If the head of a purchasing agency or his designee determines that a solicitation or award of a contract is contrary to law, the following apply:

(1) If the determination is made prior to the execution of a contract, the remedies are limited to cancellation of the solicitation or proposed award or revision of the solicitation or proposed award to comply with the law.

(2) If the determination is made after the execution of a contract and the person awarded the contract has not acted fraudulently or in bad faith:

(i) the contract may be ratified and affirmed, provided it is determined by the head of the purchasing agency or his designee that doing so is in the best interest of the Commonwealth;

(ii) the contract, with the consent of all parties, may be modified to comply with the law; or

(iii) the contract may be terminated and the person awarded the contract shall be compensated for the actual expenses reasonably incurred under the contract prior to the termination. Such compensation shall not include loss of anticipated profit, loss of use of money or administrative or overhead costs.

(3) If the determination is made after the execution of a contract and the person awarded the contract has acted fraudulently or in bad faith:

(i) the contract may be ratified and affirmed, provided it is determined by the head of the purchasing agency or his designee that doing so is in the best interest of the Commonwealth and without prejudice to the right of the Commonwealth agency to damages as may be appropriate.

(ii) the contract, with the consent of all parties, may be modified to comply with the law; or

(iii) the contract may be declared void.

(Dec. 3, 2002, P.L.1147, No.142, eff. imd.)

2002 Amendment. Act 142 added section 1711.2.

Cross References. Section 1711.2 is referred to in section 1711.1 of this title.