Ch. 48

LAWS OF MARYLAND

the former enumeration omitted leases of real
property. The Procurement Revision Review Committee
notes, however, subsection (a)(1) of this section,
which is carried over from the former law, does not
except leases of real property. The General Assembly
may wish to amend the law to allow a cost
reimbursement contract for leases of real property in
either situation described in subsection (a) or to
prohibit a cost reimbursement contract for leases of
real property in both situations.

In the introductory language of subsection (d) of this
section, the reference to "procurement officer" is
added for clarity.

In subsection (d)(2)(ii) of this section, the word
"procurement" is substituted for the word "prime",
which formerly modified "contract", for clarity.

Defined terms: "Board" § 11-101

"Cost-reimbursement contract" § 13-201

"Procurement" § 11-101

"Procurement contract" § 11-101

"Procurement officer" § 11-101 "Unit" § 11-101

13-216. SECURITY FOR PAYMENT; PERFORMANCE.

(A)  PRICE OF $50,000 OR LESS.

EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION, A
PROCUREMENT OFFICER MAY NOT REQUIRE A CONTRACTOR TO PROVIDE A
PERFORMANCE BOND, PAYMENT BOND, OR OTHER SECURITY ON A
PROCUREMENT CONTRACT FOR CONSTRUCTION, CONSTRUCTION RELATED
SERVICES, SERVICES, OR SUPPLIES IF THE PRICE OF THE PROCUREMENT
CONTRACT IS $50,000 OR LESS.

(B)  EXCEPTION.

A PROCUREMENT OFFICER SHALL REQUIRE A CONTRACTOR TO PROVIDE
A PERFORMANCE BOND, PAYMENT BOND, OR OTHER SECURITY IF THE
SECURITY IS REQUIRED BY FEDERAL LAW OR AS A CONDITION OF FEDERAL
ASSISTANCE REQUIRES THE SECURITY.

(C)  CONSTRUCTION CONTRACTS EXCEEDING $50,000.

IF THE PRICE OF A PROCUREMENT CONTRACT FOR CONSTRUCTION
EXCEEDS $50,000, A PROCUREMENT OFFICER SHALL REQUIRE A CONTRACTOR
TO PROVIDE SECURITY AS REQUIRED UNDER TITLE 17, SUBTITLE 1 OF
THIS ARTICLE.

(D)  OTHER CONTRACTS EXCEEDING $50,000.

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