A Broken Comptroller is Right Once a Term
Maryland Comptroller Brooke Lierman cast the lone dissenting vote this week against a $300 million state information technology contract championed by Governor Wes Moore’s administration, warning that the nine-year deal risks undermining both competition and transparency in state government contracting.
The contract, approved Wednesday on a 2-1 vote by the Board of Public Works, creates a pool of eight pre-approved vendors who will be tapped on a rotational basis to provide digital services and software development for state agencies. Supporters, including the Department of General Services (DGS) and Governor Moore, describe it as a streamlined way to deliver faster, more reliable technology upgrades to state agencies while ensuring a steady pipeline of work for participating firms.
Lierman, however, was not convinced.
“Vendors have expressed frustration to me because when work is assigned on a rotational basis, vendors have very little agency over what work they’re performing on the contract,” she said during the board’s meeting. “If companies decline work orders, they risk being bypassed until the state cycles through the entire vendor list.”
The Comptroller also raised concerns that the contract’s structure would shield high-dollar technology projects from future review by the Board of Public Works. That change, she argued, limits oversight and reduces accountability for how taxpayer dollars are spent.
Transparency, competition, and cost
In a statement following the vote, Lierman elaborated on three specific objections:
- Out-of-state vendors – She noted that the contract leans heavily on large, non-Maryland companies after the administration removed an “economic benefit factors” clause that could have tilted more awards toward local firms.
- Round-robin assignment – Instead of requiring vendors to compete for each work order, the contract distributes assignments in sequence, reducing competition and leaving agencies little flexibility to select the best-suited provider.
- Uncertain tax impacts – Lierman pointed to the recently enacted IT services tax, warning that its costs to the state and vendors remain unclear and could inflate the overall price tag.
“My opposition was based on ensuring best value for our tax dollars,” she said. “I hope this type of contracting vehicle does not become a standard approach for future state procurement.”
A rift with the Governor
By breaking with Moore’s administration, Lierman put herself squarely at odds with the Governor and State Treasurer Dereck Davis, both of whom voted to approve the contract. That split underscores broader tensions in Annapolis over how Maryland balances efficient procurement with open competition.
The Moore administration pitched the deal as a way to modernize state IT services while cutting red tape. But Lierman’s objections suggest the Comptroller sees efficiency being purchased at the cost of oversight, competition, and potentially higher bills down the line.
Impact on Maryland’s business community
Critics outside government have echoed some of Lierman’s concerns. Small and mid-sized Maryland firms could be crowded out under a system that locks in a limited number of vendors for nearly a decade. The rotational model, they argue, may also saddle agencies with providers ill-suited for specific projects, forcing the state to accept “good enough” service rather than “best value.”
DGS officials defended the contract during Wednesday’s meeting, but did not directly address several of the Comptroller’s concerns.
What comes next
With the contract approved, the eight selected firms will begin work as agencies issue orders through the rotational system. Whether the arrangement delivers on its promise of faster, more efficient service—or validates Lierman’s warnings about reduced transparency and higher costs—remains to be seen.
For now, the vote illustrates a rare public rift between Maryland’s Comptroller and its Governor. Lierman may have lost this round 2-1, but her objections ensure that the debate over how the state procures big-ticket technology services is far from finished.
Sources and Further Reading
- Maryland Matters: Lierman balks at $300 million IT contract over competition, transparency concerns
- CityBuzz: Maryland Comptroller raises concerns over $300 million IT contract’s impact on competition and transparency
- Baltimore Sun: Tech tax could make $300M state IT contract more expensive, Comptroller says
- Maryland Comptroller’s Office Press Release: Comptroller Issues Statement Clarifying IT Contract BPW Vote (PDF)
Alex Luther is a contributor for Direct Line News and can be reached at Alex.Luther@mcgopclub.com
Direct Line News is a Maryland-based free-access publication committed to the Republican reform tradition.
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