Need a It Contract in Maryland? AroundWire Can Help

Information technology (IT) contracts in Maryland, particularly for public sector engagements, are governed by the Code of Maryland Regulations (COMAR) and state procurement laws. Typical contracts must comply with the Maryland Procurement Law (Md. State Finance and Procurement Article), requiring competitive bidding or negotiated procurement, depending on contract value and scope. Vendors must register with the Maryland Department of Assessments and Taxation and, when dealing with sensitive data or systems, may need to demonstrate compliance with state cybersecurity requirements, such as those set by the Maryland Department of Information Technology (DoIT). Insurance requirements commonly include general liability, professional liability (errors and omissions), and cyber liability coverage, with specified minimum limits. Contracts often stipulate mandatory background checks for personnel, especially if access to state networks or confidential data is involved. Standard terms include net 30 to net 45 payment periods, with retainage or milestone payments for larger projects. Maryland law limits indemnification by state agencies, so mutual indemnity clauses are rare. Dispute resolution typically favors negotiation and mediation before litigation, and the Maryland Board of Contract Appeals may have jurisdiction over public contract disputes. Minority Business Enterprise (MBE) participation goals are frequently mandated. Additional compliance may be required for cloud or hosting services, including data residency and breach notification provisions.