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[Protest of Army Rejection of Bids as Nonresponsive]

B-226346,B-226347 Published: May 28, 1987. Publicly Released: May 28, 1987.
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Highlights

A firm protested the Army's rejection of its low bids as nonresponsive under two solicitations for floodway excavation and repair. The Army rejected the bids because the protester's letters of credit were not sufficient bid guarantees. The protester contended that: (1) the Army improperly determined that its letters of credit were revocable; (2) under applicable state precedent, its letters of credit were irrevocable; and (3) it submitted replacement bid guarantees after the Army determined that its original guarantees were inadequate. GAO held that: (1) the letters of credit incorporated a standard provision that rendered them revocable and inadequate as bid guarantees; (2) the state cases that the protester cited were inapplicable to the instant procurements; and (3) the protester could not cure its nonresponsive bids after bid opening. Accordingly, the protests were denied.

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Army procurementBid guaranteesBid rejection protestsBid responsivenessLetters of credit