§ 2-1163. Solicitations or awards in violation of law.

(a)

Applicability. This section applies where it is determined by administrative review that a solicitation or award of a contract is in violation of applicable law. For purposes of this section administrative review shall refer to a review by the chief procurement officer, in consultation with the city attorney, or a review by an appropriate procurement or office of contract compliance hearing officer. A determination by the chief procurement officer may be made independently and as a result of the chief procurement officer receiving a decision from an appeals officer that a solicitation or award of a contract is in violation of applicable law.

(b)

Remedies prior to award. If, prior to award, the chief procurement officer, after consultation with the city attorney, determines that a solicitation or proposed award of a contract is in violation of law, the solicitation or proposed award shall be canceled or revised to comply with the law.

(c)

Remedies after award. If, after an award, the chief procurement officer, after consultation with the city attorney, determines that a solicitation or award of a contract is 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 doing so is in the best interest of the city; or

b.

If services or work have not commenced under the contract, it may be terminated and the person awarded the contract shall be compensated for the actual expenses reasonably incurred in preparing to perform and in terminating its performance under the contract, plus a reasonable profit, prior to the termination; or

c.

If services or work have commenced under the contract, it may be terminated and the person awarded the contract shall be compensated for the actual expenses reasonably incurred in preparing to perform and in terminating its performance under the contract, plus a reasonable profit, prior to the termination, less any amount previously paid to it under the contract.

(2)

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

a.

The contract may be declared null and void; or

b.

The contract may be ratified and affirmed if such action is in the best interests of the city, without prejudice to the city's right to such damages as may be appropriate.

(Ord. No. 2009-78(09-O-1876), § 3, 12-15-09)