Sec. 21.06.02.02. Cancellation of Invitations for Bids or Requests for Proposals

A. Notice. Each solicitation issued by a procurement agency shall state that the solicitation may be cancelled as provided in this regulation.

B. Cancellation Before Opening.

(1) Before opening of bids or proposals, a solicitation may be cancelled in whole or in part when the procurement agency, with the approval of the appropriate Department head or designee, determines that this action is fiscally advantageous to the State or otherwise in its best interest. Reasons for cancellation include but are not limited to:

(a) The absence of a continued need for the procurement;

(b) When proposed amendments to the solicitation would be of such magnitude and substance that a new solicitation is desirable.

(2) When a solicitation is cancelled before bid or proposal opening, the bids or proposals shall be returned to the vendors submitting them and vendors shall be given notice of the cancellation. The notice of cancellation shall:

(a) Identify the solicitation;

(b) Briefly explain the reason for cancellation; and

(c) If appropriate, explain that opportunity will be given to compete on any resolicitation or any future procurements of a similar nature.

C. Rejection of All Bids or Proposals.

(1) After opening of bids or proposals but before award, all bids or proposals may be rejected in whole or in part when the procurement agency, with the approval of the appropriate Department head or designee, determines that this action is fiscally advantageous or otherwise in the State's best interest. Reasons for rejection of all bids or proposals include but are not limited to:

(a) The absence of a continued need for the procurement;

(b) The State agency no longer can reasonably expect to fund the procurement;

(c) Proposed amendments to the solicitation would be of such magnitude that a new solicitation is desirable;

(d) Prices exceed available funds and it would not be appropriate to adjust quantities to come within available funds;

(e) There is reason to believe that the bids or proposals may not have been independently arrived at in open competition, may have been collusive, or may have been submitted in bad faith;

(f) Bids received indicate that the needs of the State agency can be satisfied by a less expensive equivalent item differing from that on which the bids or proposals were invited; or

(g) All otherwise acceptable bids or proposals received are at unreasonable prices.

(2) A notice of rejection of all bids or proposals shall be sent to all vendors that submitted bids or proposals, and it shall conform to §B(2).

D. Documentation. The determination of the reasons for cancellation or rejection of all bids or proposals shall be made a part of the procurement file.