(a) Towing contracts shall be awarded by the department on the basis of competitive bidding to the highest qualified bidder. The department shall advertise for such bids, giving reasonable time and public notice. Bidders must submit with their bids a certified check or cashier's check payable to the department in an amount equal to 25 percent of their bid. Bid deposits shall be returned to unsuccessful bidders. If no acceptable bids are received for any parkway zone, the department may negotiate for towing and emergency road services, and award a contract on the basis of such negotiations.

(b) If the apparent highest bidder does not meet all the qualifications established in this Part and in the notice, the department shall make an award to the next highest qualified bidder.

(c) Payment of fee by contractor shall be in three-month increments and shall be received by the department no later than 10 calendar days prior to the beginning of each three-month term. If any payment is not received according to this schedule, contractor will be assessed a penalty fee of one percent of the amount due per day for each day payment is late. If payment is not received by the beginning of the three-month term, contractor will be suspended or terminated. Bid deposit will serve as the first quarterly payment for successful bidders.