{"data":{"id":"us-md/md.-code-state-finance-and-procurement-13-215","jurisdiction":"us-md","citation":"Md. Code, State Finance and Procurement § 13–215","heading":"","body":"(a) A unit may not enter into a cost-reimbursement contract unless the procurement officer determines that:\n(1) a cost-reimbursement contract is likely to be less costly to the State than any other type of contract; or\n(2) except for leases of real property, the kind or quality of procurement that the unit requires could not be obtained practicably under any other type of contract.\n(b) A unit may not enter into a procurement contract that is wholly or partly a cost-reimbursement contract unless the procurement officer determines that the accounting system of the contractor:\n(1) will allow timely development of all necessary cost data in the form required by the specific type of procurement contract under consideration; and\n(2) is adequate to allocate costs in accordance with generally accepted accounting principles.\n(c) A cost-reimbursement contract shall provide that costs, including costs for subcontractors, will be reimbursed only if the costs are allowable and allocable under:\n(1) the procurement contract; or\n(2) the regulations of the Board on cost principles.\n(d) A contractor under a cost-reimbursement contract shall give notice to and, as required under the contract, obtain approval from a procurement officer before the contractor enters into:\n(1) a cost-reimbursement subcontract; or\n(2) any subcontract involving more than:\n(i) $25,000; or\n(ii) 5% of the estimated cost of the procurement contract.","path":["Article - State Finance and Procurement"],"source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gsf\u0026section=13-215","current_through":"2026-01-01","vintage":"","retrieved_at":"2026-09-14T20:00:48Z","sha256":"501b012c8d6cb7eb6f39bbe6a251130b2eaaf6980ca660465bbc03571e3f0983","source_id":"us-md","stale":false,"prev":"us-md/md.-code-state-finance-and-procurement-13-214","next":"us-md/md.-code-state-finance-and-procurement-13-216"},"notice":"GroundRules: Original legal text. Not legal advice."}