[Protest of Navy Contract Award for Heating System Repair]

A firm protested the Navy's cancellation of its contract for heating system repairs because of a deficient bid bond, and the subsequent contract award to the next low bidder, contending that its submission of performance and payment bonds upon award cured its inadequate bid bond and any financial risk to the government. The protester also claimed that it incurred financial losses from commitments and expenditures it made before cancellation. GAO held that: (1) a bidder who failed to submit a proper guarantee could refuse to submit the required bid guarantee after reviewing its competitors' bids at bid opening; (2) a bid that contained a guarantee in an insufficient amount was not responsive; and (3) expenses incurred under an improperly awarded contract did not make the agency's award in the first instance proper. Accordingly, the protest was denied.