Maryland State Finance and Procurement Section 13-213

      (a)      In accordance with Title 10, Subtitle 1 of the State Government Article, the Board shall adopt regulations on price and cost principles based on generally accepted accounting principles.

      (b)      The principles adopted by the Board shall be used:

            (1)      as guidelines for negotiations on:

                  (i)      estimated costs or fixed prices;

                  (ii)      price adjustments for contract modifications and change orders; and

                  (iii)      settlements of terminated procurement contracts;

            (2)      to establish the allowability of costs under procurement contract provisions for the reimbursement of costs; and

            (3)      in any other situation that requires the establishment of the estimated or incurred costs of performing a procurement contract.