# COMAR Title 21 — State Procurement Regulations

## Subtitle 03 — State Procurement Regulations and Contracts

### Chapter 01 — General Regulations

**Authority:** State Finance and Procurement Article, §§12-101, 11-204, 11-206, Annotated Code of Maryland

**Administrative History:** Effective date: July 1, 1981 (8:13 Md. R. II-5)

**Administrative History:** Chapter revised effective January 9, 1989 (15:27 Md. R. 3138)

**Administrative History:** Regulation .02A amended effective April 28, 2014 (41:8 Md. R. 473)

**Administrative History:** Regulation .03A amended effective April 28, 2014 (41:8 Md. R. 473)

#### Regulation .01 Compliance Required.

*COMAR 21.03.01.01*

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.

*COMAR 21.03.01.02*

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.

*COMAR 21.03.01.03*

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.

*COMAR 21.03.01.04*

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.

*COMAR 21.03.01.05*

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.