Effect of violation found after award of contract.

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  • (1) If after award of a contract it is determined administratively or upon administrative or judicial review that a procurement or award of a contract is in violation of law:
    • (a)
      • (i) if the person awarded the contract did not act fraudulently or in bad faith:
        • (A) the contract may be ratified and affirmed if it is in the best interests of the procurement unit; or
        • (B) the contract may be terminated; and
      • (ii) the person awarded the contract shall be compensated for the actual expenses reasonably incurred under the contract before the termination, plus a reasonable profit; or
    • (b) if the person awarded the contract acted fraudulently or in bad faith:
      • (i) the contract may be declared null and void; or
      • (ii) the contract may be ratified and affirmed if it is in the best interests of the procurement unit, without prejudice to the procurement unit's rights to any appropriate damages.
  • (2) Under no circumstances is a person entitled to consequential damages in relation to a solicitation or award of a contract under this chapter, including consequential damages for lost profits, loss of business opportunities, or damage to reputation.




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