Md. Code Regs. 21.10.04.04

Current through Register Vol. 51, No. 7, April 5, 2024

Section 21.10.04.04 - Disposition of Contractor Claim

A. The procurement officer may conduct discussions or negotiations regarding the contractor claim and, subject to approval by the reviewing authority and the Office of the Attorney General, and consistent with the budget and applicable law, may settle the claim. The settlement agreement shall be written, shall provide for an appropriate release, and shall be supported by a written determination of the procurement officer that the settlement is in the best interests of the State.

B. If discussions or negotiations are not conducted or if the contractor claim is not settled, the procurement officer shall prepare a recommended decision on the claim, which normally should contain:

(1) A description of the claim;

(2) A reference to pertinent contract provisions;

(3) A statement of factual areas of agreement or disagreement;

(4) A statement of the proposed decision, with supporting rationale; and

(5) A paragraph substantially as follows:

"This decision is the final action of this agency. This decision may be appealed to the Maryland State Board of Contract Appeals in accordance with Regulation .09 of this chapter. If you decide to take such an appeal, you must mail or otherwise file a written notice of appeal with the Appeals Board within 30 days from the date you receive this decision."

C. The contractor claim and recommended decision of the procurement officer shall be submitted for review to the reviewing authority and the Office of the Attorney General. Unless the reviewing authority remands the proceeding with instructions to the procurement officer, the reviewing authority shall approve, modify, or disapprove the recommended decision within 180 days after receiving the contract claim or a longer period if the parties agree. In disapproving a recommended decision, the reviewing authority may order the procurement officer to effect a resolution of the claim.

D. Unless the contractor claim is remanded to the procurement officer, the decision of the reviewing authority, including a decision not to pay a contract claim, is the final action by the procurement agency and shall be furnished to the contractor by certified mail, return receipt requested, or by any other method that provides evidence of receipt. Failure to reach a decision within the time required under §C of this regulation may be deemed, at the option of the contractor, to be a decision not to pay the contract claim that may be appealed in accordance with Regulation .09 of this chapter.

E. Construction Contracts.

(1) Failure to reach a decision within the time prescribed in §E(2) of this regulation may be deemed, at the option of the contractor, to be a decision not to pay the contract claim that may be appealed in accordance with Regulation .09 of this chapter.

(2) The reviewing authority shall mail or deliver written notification of its decision to the contractor within:

(a) 90 days after the procurement officer receives the claim if the claim is an amount for which the Appeals Board accelerated procedure, set forth in COMAR 21.10.06.12 a, may be used;

(b) 180 days after the procurement officer receives the claim for a claim not covered under §E(2)(a) of this regulation; or

(c) A longer period that the contractor agrees to in writing.

(3) The final decision may award a contract claim only for those expenses incurred not more than 30 days before the notice of claim was initially required to have been submitted under Regulation .02 of this chapter.

(4) If the final decision grants the claim in part and denies the claim in part, the procurement agency shall pay the contractor the amount granted. Payment of the partial claim is not an admission of liability by the unit on the claim and does not preclude the unit from recovering the amount paid if a subsequent determination modifies the final decision.

Md. Code Regs. 21.10.04.04

Regulations .04 adopted effective January 9, 1989 (15:27 Md. R. 3138)
Regulation .04E amended effective October 6, 1997 (24:20 Md. R. 1405)
Regulation .04E amended effective April 7, 2008 (35:7 Md. R. 751); amended effective 45:9 Md. R. 463, eff. 5/7/2018; amended effective 46:5 Md. R. 310, eff. 3/11/2019