Home Table of Contents

§ 11-204. Sanctions for noncompliance

West's Annotated Code of MarylandState Finance and Procurement

West's Annotated Code of Maryland
State Finance and Procurement
Division II. General Procurement Law [Titles 11-End] (Refs & Annos)
Title 11. Definitions; General Provisions (Refs & Annos)
Subtitle 2. General Provisions (Refs & Annos)
MD Code, State Finance and Procurement, § 11-204
§ 11-204. Sanctions for noncompliance
Currentness
Compliance required
(a) A unit may not enter into a procurement contract except as allowed under this Division II.
Contracts void for noncompliance
(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.
Contracts voidable for noncompliance
(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.

Credits

Added by Acts 1988, c. 48, § 2, eff. Oct. 1, 1988.
MD Code, State Finance and Procurement, § 11-204, MD STATE FIN & PROC § 11-204
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document