Appendix 7 - 2026 RFP MBE Liquidated Damages (1).docx
DOCX document 18 KB Posted
- Solicitation number
- BPM057747
- Issued by
- Baltimore County, Maryland
About this file
This appendix outlines the Minority Business Enterprise (MBE) liquidated damages provisions for RFP 2026-XX issued by the Maryland Department of General Services on behalf of the Maryland Lottery and Gaming Control Agency for a Lottery Central Monitoring and Control System and Related Services contract. The document establishes the State's framework for enforcing compliance with MBE program requirements and contract provisions through a structured system of penalties when contractors fail to meet their good faith MBE obligations. The State acknowledges that non-compliance causes damages including loss of goodwill, detrimental economic development impact, and diversion of internal resources, and specifies that liquidated damages are considered reasonably proximate to anticipated losses.
The liquidated damages schedule establishes specific financial penalties for five categories of violations: $100 per day for failure to submit required monthly payment reports; $100 per MBE subcontractor for failure to include payment report submission provisions in subcontractor agreements; the difference between committed and actual MBE participation value for improper termination or scope changes with MBE subcontractors; the difference between committed total MBE participation goals and actual achievement for failure to meet overall participation targets; and $100 per day for failure to promptly pay undisputed subcontractor amounts. The State retains the right to withhold invoice payments as set-off against liquidated damages owed and reserves all termination and remedial rights under the contract and applicable law.
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Other files
| File | Type | Posted |
|---|---|---|
| BPM057747_LCMCS_2026_RFP v2.docx | DOCX document | |
| Appendix 8 - 2026 RFP Deliverabls - Addendum (1).docx | DOCX document | |
| Appendix 4 - 2026 RFP Required Reports and Queries (1).docx | DOCX document | |
| Appendix 1 - 2026 RFP ABBREVIATIONS and DEFINITIONS (1) (1).docx | DOCX document | |
| Appendix 9. Electronic Transaction Fee.docx | DOCX document | |
| Appendix 10 - SAMPLE CONTRACT (1).pdf | ||
| Appendix 6 - RFP 2026 Liquidated Damages other than MBE (1).docx | DOCX document | |
| Appendix 3 - 2026 RFP Data Feeds – Types of Filed and Frequency of Uploads (1).docx | DOCX document | |
| Appendix 5 - 2026 RFP Information Technology - Addendum (1).docx | DOCX document | |
| Appendix 9 - 2026 RFP Monitors Deployed (1).docx | DOCX document | |
| Appendix 2 - BM057747 Price Form and Instructions.xlsx | XLSX spreadsheet | |
| BPM057747 LCMCS 2026 RFP.docx | DOCX document | |
| BPM057747 LCMCS 2026 RFP.docx | DOCX document |
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Text version
REQUEST FOR PROPOSALS (RFP) 2026-XX
LOTTERY CENTRAL MONITORING AND CONTROL SYSTEM AND RELATED SERVICES
APPENDIX 7
MBE Liquidated Damages The contract requires the contractor to comply in good faith with the Minority Business Enterprise (“MBE”) Program and contract provisions. The State and the Contractor acknowledge and agree that the State will incur damages, including but not limited to loss of goodwill, detrimental impact on economic development, and diversion of internal staff resources, if the Contractor does not comply in good faith with the requirements of the MBE Program and MBE contract provisions. The parties further acknowledge and agree that the damages the State might reasonably anticipate to accrue as a result of such lack of compliance are difficult to ascertain with precision.
Therefore, upon issuance of a written determination by the State that the Contractor failed to comply in good faith with one or more of the specified MBE Program requirements or contract provisions, the Contractor shall pay liquidated damages to the State at the rates set forth below. The Contractor expressly agrees that the State may withhold payment on any invoices as set-off against liquidated damages owed. The Contractor further agrees that for each specified violation, the agreed upon liquidated damages are reasonably proximate to the loss the State is anticipated to incur as a result of such violation.
a. Failure to submit each monthly payment report in full compliance with COMAR 21.11.03.13B (3): $ 100.00 per day until the monthly report is submitted as required.
b. Failure to include in its agreements with MBE subcontractors a provision requiring submission of payment reports in full compliance with COMAR 21.11.03.13B (4): $ 100.00 per MBE subcontractor.
c. Failure to comply with COMAR 21.11.03.12 in terminating, canceling, or changing the scope of work/value of a contract with an MBE subcontractor and/or amendment of the MBE participation schedule: the difference between the dollar value of the MBE participation commitment on the MBE participation schedule for the specific MBE firm and the dollar value of the work performed by that MBE firm for the contract.
d. Failure to meet the Contractor’s total MBE participation goal and subgoal commitments: the difference between the dollar value of the total MBE participation commitment on the MBE Participation Schedule and the MBE participation actually achieved.
e. Failure to promptly pay all undisputed amounts to a subcontractor in full compliance with the prompt payment provisions of the Contract: $ 100.00 per day until the undisputed amount due to the subcontractor is paid.
Notwithstanding the use of liquidated damages, the State reserves the right to terminate the contract and exercise all other rights and remedies provided in the Contract or by law.”
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