Protest of Bid Rejection as Nonresponsive

A firm protested the rejection of its low bid as nonresponsive by the Seventh Coast Guard District. The bid, executed by the president of the firm in the name of the firm, certified that the firm was a corporation incorporated in Florida. In determining the bid as nonresponsive, the Coast Guard reported that the firm was not a legal entity under Florida law as of the bid opening date and did not become one until 12 days later when its corporate existence commenced. The protester contended that it was a de facto corporation according to State law which provides that a de facto corporation is a corporation in fact and possesses all powers of a de jure corporation. Generally, an advertised award may not be made to an entity different from that which submitted the bid, because it could serve to undermine sound competitive bidding procedures by facilitating the submission of bids through irresponsible parties whose bids could be avoided or backed up as their interests dictate. GAO held that in this case an award to the protester would be an award to the same entity submitting the bid, and that there would be no substitution of a bidding entity. Pursuant to State law the president of the firm would be estopped from denying the corporate existence of the firm on the date of bid opening even though the articles of incorporation were not filed until 12 days later. GAO believed the protester intended to be bound by its bid and would not have an unfair opportunity to avoid performance after award without liability. The protest was sustained.