B-155095, NOV. 18, 1964

B-155095: Nov 18, 1964

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INC.: FURTHER REFERENCE IS MADE TO YOUR LETTER DATED AUGUST 31. IT APPEARS THAT EIGHT BIDS WERE RECEIVED IN RESPONSE TO AN INVITATION ISSUED BY THE VETERANS ADMINISTRATION HOSPITAL. V5108C-56 WAS AWARDED ON AUGUST 12. WAS ONLY IN THE AMOUNT OF $3. WHICH IS NOT 25 PERCENT OF THE CORPORATION'S BID. WITH THE BID WILL BE HELD TO REQUIRE REJECTION OF THE BID AS NONRESPONSIVE.'. YOUR ATTENTION IS INVITED TO OUR DECISION IN 40 COMP. GEN. 561 AND PART 1 -10.102-5/B) OF THE FEDERAL PROCUREMENT REGULATIONS TO THE EFFECT THAT REJECTION OF A BID IS NOT REQUIRED WHERE THE AMOUNT OF THE BID GUARANTEE. IS EQUAL TO OR GREATER THAN THE DIFFERENCE BETWEEN THE PRICE STATED IN THE BID AND THE PRICE STATED IN THE NEXT HIGHER ACCEPTABLE BID.

B-155095, NOV. 18, 1964

TO AMERICAN REFRACTORIES, INC.:

FURTHER REFERENCE IS MADE TO YOUR LETTER DATED AUGUST 31, 1964, WITH ENCLOSURES, PROTESTING THE AWARD OF CONTRACT UNDER VETERANS ADMINISTRATION PROJECT NO. 65-1, SPECIFICATION NO. 65-12, DATED JULY 14, 1964.

IT APPEARS THAT EIGHT BIDS WERE RECEIVED IN RESPONSE TO AN INVITATION ISSUED BY THE VETERANS ADMINISTRATION HOSPITAL, NORTHPORT, LONG ISLAND, NEW YORK, FOR THE REMOVAL AND REPLACEMENT OF BRICK WORK, BOILER NO. 5, ETC., AT THE HOSPITAL. THE BIDS RANGED IN PRICE FROM $18,892.60 TO $29,830. YOU SUBMITTED THE SECOND LOW BID OF $20,762. ON THE BASIS OF THE LOWEST BID SUBMITTED BY THE W. J. RILEY COMPANY, INC., NEW HYDE PARK, NEW YORK, CONTRACT NO. V5108C-56 WAS AWARDED ON AUGUST 12, 1964, BY THE HOSPITAL TO THAT COMPANY IN THE AMOUNT OF $18,892.60. YOU PROTEST THE AWARD ON THE GROUND THAT THE BID BOND FURNISHED BY THE W. J. RILEY COMPANY, INC., WAS ONLY IN THE AMOUNT OF $3,000, WHICH IS NOT 25 PERCENT OF THE CORPORATION'S BID, AS REQUIRED. YOU REFER TO PARAGRAPH 2, APPEARING ON THE FACE OF THE INVITATION FOR BIDS, STATING:

"NONCOMPLIANCE WITH THE REQUIREMENT THAT A BID BOND OR OTHER BID SECURITY BE SUBMITTED IN THE AMOUNT SPECIFIED, WITH THE BID WILL BE HELD TO REQUIRE REJECTION OF THE BID AS NONRESPONSIVE.'

YOUR ATTENTION IS INVITED TO OUR DECISION IN 40 COMP. GEN. 561 AND PART 1 -10.102-5/B) OF THE FEDERAL PROCUREMENT REGULATIONS TO THE EFFECT THAT REJECTION OF A BID IS NOT REQUIRED WHERE THE AMOUNT OF THE BID GUARANTEE, THOUGH LESS THAN THE AMOUNT REQUIRED BY THE INVITATION FOR BIDS, IS EQUAL TO OR GREATER THAN THE DIFFERENCE BETWEEN THE PRICE STATED IN THE BID AND THE PRICE STATED IN THE NEXT HIGHER ACCEPTABLE BID. THEREFORE, SINCE THE AMOUNT OF THE BID BOND IN THIS CASE, $3,000, IS GREATER THAN THE DIFFERENCE BETWEEN THE AMOUNT OF THE LOW BID AND THE AMOUNT OF THE SECOND LOW BID--- $20,762 MINUS $18,892.60 EQUALS $1,869.40--- IT WAS NOT REQUIRED THAT THE BID OF THE LOW BIDDER, THE W. J. RILEY COMPANY, INC., BE REJECTED BECAUSE OF THE DEFICIENCY IN THE BID BOND.

ACCORDINGLY, WE FIND NO LEGAL OBJECTION TO THE ACTION TAKEN BY THE VETERANS HOSPITAL IN AWARDING CONTRACT NO. V5108C-56 TO THE W. J. RILEY COMPANY, INC., AND, THEREFORE, YOUR PROTEST IS DENIED.