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Bill

HB 662

Procurement - Indefinite Quantity Contracts - Authorization

2025 Regular Session Introduced by Tiffany Alston and 30 co-sponsors

Maryland bill authorizes state agencies to use open-ended indefinite quantity contracts for goods and services with no preset spending caps or end dates.

Hearing 3/26 at 1:00 p.m.
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Bill Summary · HB 662

Legislative bill overview

HB 662 authorizes Maryland state agencies to enter into indefinite quantity contracts (IQCs) for goods and services without a predetermined maximum dollar amount or specific end date. The bill allows agencies flexibility in procurement by enabling them to establish long-term vendor relationships and adjust spending based on actual need, rather than committing to fixed contract values upfront.

Why is this important

Indefinite quantity contracts can streamline government purchasing by reducing administrative overhead and allowing agencies to respond more efficiently to changing operational needs. However, this approach shifts budget predictability from the contracting phase to the execution phase, potentially creating challenges for fiscal planning and oversight since total expenditures won't be known in advance.

Potential points of contention

  • Budget transparency concerns: Without capped contract values, legislators and the public may struggle to know the true cost of government operations, making budget accountability more difficult
  • Vendor lock-in risks: Long-term IQCs without maximum limits could reduce competitive pressure on vendors to maintain quality or competitive pricing over the contract's lifetime
  • Scope creep potential: Agencies might expand service requests beyond original intentions since contracts lack defined quantity or duration limits, leading to unexpected cost increases

Compiled from official sources — confirm details with the bill’s official record.

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