1. A. Limitation. These cost principles regulations are not applicable to:

   1. (1) The establishment of prices under contracts awarded on the basis of competitive sealed bidding, or otherwise based on adequate price competition rather than the analysis of individual, specific cost elements, except that this subtitle does apply to the establishment of adjustments of price for equitable adjustments made under these contracts;
   2. (2) Prices which are fixed by law or regulation; and
   3. (3) Prices which are based on established catalog prices or established market prices.

2. B. Application.

   1. (1) The cost principles and procedures contained in this subtitle shall be used to determine the allowability of incurred costs for the purpose of reimbursing costs under contract provisions which provide for the reimbursement of costs, provided that any deviation from these cost principles may be made as provided in Regulation .23.

   2. (2) The cost principles and procedures set forth in this subtitle shall be used as guidance in:

      1. (a) The establishment of contract cost estimates and prices under contracts awarded on the basis of competitive sealed proposals where the award may not be based on adequate price competition, sole source emergency or small procurement procedures;
      2. (b) The establishment of price adjustments for equitable adjustments under contracts that have been let on the basis of competitive sealed bidding, competitive sealed proposals, or otherwise based on adequate price competition;
      3. (c) The pricing of termination for convenience settlements; and
      4. (d) Any other situation in which cost analysis is used.

Authority: State Finance and Procurement Article, §§12-101 and 13-213, Annotated Code of Maryland

Effective date: July 1, 1981 (8:13 Md. R. II-5)

Regulations .01, .02, .14C, .18, and .23 amended effective January 9, 1989 (15:27 Md. R. 3138)