Maryland Statutes
Subtitle 4 - Service Contracts
Section 16-404 - Requirements

(a)    The Executive Director may not certify that the Montgomery Commission has complied with the requirements of this subtitle unless the Montgomery Commission:
        (1)    has taken steps to consider alternatives to the service contract, including reorganization, reevaluation of service, and reevaluation of performance;
        (2)    has consulted with the certified representative of any Montgomery Commission employees who will be adversely affected if the Montgomery Commission enters into the service contract; and
        (3)    has demonstrated, based on a cost comparison analysis utilizing good faith estimates, that the Montgomery Commission will save, by entering into a service contract, at least an amount equal to the lesser of $200,000 or 20% of the estimated net present value of the cost of the service contract.
    (b)    The Montgomery Commission shall estimate and compare at least the following in the cost comparison analysis:
        (1)    direct costs, including fringe benefits and the assumption that the contractor will pay employees who perform work under the service contract, at a minimum, the county living wage rate for Montgomery County;
        (2)    indirect overhead costs properly allocable to the bargaining unit work or service contract according to generally accepted accounting principles; and
        (3)    any costs associated with unemployment compensation or outplacement assistance for displaced employees.

Structure Maryland Statutes