HARRY HUGHES, Governor

3339

knowledge of any violation of this Division II of this article or
the regulations prior to the award of the contract shall be
compensated for costs actually incurred.] AFTER A PROCUREMENT
AGENCY AWARDS A CONTRACT, IF THE AGENCY DECIDES THAT ITS
SOLICITATION OR AWARD WAS IN VIOLATION OF LAW, THEN: UNLESS IT IS
DETERMINED TO BE VOIDABLE UNDER THE PROVISIONS OF PARAGRAPH (2).

(2) THE BOARD MAY DETERMINE THAT A CONTRACT ENTERED
INTO IN VIOLATION OF THIS DIVISION IS MERELY VOIDABLE IF THE
BOARD DETERMINES THAT:

(I) ALL PARTIES HAVE ACTED IN GOOD FAITH:

(II) RATIFICATION WOULD NOT UNDERMINE THE
PURPOSES OF THIS DIVISION; AND

(III) THE VIOLATION OR SERIES OF VIOLATIONS WAS
INSIGNIFICANT OR OTHERWISE DID NOT PREVENT SUBSTANTIAL COMPLIANCE
WITH THE PROVISIONS Of THIS DIVISION.

(3) IF A CONTRACT IS VOID UNDER THIS SUBSECTION, THE
CONTRACTOR SHALL BE AWARDED COMPENSATION FOR ACTUAL EXPENSES
REASONABLE INCURRED UNDER THE CONTRACT, PLUS A REASONABLE PROFIT,
IF THE CONTRACTOR:

(I) ACTED IN GOOD FAITH;

(II) DID NOT DIRECTLY CONTRIBUTE TO A VIOLATION
OF THIS DIVISION; AND

(III) HAD NO KNOWLEDGE OF ANY SUCH VIOLATION
PRIOR TO THE AWARD OF THE CONTRACT.

(4) IF A CONTRACT IS DETERMINED TO BE VOIDABLE UNDER
THIS SUBSECTION:

(1) (I) IF THE PERSON AWARDED THE CONTRACT CONTRACTOR
HAS NOT ACTED FRAUDULENTLY OR IN BAD FAITH IN VIOLATION OF THIS
DIVISION:

(I) 1. THE PROCUREMENT AGENCY, WITH THE

APPROVAL OF THE BOARD OF CONTRACT APPEALS MAY RATIFY AND AFFIRM
THE CONTRACT IF IT DECIDES DETERMINES IN WRITING THAT DOING SO IS
IN THE STATE'S BEST INTEREST; OR

(II) 2. THE PROCUREMENT AGENCY, WITH THE

APPROVAL OF THE BOARD OF CONTRACT APPEALS, MAY TERMINATE THE
CONTRACT, DECLARE THE CONTRACT NULL AND VOID AND AWARD THE PERSON
AWARDED THE CONTRACT SHALL BE COMPENSATED CONTRACTOR COMPENSATION
FOR ACTUAL EXPENSES REASONABLY INCURRED UNDER THE CONTRACT BEFORE
TERMINATION, PLUS A REASONABLE PROFIT; OR

(2) (II) IF THE PERSON AWARDED THE CONTRACT

CONTRACTOR HAS ACTED FRAUDULENTLY OR IN BAD FAITH: IN VIOLATION
OF THIS DIVISION: