Entities may decide not to award a contract and to cancel the procurement process.35 Taking such a decision, particularly when the procurement has involved a tender process, is a serious step with potential legal and management risks that should be considered before any decision is made. For example, cancelling a major procurement may impact on the entity's credibility and discourage participation in future procurements.
Cancellation may, nevertheless, be necessary to protect the integrity of procurement processes and avoid the awarding of a contract where, for example, no tenderer has submitted a tender that meets the specified evaluation criteria.
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35 Entities subject to the CPGs can only cancel a procurement when it is determined that awarding a contract is not in the public interest. Examples of situations where this may be the case and a brief discussion about other relevant factors are outlined in Financial Management Guidance No.13, Guidance on the Mandatory Procurement Procedures, paragraph 9.3, p.51.