# State Finance and Procurement (GSF)

## Title 11. Definitions; General Provisions

### Subtitle 2. General Provisions

#### Section 11-204

(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.

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Md. Code Ann., State Fin. & Proc. (as displayed at mgaleg.maryland.gov, October 16, 2026)