18-4-242. Remedies prior to and after award. (1) If a solicitation or award of a contract is in violation of law, the department may apply the remedies provided in subsections (2) and (3).
     (2) If prior to award it is determined that a solicitation or proposed award of a contract is in violation of law, the solicitation or proposed award must be:
     (a) canceled; or
     (b) revised to comply with the law.
     (3) (a) If after an award it is determined that a solicitation or award of a contract is in violation of law and the person awarded the contract has not acted fraudulently or in bad faith, the contract may be:
     (i) ratified and affirmed, provided it is determined that doing so is in the best interests of the state; or
     (ii) terminated, and the person awarded the contract must be compensated for the actual expenses reasonably incurred under the contract, plus a reasonable profit, prior to the termination.
     (b) If after an award it is determined that a solicitation or award of a contract is in violation of law and the person awarded the contract has acted fraudulently or in bad faith, the contract may be:
     (i) declared void; or
     (ii) ratified and affirmed if such action is in the best interests of the state, without prejudice to the state's rights to appropriate damages.
     (4) In the event the matter is reviewed by a court, the court may apply the same remedies provided in subsections (2) and (3).

     History: En. Sec. 10, Ch. 519, L. 1983.