(a) Requirement for bid security. When deemed necessary by a department head or the Procurement Officer, bid bonds or other equivalent security shall be required and the invitation for bids or request for proposals shall describe the requirements. Bid security shall be a bond provided by a surety company authorized to do business in the State, or the equivalent in cash or some other instrument in a form satisfactory to the Town.
(b) Amount of security bid. Bid security shall be in an amount equal to at least five percent (5%) of the amount of the bid.
(c) Rejection of bids for noncompliance with bid security requirements. When the invitation for bids requires security, noncompliance requires that the bid be rejected unless it is determined that the bid fails to comply in an insubstantial manner with the security requirements.
(d) Withdrawal of bids. After the bids are opened, they shall be irrevocable for the period specified in the invitation for bids, except as provided in Subsection 4-6-220(g). If a bidder is permitted to withdraw its bid before award, no action shall be had against the bidder or the bid security.
(e) Forfeiture of security. Unsuccessful bidders or offerors shall be entitled to the return of any cash deposit following the execution of an agreement with the successful bidder. Unless a specific extension is granted in writing, a successful bidder or offeror shall forfeit any bid bond or equivalent security required by the department head upon its failure to enter into a contract within thirty (30) days after the award. (Prior code 17.03.110)