16.40.030 Remedies for solicitations or awards in violations of law.
A. If prior to bid opening or the closing date for receipt of proposals, the Chief Procurement Officer, after consultation with the Borough Attorney, determines that a solicitation is in violation of federal, state or municipal law, then the solicitation shall be canceled or revised to comply with applicable law.
B. If after bid opening or the closing date for receipt of proposals, the Chief Procurement Officer, after consultation with the Borough Attorney, determines that a solicitation or a proposed award of a contract is in violation of federal, state or municipal law, then the solicitation or proposed award shall be canceled.
C. If after an award, the Chief Procurement Officer, after consultation with the Borough Attorney, determines that a solicitation or award of a contract was in violation of applicable law, then:
1. If the person awarded the contract has not acted fraudulently or in bad faith:
a. The contract may be ratified and affirmed, provided it is determined that so doing is in the best interests of the Borough, or
b. The contract may be terminated and the person awarded the contract shall be compensated for the actual expenses reasonably incurred under the contract, plus a reasonable profit, prior to the termination;
2. If the person awarded the contract has acted fraudulently or in bad faith, the contract may be declared null and void or voidable, if such action is in the best interests of the Borough. (Ord. 2002-29 § 40, 2002; Ord. 82-69, 1982. 2004 Code § 16.65.040.)