§ 11–204
Statutes in effect as of October 1, 2026.
Md. Code Ann., State Fin. & Proc. § 11-204 (2026)
Title 11. Definitions; General Provisions
Subtitle 2. General Provisions
§ 11–204LinkCopy Citation
(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.