An invitation for bids, a request for proposals or any other solicitation may be canceled or any or all bids or proposals may be rejected in whole or in part when it is in the best interest of the state agency or a local public body. A determination containing the reasons for cancellation shall be made part of the procurement file. If no bids are received or if all bids received are rejected and if the invitation for bid was for any tangible personal property, construction or service, then new invitations for bids shall be requested. If upon rebidding the tangible personal property, construction or services, the bids received are unacceptable, or if no bids are secured, the central purchasing office may purchase the tangible personal property, construction or services in the open market at the best obtainable price.

History: Laws 1984, ch. 65, § 104; 1987, ch. 348, § 12.

Evaluation of proposals. — All the acts in question by the city - introducing a locality requirement after the bids were opened, awarding the contract to the fourth-ranked bidder, and rejecting the proposals after making a contract award - were arbitrary and capricious. Had the city simply rejected all proposals at any point before making an award, this matter would not be before the court. Planning & Design Solutions v. City of Santa Fe, 1994-NMSC-112, 118 N.M. 707, 885 P.2d 628.

Am. Jur. 2d, A.L.R. and C.J.S. references. — Public contracts: authority of state or its subdivision to reject all bids, 52 A.L.R.4th 186.