(A) Prior to bid opening or closing date for receipt of proposals. If prior to the bid opening or the closing date for receipt of proposals, the purchasing agent, after consultation with the Town Solicitor, determines that a solicitation is in violation of federal, state, or municipal law, then the solicitation shall be cancelled or revised to comply with applicable law.
(B) Prior to award. If after bid opening or the closing date for receipt of proposals, the purchasing agent, after consultation with the Town Solicitor, 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 cancelled.
(C) After award. If, after an award, the purchasing agent, after consultation with the Town Solicitor, 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 doing so is in the best interests of the town; or
(b) The contract may be terminated and the person awarded the contract shall be compensated for the actual costs reasonably incurred under the contract, plus a reasonable profit, prior to the termination; or
(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 town.
(Ord. passed 9-19-05)