1. (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:

   1. (a)

      1. (i) if the person awarded the contract did not act fraudulently or in bad faith:

         1. (A) the contract may be ratified and affirmed if it is in the best interests of the procurement unit; or
         2. (B) the contract may be terminated; and
      2. (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

   2. (b) if the person awarded the contract acted fraudulently or in bad faith:

      1. (i) the contract may be declared null and void; or
      2. (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. (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