(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.
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