[Legality of Navy Deviation From FAR in Prohibiting Individual Sureties]

A firm and several congressional members requested a decision regarding the legality of the Navy's prohibition against the use of individual sureties to obtain payment and performance bonds under construction contracts, contending that the prohibition constituted an impermissible deviation from the Federal Acquisition Regulation (FAR). GAO held that the Navy's deviation: (1) did not violate any statute or executive order, or FAR; and (2) was part of a pilot program for improving the effectiveness of the Navy's procurement efforts. Accordingly, the Navy's temporary deviation from FAR was allowed.