B-143373, AUG. 12, 1960

B-143373, AUG. 12, 1960

TO PETROLEUM ENGINEERING SERVICE, INC.:

WE REFER AGAIN TO YOUR LETTER OF JUNE 29, 1960, WITH ENCLOSURES, PROTESTING AGAINST THE REJECTION OF YOUR LOW BID SUBMITTED IN RESPONSE TO NAVDOCKS SPECIFICATION NO. 30997/60 ISSUED BY THE NINTH NAVAL DISTRICT FOR THE DISMANTLING OF TWO RADIO TOWERS. YOUR LOW BID IN THE AMOUNT OF $24,600 WAS REJECTED BECAUSE IT WAS ACCOMPANIED BY A BID BOND IN THE AMOUNT OF ONLY $4,920 ALTHOUGH BID SECURITY OF NOT LESS THAN $8,000 WAS REQUIRED BY THE TERMS OF THE INVITATION. AWARD WAS MADE ON JUNE 29, 1960, TO THE NEXT LOW BIDDER AT A PRICE OF $24,994.

IT IS YOUR POSITION THAT THE DEFICIENCY IN THE BID BOND WAS DUE SOLELY TO INADVERTENCE AND THAT THE BONDING COMPANY, AS INDICATED BY THEIR TELEGRAM OF JUNE 27, WAS RESPONSIBLE FOR THE ERROR AND STANDS READY AT ANY TIME TO PROVIDE A BID BOND IN THE NECESSARY AMOUNT.

SUBSECTION 1.4 OF THE SPECIFICATION PROVIDES THAT EACH BIDDER SHALL SUBMIT WITH HIS BID A GUARANTEE IN THE AMOUNT OF $8,000. SUBSECTION 3.2 STATES "BID GUARANTEE WILL BE REQUIRED AS SPECIFIED HEREINBEFORE.' BELIEVE THAT THE CLEAR IMPORT OF THESE PROVISIONS IS THAT A BIDDER MUST ACCOMPANY HIS BID WITH A GUARANTEE IN AN ACCEPTABLE FORM IN THE AMOUNT OF NOT LESS THAN $8,000. BID GUARANTEES IN THIS TYPE OF SITUATION ARE NOT REQUIRED EITHER BY STATUTE OR BY OUR OFFICE BUT ARE IMPOSED SOLELY AT THE DISCRETION OF AND IN THE FORM DETERMINED BY THE CONTRACTING AGENCY. THINK YOU WILL AGREE THAT REQUIREMENTS IMPOSED BY THE TERMS OF AN INVITATION OUGHT TO BE ENFORCED AS WRITTEN, FOR IF THEY ARE NOT, OR IF THEY ARE ENFORCED ONLY AT THE OPTION OF THE CONTRACTING OFFICER, THE COMPETITIVE SYSTEM WILL SOON LOSE ITS PURPOSE. IN THE CIRCUMSTANCES, WE ARE OF THE OPINION THAT THE CONTRACTING OFFICER ACTED PROPERLY IN REJECTING YOUR BID. IN THIS CONNECTION, THERE IS ENCLOSED A COPY OF OUR DECISION, B-142824, JUNE 10, 1960, COVERING A SUBSTANTIALLY ANALOGOUS SITUATION.