Section 26: Rejection of Bids or Cancellation of Procurement Proceedings

1) The Public Entity may, in the following circumstances, reject all bids or cancel the procurement proceedings:

(a) If none of the bids are substantially responsive pursuant to clause (d) of sub-section (2) of Section 23,

(b) If the bid price of the lowest evaluated substantially responsive bid is substantially above the cost estimate, or

(c) If requisitioned goods, construction works, consultancy services or other services are no longer required.

2) Notwithstanding anything contained in sub-section (1), no bid shall be rejected, or re-bidding shall be invited only for the reason that only a few bids are or only one bid is substantively responsive.

3) The Public Entity shall have to communicate to all the bidders a notice along with the reason for the rejection of bids or cancellation of the procurement proceedings pursuant to sub-section (1).

4) Where any bidder requests, within thirty days of the communication of notice pursuant to sub-section (3), for grounds for the rejection of all bids or rejection of the procurement proceedings, the Public Entity shall have to communicate such information to that bidder.

5) In making re-invitation to bid because of non-submission of any bid in response to an invitation to bid or cancellation of all bids or cancellation of the bid proceedings pursuant to sub-section (1), the modification shall also be carry out in the bidding documents, technical specifications, cost estimate and terms and conditions of procurement contract as per necessity by reviewing the reasons for such rejection of bids or cancellation of the bid proceedings.

6) Notwithstanding anything contained elsewhere in this Section, if it is proved that the bidder has submitted a bid by collusion among the bidders, such bid shall be rejected.