(a) Any purchase order or contract executed in violation of this chapter and of the rules and regulations promulgated for its enforcement, shall be null and ineffective and, if public funds have been expended in relation therewith, the amount so expended may be recovered in behalf of the Government of the Virgin Islands through proper action instituted for such purpose. Any person who violates the provisions of this chapter shall be fined not more than $1,000 or imprisoned not more than one year or both.
(b) Notwithstanding any other provision of this chapter no purchase order or contract shall be executed between the Government and any person, firm, partnership or corporation who has failed to comply with the terms and conditions of any such purchase order or contract; provided, however, that the Commissioner in appropriate cases may waive this provision. The provisions of this chapter shall not apply to purchase orders or contracts where Federal funds are involved, and where federal law, rules or regulations apply to the procurement of supplies, materials, equipment or contractual services in the Virgin Islands.