§ 11-204
299 words·~1 min read·
/md/state-finance-and-procurement/11-204·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§11–204.
(a)A unit may not enter into a procurement contract except as allowed under this Division II.
(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.
(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.