§ 11-204. Compliance with Division; penalties for noncompliance

   (a) Compliance required. -- A unit may not enter into a procurement contract except as allowed under this Division II.

(b) Contracts void for noncompliance. --

   (1) Except as otherwise provided in this Division II, if a procurement violates this Division II, the procurement contract is void.

   (2) Whenever a procurement contract is void under this subsection, the contractor shall be awarded compensation for actual expenses reasonably incurred under the procurement contract, plus a reasonable profit, if the contractor:

      (i) acted in good faith;

      (ii) did not directly contribute to a violation of this Division II; and

      (iii) had no knowledge of the violation before the procurement contract was awarded.

(c) Contracts voidable for noncompliance. --

   (1) Whenever a procurement violates this Division II, the Board may determine that the procurement contract is voidable, rather than void, if the Board determines that:

      (i) all parties acted in good faith;

      (ii) ratification of the procurement contract would not undermine the purposes of this Division II; and

      (iii) the violation or series of violations was insignificant or otherwise did not prevent substantial compliance with this Division II.

   (2) Whenever a procurement contract is voidable under this subsection and the contractor has not acted in violation of this Division II, the unit may:

      (i) ratify the procurement contract if the unit determines that ratification is in the best interests of the State; or

      (ii) void the procurement contract and award the contractor compensation for actual expenses reasonably incurred under the contract, plus a reasonable profit.

   (3) Whenever a procurement contract is voidable under this subsection and the contractor has acted in violation of this Division II, the unit:

      (i) may void the procurement contract; or

      (ii) without prejudice to the State's right to appropriate damages, may ratify the procurement contract if the unit determines that ratification is in the best interests of the State.

HISTORY: SF § 11-107; 1988, ch. 48, § 2.