Maryland Statutes
Subtitle 2 - General Provisions
Section 11-204 - Compliance With Division; Penalties for Noncompliance

(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.