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HB0662 revises Maryland procurement law to expand and clarify the use of master contracting and indefinite quantity contracts in State procurement. The bill changes the definition and scope of “designated procurement units” so that more State units may use master contracting, rather than limiting the authority to a smaller set of agencies. It also updates the rules governing task orders under master contracts, including when solicitations must go to all master contractors or a minimum number of qualified contractors, and preserves a special carveout for construction master contracts that meet specified competitive bidding conditions.
The bill also adds a new section authorizing procurement officers to award indefinite quantity contracts in certain multi-award procurements. These contracts must specify the scope of work, maximum hours or fees, and other relevant terms, and each work order becomes part of the contract. The Board of Public Works is required to adopt regulations establishing how work is assigned under these contracts, including methods such as first-right-of-refusal based on ranking or rotation among contractors, while allowing federal funding requirements to control when they conflict with state assignment rules.
HB0662 amends the State Finance and Procurement Article to broaden which units may use master contracting, to standardize task-order solicitation and evaluation rules, and to create a formal framework for indefinite quantity contracts. It shifts procurement authority and procedures across State agencies, affects contractors competing for State work, and requires the Board of Public Works to issue implementing regulations. The bill takes effect October 1, 2025, and will influence how multi-award procurement contracts are structured, assigned, and administered in Maryland.
The available legislative record suggests generally favorable sentiment toward the bill. It was reported from the House Health and Government Operations Committee with amendments and adopted by the House, indicating support for the procurement modernization and flexibility it provides. No committee transcript or recorded vote details are available in the provided material, so there is no evidence of organized opposition in the record supplied.
The main policy issues appear to be how broadly master contracting authority should extend and how work should be assigned under indefinite quantity contracts. Potential points of contention include whether expanding the number of units that may use master contracting could reduce procurement oversight or increase administrative complexity, and whether assignment methods such as first-right-of-refusal or rotation best balance fairness, efficiency, and competition. The bill also preserves a federal-preemption rule for projects with federal funding requirements, which could matter where state assignment rules conflict with federal procurement conditions.