1. A. The procurement officer may conduct discussions or negotiations regarding the procurement agency claim and, subject to approval by the reviewing authority and the Office of the Attorney General, and consistent with the applicable law, may settle the claim.
2. B. The settlement agreement shall be written and shall be based upon a determination of the procurement officer that the settlement is in the best interests of the State.

3. C. If the contractor fails to respond, provides an inadequate response, or denies the procurement agency claim or the relief sought by the procurement agency in whole or in part, and the claim is not otherwise settled, the procurement officer shall prepare a recommended decision on the claim, which shall contain:

   1. (1) A description of the claim;
   2. (2) A reference to pertinent contract provisions;
   3. (3) A statement of factual areas of agreement and disagreement;
   4. (4) A statement of the proposed decision, with supporting rationale; and
   5. (5) A paragraph that states substantially the following:

   “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 COMAR 21.10.04.09. 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.”

4. D. The procurement agency claim and recommended decision of the procurement officer shall be submitted for review to the reviewing authority and the Office of the Attorney General.
5. E. The reviewing authority may approve, modify, or disapprove the recommended decision.
6. F. In disapproving a recommended decision, the reviewing authority may order the procurement officer to effect a resolution of the claim.

7. G. Unless the procurement agency claim is remanded to the procurement officer, the decision of the reviewing authority:

   1. (1) Is the final action by the procurement agency; and

   2. (2) Shall be furnished to the contractor by:

      1. (a) Certified mail, return receipt requested; or
      2. (b) Any other method that provides evidence of receipt.

Authority: State Finance and Procurement Article, §§12-101 and 15-201—15-223, Annotated Code of Maryland

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

Regulations .01—.03 repealed and new Regulations .01—.06 adopted effective January 9, 1989 (15:27 Md. R. 3138)

Regulation .01B amended effective October 18, 1999 (26:21 Md. R. 1631)

Regulation .02B amended effective October 6, 1997 (24:20 Md. R. 1405); January 24, 2000 (27:1 Md. R. 78)

Regulation .02D amended and E adopted effective October 27, 2003 (30:21 Md. R. 1530)

Regulation .04E amended effective October 6, 1997 (24:20 Md. R. 1405)

Regulation .06D amended effective December 25, 2000 (27:25 Md. R. 2284)

Chapter revised effective May 9, 2005 (32:9 Md. R. 849)

Regulation .02E amended effective April 7, 2008 (35:7 Md. R. 751)

Regulation .04C, D amended effective March 11, 2019 (46:5 Md. R. 310)

Regulation .04E amended effective April 7, 2008 (35:7 Md. R. 751)

Regulation .05C, D amended effective April 7, 2008 (35:7 Md. R. 751)

Regulation .09B amended effective April 7, 2008 (35:7 Md. R. 751)