Ch. 49

LAWS OF MARYLAND

18-601] TITLE 14, SUBTITLE 3 of the State Finance and Procurement
Article;

Article 64A - Merit System

57A.

(a)  In this subtitle the following words have the meanings
indicated.

(b)  "Departments" means the Department of Budget and Fiscal
Planning and the Department of Personnel.

(c)   ["Procurement agency"] "UNIT" has the same meaning
specified in § 11-101 of the State Finance and Procurement
Article [of the Code].

(d)  "Service contract" means a contract for the procurement
of services, as defined in [Title 11] § 11-101 of the State
Finance and Procurement Article [of the Code], provided within
State operated facilities estimated by the procurement officer to
exceed $100,000 in annual cost.

REVISOR'S NOTE: Chapter ____, Acts of 1988, which enacted

Division II of the State Finance and Procurement

Article, also amended this section to make stylistic
changes in subsections (c) and (d).

In subsection (c) of this section, the word "unit" is
substituted, as the defined term, for the former words
"procurement agency" to conform to the language of the
State Finance and Procurement Article.

61.

(a)  A [procurement agency] UNIT 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; or

(2)  $200,000 for any service contract costing in
excess of $1,000,000.

(c)  In calculating the cost comparison, the [procurement
agency] UNIT shall include the following:

(1) Direct costs, including fringe benefits;

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