3362

LAWS OF MARYLAND

Ch. 840

FIXED PRICE FORM OF CONTRACT. [However, preference shall be given
in the order indicated to the following types of contracts:
first, fixed-price; second, fixed-price incentive; third,
cost-plus incentive fee; and fourth, cost-plus fixed fee or
cost-reimbursement.]

[13-704.] 11-127. DETERMINATIONS AS TO CONTRACTOR'S ACCOUNTING
SYSTEM.

[Except for a firm fixed-price contract, no contract type
may] A CONTRACT TYPE IN WHICH REIMBURSEMENT IS BASED, IN WHOLE OR
IN PART, ON THE CONTRACTOR'S COSTS MAY NOT be used unless the
procurement officer determines that the contractor's accounting
system will permit timely development of all necessary cost data
in the form required by the specific type of contract
contemplated and that the contractor's accounting system is
adequate to allocate costs in accordance with generally accepted
accounting principles.

11-128. REGULATIONS.

THE BOARD SHALL, BY REGULATION, ADOPT PRICE AND COST
PRINCIPLES, BASED ON GENERALLY ACCEPTED ACCOUNTING PRINCIPLES,
WHICH SHALL BE USED:

(1)  AS GUIDELINES IN NEGOTIATING:

(I)  ESTIMATED COSTS OR FIXED PRICES;

(II)  PRICE ADJUSTMENTS FOR CONTRACT
MODIFICATIONS AND CHANGE ORDERS; AND

(III)  SETTLEMENTS OF TERMINATED CONTRACTS;

(2)  TO ESTABLISH THE ALLOWABILITY OF COSTS UNDER
CONTRACT PROVISIONS FOR THE REIMBURSEMENT OF COSTS; AND

(3)  IN ANY OTHER SITUATION THAT REQUIRES THE
ESTABLISHMENT OF THE ESTIMATED OR INCURRED COSTS OF PERFORMING A
CONTRACT.

[13-705.] 11-129. MULTIYEAR CONTRACTS.

(a) [The Department may enter into multiyear contracts and
shall, by regulation, provide for the review and approval of
contracts for supplies or services which extend beyond the
current fiscal year.] SUBJECT TO ANY STANDARDS ESTABLISHED BY THE
BOARD AND PURSUANT TO REGULATIONS ADOPTED BY THE APPROPRIATE
DEPARTMENT, A PROCUREMENT AGENCY MAY ENTER INTO A MULTIYEAR
CONTRACT SUBJECT TO THE REVIEW AND APPROVAL OF THE APPROPRIATE
DEPARTMENT. At each level of [the] review and approval
[procedure] of A multiyear [contracts] CONTRACT, it shall be
determined: