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Current as of December 31, 2021 | Updated by FindLaw Staff
(a) A unit may not enter into a procurement contract except as allowed under this Division II.
(b)(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)(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.
Cite this article: FindLaw.com - Maryland Code, State Finance and Procurement § 11-204 - last updated December 31, 2021 | https://codes.findlaw.com/md/state-finance-and-procurement/md-code-state-fin-and-proc-sect-11-204/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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