the prime
contract.
(2) The cost plus a percentage of cost system of
contracting may not be used between contractors and
subcontractors.
(c) [Cost-reimbursement contracts] A COST-REIMBURSEMENT
CONTRACT shall provide that costs, INCLUDING THOSE FOR
SUBCONTRACTORS, will be reimbursed only if [they are costs
recognized as] allowable and allocable under:
(1) [the] cost principle regulations adopted
[pursuant to Title 16] UNDER § 11-128 OF THIS SUBTITLE[,]; or
(2) [in] the contract.
[13-703.] 11-126. PREFERENCE IN TYPES OF CONTRACTS.
Subject to the limitations of §§ [13-701 and 13-702] 11-124
AND 11-125 OF THIS SUBTITLE, any type of contract [which] THAT
will promote the STATE'S best interests [of the State] may be
used, BUT, WHERE PRACTICABLE, PREFERENCE SHALL BE GIVEN TO A
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