HB 662 expands Maryland’s procurement law by broadening who may use the master contracting method and by expressly authorizing procurement officers to award indefinite quantity contracts in certain multi-award procurements. The bill amends the State Finance and Procurement Article to replace references to “designated procurement units” with “a unit,” which has the effect of allowing more state units to use master contracting rather than limiting the method to a smaller set of agencies. It also adds a new section governing indefinite quantity contracts, including required terms for scope, maximum hours or fees, and other work-order details.
The bill further directs the Board of Public Works to adopt regulations establishing how work is assigned under indefinite quantity contracts. Those regulations must include methods such as right of first refusal based on contract ranking and rotation among contractors, while also allowing federal funding requirements to control when they conflict with state assignment rules. The act takes effect October 1, 2025.
Impact
HB 662 changes the State Finance and Procurement Article by expanding the availability of master contracting across state units and creating a statutory framework for indefinite quantity contracts. It adds procurement rules for work orders, contract terms, and assignment methods, and requires implementing regulations from the Board of Public Works. The bill affects state procurement officers, contracting agencies, and vendors competing for multi-award contracts, especially in service, supply, commodity, and construction procurements.
Sentiment
The bill appears to have broad support and little visible opposition. It passed the House on third reading unanimously, 138-0, and the committee report was favorable with amendments. No committee transcript was provided, but the voting record suggests the measure was viewed as a technical or administrative procurement reform rather than a controversial policy change.
Contention
The main policy issue in the bill is how work should be assigned under indefinite quantity contracts. The legislation requires the Board of Public Works to set rules for assignment, including right of first refusal and rotation, but also preserves flexibility where federal funding rules require a different method. Another potential point of concern is the expansion of master contracting authority from a narrower set of procurement units to all units, which may raise questions about procurement oversight, competition, and consistency across agencies; however, no recorded opposition appears in the available materials.