A. The City Council reserves the right to reject any and all bids if it considers it to be in the best interest of city. Prior to opening, a solicitation may be canceled in whole or in part when it is determined, in writing, that the action is in the city's best interest for reasons including, but not limited to:
1. The city no longer requires the proposed procurement;
2. The city can no longer reasonably expect to fund the procurement; or
3. Proposed amendments to the solicitation would be of such magnitude that a new solicitation is desirable.
B. When a solicitation is canceled prior to opening, notice of cancellation shall be sent to all businesses solicited. The notice of cancellation shall identify the solicitation, the reason for cancellation, and where appropriate, explain that an opportunity will be given to compete on any re-solicitation or any future procurement.
C. A solicitation may be canceled after opening, but prior to award when all bids or proposals are rejected in whole or in part, or when it is determined in writing that the action is in the best interest of the city. Reasons for which a solicitation may be canceled after opening include, but are not limited to the following:
1. The procurement is no longer required;
2. Ambiguous or otherwise inadequate specifications were part of the solicitation;
3. The solicitation did not provide for consideration of all factors of significance to the city;
4. Prices exceed available funds and it would not be appropriate to adjust quantities to come within available funds;
5. All otherwise acceptable bids or proposals received are at clearly unreasonable prices; or
6. There is reason to believe that the bids or proposals may not have been independently arrived at in an open competition, may have been collusive, or may have been submitted in bad faith.
D. A recommendation to reject any or all bids is documented by means of an explanatory letter from the purchasing agent to the City Manager on a City Council agenda form. The reason for cancellation or rejection shall be made part of the bid file and available for public inspection.
(Res. 2008-011, passed 2-19-2008)