1. (a) Except as otherwise provided in this section, a procurement officer may not require a bidder or offeror to provide bid security on a procurement contract if the procurement officer expects the price to be less than or equal to the small procurement amount specified in § 13-109 of this title.

2. (b)

   1. (1) A procurement officer shall require a bidder or offeror to provide bid security on a procurement contract for construction if:

      1. (i) the price is expected to exceed the small procurement amount specified in § 13-109 of this title; or
      2. (ii) required by federal law or a condition of federal assistance requires the security.

   2. (2) The amount of bid security required for a procurement contract for construction shall be:

      1. (i) at least 5% of the bid or price proposal; or
      2. (ii) if the bid or price proposal states a rate but not a total price, an amount determined by the procurement officer.

3. (c)

   1. (1) A procurement officer may require a bidder or offeror to provide bid security on a procurement contract for services, supplies, or construction related services if the price of the procurement contract is expected to exceed the small procurement amount specified in § 13-109 of this title.
   2. (2) A procurement officer shall require a bidder or offeror to provide bid security on a procurement contract for services, supplies, or construction related services if federal law or a condition of federal assistance requires the security.
   3. (3) The amount of bid security required for a procurement contract for services, supplies, or construction related services shall be an amount determined by the procurement officer. If a bid or proposal states a rate but not a total price, the procurement officer shall determine the dollar amount of the bid security.

4. (d) Bid security under this section shall be:

   1. (1) a bond provided by a surety company authorized to do business in the State;
   2. (2) cash; or
   3. (3) another form of security allowed by regulation.

Added by Acts 1988, c. 48, § 2, eff. Oct. 1, 1988. Amended by Acts 1995, c. 116, § 1, eff. June 30, 1995; Acts 2006, c. 299, § 1, eff. Oct. 1, 2006; Acts 2008, c. 266, § 1, eff. Oct. 1, 2008; Acts 2025, c. 601, § 1, eff. Oct. 1, 2025.