Code of Maryland
State Finance and Procurement
Division 2. Procurement
MD. CODE ANN., STATE FIN. & PROC. § 13-110
(a)(1) In this section the following words have the meanings indicated.
(2) “Cooperative entity” means one or more State or local entities that enter into an agreement for the cooperative or joint administration of programs.
(3) “Governmental entity” means:
(i) the federal government or an agency or other instrumentality of the federal government;
(ii) another state or an agency or other instrumentality of another state;
(iii) a bistate or multistate agency;
(iv) a county, municipal corporation, or other political subdivision of the State or of another state, or an agency or other instrumentality of the political subdivision;
(v) a bicounty or multicounty agency;
(vi) a primary procurement unit; or
(vii) an affiliation, alliance, consortium, or group composed solely of governmental entities that is established for purposes of promoting intergovernmental cooperative purchasing.
(4) “Intergovernmental cooperative purchasing agreement” means a contract:
(i) 1. entered into by at least one governmental entity and a person selected in a manner that is consistent with the purposes set forth under § 11–201 of this article;
- that is available for use by the governmental entity entering the contract and at least one additional governmental entity which may, but need not be, an original party to the contract; and
- that is intended to promote efficiency and savings that can result from intergovernmental cooperative purchasing; or
(ii) between a primary procurement unit and a person who, at the time the intergovernmental cooperative purchasing agreement is awarded, has a contract with the federal government or an agency or other instrumentality of the federal government, and who agrees to provide the unit with identical prices, terms, and conditions as stipulated in the federal contract.
(5) (i) “Local entity” means a county, municipal corporation, bicounty or multicounty agency, public authority, special taxing district, or other political subdivision or unit of a political subdivision of this State.
(ii) “Local entity” includes boards of education and library boards that receive funding from the State.
(6) “Not–for–profit entity” means a corporation incorporated in the State, or otherwise qualified to do business in the State that has been determined by the Internal Revenue Service to be exempt from taxation under § 501(c)(3), (4), or (6) of the Internal Revenue Code.
(7) “State entity” means a department, board, commission, agency, or a subunit in the Executive branch of State government.
(b) Participation of primary procurement unit. — (1) Subject to § 12-107 of this article, whenever a primary procurement unit procurement officer determines that it is in the best interest of the State to sponsor or participate in an intergovernmental cooperative purchasing agreement, with the approval of the unit head and subject to any other approval required by law, the primary procurement unit may become a party to or participate under the agreement.
(d) (1) A State or local entity may enter into an agreement for the cooperative or joint administration of programs with one or more other State or local entities.
(e) Notwithstanding any other law, a local entity may participate in an existing State or local contract drafted in accordance with this section, if the governing body of the entity determines that participation would:
(1) provide a cost savings in purchase price or administrative burden; or
(2) further other policy goals including operational and energy–efficiency
goals related to the purchase, operation, or maintenance of the supply or service.
MD. CODE ANN., STATE FIN. & PROC. § 13-102. Available methods
(a) In general. — Except as provided in Subtitle 3 and Subtitle 4 of this title, all procurement by units shall be by competitive sealed bids unless one of the following methods specifically is authorized:
(6) an intergovernmental cooperative purchasing agreement under § 13-110 of this subtitle;
(b) Preferred methods. —
(3) Procurement under an intergovernmental cooperative purchasing agreement is appropriate in situations where the State is expected to achieve a better price as the result of economies of scale or to otherwise benefit by purchasing in cooperation with another governmental entity.
Code of Maryland Regulations
Title 21. State Procurement Regulation
COMAR 21.02.05.04. Commodity Procurement.
(4) Scheduled Purchase Items and Contract Items Supersede any Exempt or Delegated Procurement. The Department operates a regularly scheduled purchase program through which a using agency may plan and order needed commodities. The Department also develops term contracts for various commodities. Except for purchases off a local jurisdiction intergovernmental cooperative purchasing agreement, a using agency may not purchase from an alternate source an item which is available through the regularly scheduled purchase program or an item which is available through a term requirements or indefinite quantity contract except where an item can be purchased from another vendor when the total cost is less than that of the item on a schedule resulting from an intergovernmental agreement and the price of the purchase does not exceed $1,000. A written determination shall be made that compares all elements of cost demonstrating the lower cost. Additionally, the total cost per year for all items purchased from an alternate vendor(s) shall may exceed $10,000 for each agency.
COMAR 21.05.09.02. Cooperative Purchasing Authorized.
A. Subject to COMAR 21.02.01, a primary procurement unit may participate in, conduct, sponsor, or administer an intergovernmental cooperative purchasing agreement when a determination under Regulation .04 of this chapter is made.
B. A primary procurement unit may not sponsor, conduct, or participate in an intergovernmental cooperative purchasing agreement for architectural or engineering services except when the procurement is conducted by the State, and pursuant to COMAR 21.12.
COMAR 21.05.09.03. Forms of Intergovernmental Cooperative Purchasing.
A. Consolidated Requirements. The preferred form of intergovernmental cooperative purchasing is when participating governmental entities aggregate their common requirements for purposes of maximizing economies of scale when soliciting bids or proposals. Under this form:
(1) Each participating governmental entity agrees to procure its respective requirements from the successful bidder or offeror; and
(2) A lead jurisdiction conducts the procurement on behalf of all participants and either a master contract award or awards will be made by the lead jurisdiction on behalf of all participants, or, if stated in the solicitation, each participant may elect to award its own contract or contracts pursuant to the criteria stated in the invitation for bids or request for proposals.
B. Except as prohibited under §C of this regulation, a primary procurement unit may purchase its requirements from another governmental entity’s contract if that contract is an intergovernmental cooperative purchasing agreement and is available for use by the primary procurement unit.
COMAR 21.05.09.04. Determinations Required.
Before sponsoring or participating in an intergovernmental cooperative purchasing agreement, the procurement officer of the primary procurement unit shall make a written determination that it is in the best interest of the State to do so, and which includes a statement that participation in the agreement:
(1) Provide cost benefits to the State,
(2) Promote administrative efficiencies, or
(3) Promote intergovernmental cooperation; and
B. Is not intended as a means to evade the purposes set forth under COMAR 21.01.01.03.
COMAR 21.05.09.05. Approvals Required.
Before awarding or participating in an intergovernmental cooperative purchasing agreement, the procurement officer shall obtain the approval of the primary procurement unit head, and any other approvals as required under this title.
COMAR 21.05.09.06. Contract Types.
An intergovernmental cooperative purchasing agreement may be in the form of a “Definite Quantity Contract” or an “Indefinite Quantity Contract” (which includes requirements contracts), or any other contract type permitted under COMAR 21.06.03.
COMAR 21.05.09.07. Public Notice.
When a primary procurement unit is a named participant in a solicitation for bids or proposals for an intergovernmental cooperative purchasing agreement, or the unit acts as a sponsor of an agreement, and the value of the procurement to be made by the State is expected to exceed $25,000, public notice of the solicitation shall be given pursuant to COMAR 21.05.02.04.
COMAR 21.05.09.08. State Sponsored Agreements.
If a primary procurement unit sponsors an intergovernmental cooperative purchasing agreement:
A. The solicitation shall contain all clauses, terms, and conditions required under this title;
B. The State’s portion of the contract shall be awarded in the same manner as the contract would be awarded under this title if the unit was the sole participant under the contract; and
C. All procedures under this title, including procedures governing contract approvals, shall apply to the State’s participation.
COMAR 21.05.09.10. Participation by Political Subdivisions in State Contracts.
A political subdivision of the State may participate under any intergovernmental purchasing agreement sponsored by a primary procurement unit in a manner consistent with the terms of the agreement.