1. (a) In this section, “proof of concept” means a test, evaluation, demonstration, or pilot project of a good, service, or technology in a real-world environment to evaluate whether the good, service, or technology can be successfully deployed and is beneficial to the State.

2. (b)

   1. (1) A competitive proof of concept procurement is a formal competitive procurement method that may be used to solicit proposals for the conduct of a proof of concept and participation in subsequent phases of the procurement, including full implementation or deployment when the head of a unit determines the process to be appropriate and in the best interests of the unit, including:

      1. (i) testing software-as-a-service or off-the-shelf software;
      2. (ii) testing new, innovative products or services; or
      3. (iii) testing a product or service conceptualized or conceived of by a unit of State government.

   2. (2)(i)1. After obtaining the approval of the head of the unit and before conducting a competitive proof of concept procurement, the unit shall obtain approval from the Chief Procurement Officer, or the Chief Procurement Officer's designee.

      1. 2. The request for approval under this subparagraph shall demonstrate that conducting a competitive proof of concept procurement is in the best interest of the State.
      2. (ii) If the procurement is for information technology, before conducting a competitive proof of concept procurement, the unit shall obtain approval from the Secretary of Information Technology, or the Secretary's designee.

      3. (iii) The Secretary of Information Technology may grant approval for a competitive proof of concept procurement for information technology if the unit:

         1. 1. has sufficient internal resources to manage the proof of concept, including human capital, subject matter expertise, and technological infrastructure, or has the means to obtain these resources; and
         2. 2. enters into a memorandum of understanding with the Department of Information Technology that requires regular status updates, vendor capacity, and any other information necessary for the Department of Information Technology to evaluate whether the proof of concept can be successfully deployed and is beneficial to the State.

3. (c)

   1. (1) A competitive proof of concept procurement solicitation shall include a statement of:

      1. (i) the scope of work, statement of need, or project description, including the intended use, quantity, estimated time frame for the proof of concept, and anticipated number of proof of concept awards that will be made; and
      2. (ii) the factors, including price, that will be used at each phase in evaluating proposals and the relative importance of each.
   2. (2) A solicitation may be distributed to vendors known to offer goods or services within the scope of the proof of concept and shall be posted on eMaryland Marketplace Advantage.

4. (d) After receipt of proposals but before award of a procurement contract, a unit may:

   1. (1) conduct discussions with and receive clarifications from an offeror;
   2. (2) request product samples for testing by the unit or a demonstration of a product or service and use these samples or demonstrations in its evaluation process; and
   3. (3) allow offerors reasonably susceptible of being selected for award to participate in all subsequent phases of the procurement including submission of best and final offers.

5. (e)

   1. (1) A unit may issue a contract to each offeror reasonably susceptible of being selected for award to deliver product samples for testing or provide a demonstration made under subsection (d)(2) of this section.
   2. (2) A contract awarded under this subsection does not preclude a vendor from continuing to participate in subsequent phases of the procurement.
6. (f) A unit may award one or more contracts for full implementation or deployment of the good, service, or technology evaluated during the proof of concept if it is in the best interest of the State.
7. (g) A unit shall publish notice of a contract awarded under this section in excess of the small procurement amount specified in § 13-109 of this subtitle in eMaryland Marketplace Advantage.
8. (h) The Department of General Services, in consultation with the Department of Information Technology, shall adopt regulations, policies, and procedures for the development and implementation of competitive proof of concept procurements.

Added by Acts 2024, c. 496, § 1, eff. July 1, 2024. Amended by Acts 2026, c. 265, § 1, eff. June 1, 2026.