Code of Maryland Regulations
Title 21 - STATE PROCUREMENT REGULATIONS
Subtitle 05 - PROCUREMENT METHODS AND PROJECT DELIVERY METHODS
Chapter 21.05.15 - Pay-for-Success Contracting
Section 21.05.15.04 - Pay-for-Success Contracts

Universal Citation: MD Code Reg 21.05.15.04

Current through Register Vol. 51, No. 19, September 20, 2024

A. A pay-for-success contract executed under this regulation shall include:

(1) A quantification plan approved by the unit;

(2) A statement of the environmental outcomes to be procured under the contract and a description of how defined performance measures will demonstrate progress in achieving these outcomes;

(3) Requirements regarding the content and frequency of progress reports regarding the achievement of environmental outcomes;

(4) A methodology for calculating the amount and timing of outcome payments to an aggregator when the evaluator determines that the aggregator has achieved a defined performance measure;

(5) A statement that the basis of payment is the determination of achievement of environmental outcomes by the evaluator and that payments for those outcomes do not require itemized billing or cost documentation by the aggregator; and

(6) Terms addressing:
(a) Compliance with State law;

(b) Nondiscrimination in employment;

(c) Contractor indemnification;

(d) Termination for default; and

(e) The unit's right to inspect the environmental outcomes project.

B. A pay-for-success contract executed under this regulation may include provisions regarding:

(1) Long-term maintenance and monitoring of environmental services, including the establishment of a stewardship fund;

(2) A requirement that the unit hold contract funds in a reserve account for outcome payments;

(3) For agriculture services, payment for achievement of baseline water quality requirements for nitrogen, phosphorus, or sediment; or

(4) Terminations prior to the first payment under the contract for the purpose of selling environmental outcomes without penalty to another entity or for any other reason.

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