63G-6a-1907.  Effect of violation found after award of contract.

(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:

Terms Used In Utah Code 63G-6a-1907

  • Affirmed: In the practice of the appellate courts, the decree or order is declared valid and will stand as rendered in the lower court.
  • Contract: A legal written agreement that becomes binding when signed.
  • Contract: means an agreement for a procurement. See Utah Code 63G-6a-103
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Person: means :Utah Code 68-3-12.5
  • Procurement: means the acquisition of a procurement item through an expenditure of public funds, or an agreement to expend public funds, including an acquisition through a public-private partnership. See Utah Code 63G-6a-103
  • Solicitation: means an invitation for bids, request for proposals, or request for statement of qualifications. See Utah Code 63G-6a-103
(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.

Amended by Chapter 196, 2014 General Session