HARRY HUGHES, Governor                                       3505

(4)  Within 180 days after receipt of the claim, the
agency head, Secretary, or equivalent official shall investigate
the claim and notify the contractor, in writing, of a decision
regarding resolution of the claim. The 180 day time limit may be
extended by mutual agreement of the parties.

(5)  (i) A decision not to pay a claim is a final
action for the purposes of appeal to the Board of Contract
Appeals.

(ii) Failure to reach a decision within the
time limits under paragraph (4) of this subsection shall be
deemed to be a decision not to pay the claim.

(6)  At the time of final payment, the agency shall:

(i) release the retainage due to the
contractor; and

(ii) pay any interest accrued on the retainage
due and payable to the contractor from the time of payment of the
semifinal estimate.

(D) (1) NOTWITHSTANDING ANY CONTRACT PROVISION TO THE
CONTRARY, THE BOARD OF CONTRACT APPEALS, IN ITS DISCRETION, MAY
AWARD INTEREST ON AMOUNTS FOUND DUE THE CONTRACTOR ON A CLAIM
DECIDED UNDER THIS SECTION.

(2) INTEREST SHALL MAY ACCRUE BEGINNING ON A DATE
PRIOR TO THE DECISION OF THE BOARD, DETERMINED BY THE BOARD TO BE
JUST FAIR AND FAIR REASONABLE AFTER HEARING ALL OF THE FACTS OF
THE CLAIM UNTIL THE DATE OF THE DECISION BUT INTEREST MAY NOT
ACCRUE FROM A PATE THAT IS BEFORE THE RECEIPT OF A CLAIM BY THE
PROCUREMENT OFFICER.

(3) ACCRUAL OF INTEREST SHALL TERMINATE WHEN PAYMENT
IS MADE.

(4) (3) THE RATE OF INTEREST UNDER THIS SUBSECTION
SHALL BE AT THE RATE SPECIFIED IN § 11-107(A) OF THE COURTS AND
JUDICIAL PROCEEDINGS ARTICLE OF THE CODE.

[(d)] (E) The decision of the procurement officer to
resolve or not to resolve a dispute shall be reviewed by the
agency head unless otherwise provided by regulation. If the
agency is part of one of the principal departments or an
equivalent unit of government, the decision shall be reviewed by
the Secretary or his equivalent unless delegated to the agency
head by regulation. The reviewing authority may approve or
disapprove the procurement officer's decision. In disapproving a
decision not to resolve the dispute, the reviewing authority may
order the procurement officer to effect a resolution. The
decision of the reviewing authority is deemed final action by the
agency, department, or its equivalent, as the case may be.