What should a municipality do if a vendor is awarded a contract but fails to perform?

When a vendor is awarded a contract but fails to perform, terminating the contract and re-bidding is a prudent course of action for the municipality. This strategy helps ensure that the municipality can seek out reliable vendors who can meet the contractual obligations, maintaining the integrity and effectiveness of municipal operations. By re-bidding, the municipality opens the opportunity to evaluate new proposals that may provide better terms, pricing, or overall service quality.

Also, if the current vendor is unable to fulfill their responsibilities, it often indicates ongoing risks to the project or service, necessitating a fresh start with a new vendor who can be held accountable from the outset. This process also serves to uphold public trust, as taxpayers expect municipalities to effectively manage contracts and utilize public funds responsibly.

First consulting legal counsel is indeed a wise step in some contexts, particularly to understand any potential ramifications or penalties associated with the contract termination. However, the priority in this scenario would be to ensure continuity of service by finding a competent vendor through re-bidding. Ultimately, allowing the vendor to fix the issues may not be effective, especially if their past performance raises doubts about future reliability.