If the successful bidder refuses or fails to accept a purchase order or enter into a contract, as the case may be, within 10 days after he or she has been notified of the award, his or her bid security shall be forfeited to the city and the City Council may make the award to the next lowest responsible bidder. If the award is thus made to the next lowest responsible bidder, the amount of the lowest bidder’s security shall be applied by the city to the difference between the lowest bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. If there is not enough bid security to compensate the city for its loss, the defaulting bidder shall be liable for the deficit.
(1969 Code, § 2-307) (Ord. 1975-2, passed 4-14-1975)