What must be done after two unsuccessful bids for a contract?

When two unsuccessful bids are received for a contract, the appropriate action is to negotiate the contract. This step allows the public entity to engage with the bidders to discuss potential adjustments or modifications that could lead to a successful agreement. By negotiating, the entity can clarify any misunderstandings in the bid submissions or address issues that may have led to a lack of competitive bids.

Negotiation may involve revisiting the project's requirements, cost expectations, or timelines to attract more favorable responses from the bidders. This is a common practice to ensure that the public works project can proceed without the necessity of completely starting the bidding process over again, which can result in further delays and increased costs.

Re-bidding is not the immediate choice here, as it implies restarting the entire bidding process rather than addressing the reasons behind the initial lack of successful bids. Opening the bids again would not provide any new opportunities for negotiation, and redefining the project scope may necessitate further delays and complications. Therefore, moving forward with contract negotiations after two unsuccessful bids is a strategic approach to resolve the situation effectively.