Complaint Alleging Restricted Competition

A firm filed a complaint with GAO alleging that a 100-percent performance bond requirement imposed by a grantee of the Department of Health and Human Services unduly restricted competition. The firm stated that it made exhaustive efforts to obtain the bonds before contacting the grantee to clarify requirements. At that time, the firm was told that the requirements would not be waived. Consequently, the complainant did not submit a bid. The protester argued that the bond requirement was unusual, excessive, and discriminating in that small businesses were unable to meet it. In the past, timeliness rules have not been imposed on grant complaints. Recently, GAO stated that in the future only complaints filed within a reasonable time would be considered. A complaint such as this, alleging deficiencies apparent on the face of the solicitation, must be filed prior to bid opening. The complainant's time-stamped letter was received by GAO after bid opening and could not be considered on its merits. Accordingly, the complaint was dismissed.