Md. Code Regs. 21.09.01.21

Current through Register Vol. 51, No. 21, October 18, 2024

Section 21.09.01.21 - Advance Agreements

A. Purpose. Both the State and the contractor should seek to avoid disputes and litigation arising from potential problems by providing in the terms of the solicitation and the contract the treatment to be accorded special or unusual costs which are expected to be incurred.

B. Form Required. Advance agreements may be negotiated either before or after contract award, depending upon when the parties realize the cost may be incurred, but shall be negotiated before a significant portion of the cost covered by the agreement has been incurred. Advance agreements shall be in writing, executed by both contracting parties, and incorporated in the contract.

C. Limitation on Costs Covered. An advance agreement may not provide for any treatment of costs inconsistent with these costs principles regulations unless a determination has been made pursuant to Regulation .23 of this chapter.

Md. Code Regs. 21.09.01.21