Md. Code Regs. 21.06.03.06

Current through Register Vol. 51, No. 20, October 4, 2024

Section 21.06.03.06 - Quantity Contracts Requirements Contracts

A. Definitions.

(1) "Definite quantity contract" means a fixed-price contract that provides for delivery of a specified amount of goods or labor either at specified times or when ordered.

(2) "Indefinite quantity contract" means a contract for an indefinite amount of goods or labor to be furnished at specified times, or as ordered, that establishes unit prices of a fixed-price type.

(3) "Requirements contract" means an indefinite quantity contract for goods or labor that obligates the State to order all the actual requirements of designated using agencies during a specified period of time.

B. Application.

(1) Indefinite Quantity Contract. An approximate quantity or the best information available as to quantity shall be stated in the solicitation and the contract. The contract may provide a minimum quantity the State is obligated to order and may provide a maximum quantity that limits the State's obligation to order.

(2) Requirements Contracts. Requirements contracts shall include the following:

(a) A provision that requires the State to order its actual requirements of the goods or labor covered, provided, however, that the State may reserve in the solicitation and in the resulting contract the right to take bids separately if a particular quantity requirement arises that exceeds the State's normal requirements or an amount specified in the contract; and

(b) Two exemptions from ordering under the contract:

(i) When the procurement officer approves a finding that the goods or labor available under the contract may not meet a nonrecurring, special need of the State, or

(ii) Goods are produced or labor is performed incidental to the State's own programs, such as Maryland Correctional Enterprises, that can satisfy the need.

Md. Code Regs. 21.06.03.06

Regulation .06B amended effective March 13, 2006 (33:5 Md. R. 523)