Disqualification

A Procuring Entity (PE) sought guidance as follows:

1. Further to a past contract with a particular supplier, the Procuring Entity (PE) was extremely dissatisfied with the poor conduct of the personnel assigned to perform the services.  However, upon completion of the evaluation exercise for a new contract period, the said supplier achieved the highest score and would be eligible as the successful bidder.  The procurement method used was open bidding by national competitive bidding.
2. The PE has on record reports and other supporting documentation that would have captured the previous problems.
3. The PE sought guidance on whether the above gives reason for rejecting the bid and moving to the next-ranked bidder.  If so, what are the steps that should be taken?