(a) Generally.

1. (1) Any procurement described in a solicitation document may be cancelled, or any or all offers may be rejected in whole or in part, when the cancellation or rejection is in the best interest of the Office of the Arkansas Lottery as determined by the office.
2. (2) The reasons for the cancellation or rejection must be made a part of the solicitation file.
3. (3) The office is not liable to any offeror for any loss or expense caused by or resulting from the cancellation or rejection of a solicitation document, offer, or award.

(b) Offer findings. The office shall reject an offer upon the office’s finding that the offer:

1. (1) Is contingent upon the office’s acceptance of terms and conditions, including specifications, that differ from the solicitation document;
2. (2) Takes exceptions to terms and conditions, including specifications, set forth in the solicitation document;
3. (3) Attempts to prevent public disclosure of matters in contravention of the terms and conditions of the solicitation document or in contravention of applicable law;
4. (4) Offers goods or services that fail to meet the specifications of the solicitation document;
5. (5) Is late;
6. (6) Is not in substantial compliance with the solicitation document requirements; or
7. (7) Is not in substantial compliance with all prescribed public procurement procedures.

(c) Offeror findings. The office shall reject an offer upon the office’s finding that the offeror:

1. (1) Has been debarred pursuant to 23 CAR § 372-209;
2. (2) Has not properly executed bid or proposal security as required by the solicitation document; or
3. (3) Is nonresponsible.

(d) Disposition of offers.

1. (1) Prior to closing.

   1. (A) If the office cancels a solicitation prior to closing, the office shall return all offers it received to offerors unopened, provided the offeror submitted its offer in a hard copy format with a clearly visible return address.
   2. (B) If there is no return address on the envelope, the office shall open the offer to determine the source and then return it to the offeror.
2. (2) After closing. If the office cancels a solicitation after closing, the office shall keep the offers in the procurement file.
3. (3) Rejection of all offers. If the office rejects all offers, the office shall keep all offers in the procurement file.