Skip to main content
Loading…
This section is included in your selections.

(a) Remedies Prior to an Award. If the Chief Procurement Officer, after consultation with the General Counsel’s Office, determines that a solicitation or proposed award is in violation of any provision of this chapter or other applicable laws or regulations, including but not limited to the legal authorities, the solicitation or proposed award shall be:

(1) Canceled; or

(2) Revised to comply with this chapter, the legal authorities, or other applicable laws.

(b) Remedies After an Award. If the Chief Procurement Officer, after consultation with the General Counsel’s Office, determines that a solicitation or award is in violation of any provision of this chapter, the legal authorities, or other applicable laws or regulations, then:

(1) If the person awarded the contract has not acted fraudulently or in bad faith:

(i) If the violation can be waived without prejudice to WSSC or other bidders or offerors, the preferred action is to ratify and affirm the contract.

(ii) If the violation cannot be waived without prejudice to WSSC or other bidders or offerors, and performance has not begun, and if there is time for resoliciting bids or offers, the contract shall be terminated. If there is no time for resoliciting bids or offers either formally or informally under emergency authority, the contract may be ratified and affirmed.

(iii) If the violation cannot be waived without prejudice to WSSC or other bidders or offerors and if performance has begun, the Chief Procurement Officer, after consultation with the General Counsel’s Office, shall determine whether it is in the best interests of WSSC to terminate the contract or, alternatively, to ratify and affirm the contract. The best interest factors include, but are not limited to, the costs to WSSC in terminating and resoliciting and the progress made toward performing the whole contract.

(iv) If the contract is terminated, 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. If there are no applicable termination provisions in the contract, settlement shall be made on the basis of actual costs directly or indirectly allocable to the contract up to the time of termination. Such costs shall be established in accordance with generally accepted accounting principles. Profit shall be proportionate only to the performance completed up to the time of termination. Anticipated profits are not allowed.

(2) If the person awarded the contract has acted fraudulently or in bad faith:

(i) The contract may be declared null and void. In all cases where a contract is voided, no further payments shall be made under the contract and WSSC may pursue legal action and claim damages under any applicable legal theory; or

(ii) The contract may be ratified and affirmed if such action is in the best interests of WSSC, and such action does not prejudice WSSC’s right to pursue legal action and damages as may be appropriate. The best interest factors include, but are not limited to, the costs to WSSC in voiding the contract and resoliciting, and the progress made toward performing the whole contract. WSSC shall be entitled to any damages it can prove under any theory including, but not limited to, contract and tort, regardless of its ratification and affirmation of the contract. (Procurement regulations § 6-103, dated August 1, 2012)