Chapter 01. General Regulations
Regulation .01 Compliance Required.LinkCopy Citation
A.
A State agency may not enter into a procurement contract except as permitted under State Finance and Procurement Article, Division II, and this title.
Regulation .02 Contracts Void for Noncompliance.LinkCopy Citation
A.
Except as provided in Regulation .03 or elsewhere in this title, if a procurement violates this title, the procurement contract is void.
B.
If a procurement contract is void under this regulation, the contractor shall be awarded compensation for actual expenses reasonably incurred under the contract, plus a reasonable profit if the contractor:
(1)
Has acted in good faith;
(2)
Did not directly contribute to a violation of this title; and
(3)
Had no knowledge of the violation before the procurement contract was awarded.
Regulation .03 Contracts Voidable for Noncompliance.LinkCopy Citation
A.
The Board may determine that a void procurement contract is voidable if the Board determines that:
(1)
All parties have acted in good faith;
(2)
Ratification of the procurement contract would not undermine the purposes of this title; and
(3)
The violation, or series of violations, was insignificant or otherwise did not prevent substantial compliance with this title.
B.
If the Board determines that a procurement contract is voidable under §A and that the contractor has not acted in violation of this title, the procurement agency:
(1)
May ratify the contract if the procurement agency determines that ratification is in the best interest of the State; or
(2)
May void the contract and award the contractor compensation for actual expenses reasonably incurred under the contract, plus a reasonable profit.
C.
If the Board determines that a procurement contract is voidable under §A and that the contractor has acted in violation of this title, the procurement agency:
(1)
May void the contract; or
(2)
Without prejudice to the State's right to appropriate damages, may ratify the contract if the procurement agency determines that ratification is in the best interests of the State.
Regulation .04 Delegation of Authority.LinkCopy Citation
A.
The Board hereby delegates to each Department head the authority necessary to make initial determinations under Regulations .02 and .03 as to those contracts within the Department's jurisdiction.
B.
A Department head's initial determination and recommendation under §A shall be presented to the Board for final determination.
C.
When the Department is acting as a procurement agency for a contract subject to review under Regulations .02 and .03, the delegation under §A is not affected unless the Board directs otherwise.
Regulation .05 Incorporation by Reference of Regulatory Provisions In State Procurement Contracts.LinkCopy Citation
A.
A State procurement regulation may not change in any way a contractual obligation that was entered into before the effective date of the regulation.
B.
If a law or regulation requires a procurement contract to contain a particular provision, the law or regulation is satisfied if the contract includes notice of the provision, including a description of its subject matter.
Chapter annotations
Authority: State Finance and Procurement Article, §§12-101, 11-204, 11-206, Annotated Code of Maryland
History: Effective date: July 1, 1981 (8:13 Md. R. II-5)
History: Chapter revised effective January 9, 1989 (15:27 Md. R. 3138)
History: Regulation .02A amended effective April 28, 2014 (41:8 Md. R. 473)
History: Regulation .03A amended effective April 28, 2014 (41:8 Md. R. 473)