B-173104(1), SEP 14, 1971

B-173104(1): Sep 14, 1971

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PROTESTANT CONTENDS THAT THE INDIVIDUAL SURETIES SUBMITTED BY NBM WERE INADEQUATE. THE RECORD INDICATES THAT THE PROPERTY POSTED AS SECURITY BY THE SURETIES WAS MORE THAN ADEQUATE TO COVER THE PENAL SUM OF THE BOND EVEN EXCLUDING CERTAIN ASSETS FOR WHICH VALUES COULD NOT READILY BE DETERMINED. THE PROTEST IS DENIED. INC.: REFERENCE IS MADE TO YOUR LETTER DATED MAY 26. WE HAVE BEEN INFORMALLY ADVISED THAT AWARD WAS MADE ON OR ABOUT JUNE 25. EACH INDIVIDUAL SURETY IS REQUIRED TO COMPLETE AN AFFIDAVIT OF INDIVIDUAL SURETY TO BE SUBMITTED WITH THE BOND. YOU CONTEND THAT THE ASSETS LISTED WERE INFLATED IN VALUE. AN EXAMINATION OF THE RECORD SHOWS THAT THE BID SUBMITTED BY NBM WAS A RESPONSIVE BID WITH A BID GUARANTY ATTACHED.

B-173104(1), SEP 14, 1971

BID PROTEST - INDIVIDUAL SURETIES DECISION DENYING PROTEST AGAINST THE AWARD OF A CONTRACT TO NATIONWIDE BUILDING MAINTENANCE (NBM), UNDER AN IFB ISSUED BY HEADQUARTERS, MILITARY DISTRICT OF WASHINGTON. PROTESTANT CONTENDS THAT THE INDIVIDUAL SURETIES SUBMITTED BY NBM WERE INADEQUATE. THE RECORD INDICATES THAT THE PROPERTY POSTED AS SECURITY BY THE SURETIES WAS MORE THAN ADEQUATE TO COVER THE PENAL SUM OF THE BOND EVEN EXCLUDING CERTAIN ASSETS FOR WHICH VALUES COULD NOT READILY BE DETERMINED. ACCORDINGLY, THE PROTEST IS DENIED.

TO CENTRAL BUILDING MAINTENANCE, INC.:

REFERENCE IS MADE TO YOUR LETTER DATED MAY 26, 1971, WITH ENCLOSURE, PROTESTING AWARD OF A CONTRACT TO THE APPARENT LOW BIDDER, NATIONWIDE BUILDING MAINTENANCE (NBM), UNDER IFB DABG13-71-B-0078, ISSUED APRIL 23, 1971, BY HEADQUARTERS, MILITARY DISTRICT OF WASHINGTON, WASHINGTON, D.C. WE HAVE BEEN INFORMALLY ADVISED THAT AWARD WAS MADE ON OR ABOUT JUNE 25, 1971.

IN RESPONSE TO THE INVITATION REQUIREMENT FOR A 20 PERCENT BID GUARANTY, NBM SUBMITTED A BID BOND WITH INDIVIDUAL SURETIES RATHER THAN A CORPORATE SURETY. EACH INDIVIDUAL SURETY IS REQUIRED TO COMPLETE AN AFFIDAVIT OF INDIVIDUAL SURETY TO BE SUBMITTED WITH THE BOND. THE AFFIDAVIT CALLS FOR A LISTING OF THE INDIVIDUAL SURETY'S ASSETS TOGETHER WITH VALUES FOR SUCH ASSETS. YOU CONTEND THAT THE ASSETS LISTED WERE INFLATED IN VALUE.

AN EXAMINATION OF THE RECORD SHOWS THAT THE BID SUBMITTED BY NBM WAS A RESPONSIVE BID WITH A BID GUARANTY ATTACHED. THE QUESTION HERE IS THE ADEQUACY OF THE BOND. BEFORE THE CONTRACTING OFFICER MADE AN AWARD TO NBM, THE DOCUMENTS SUBMITTED BY THE SURETIES WERE CAREFULLY EXAMINED BY THE PROCUREMENT LAW DIVISION, WHICH CONCLUDED THAT THE PROPERTY POSTED BY THE SURETIES AS SECURITY WAS MORE THAN ADEQUATE TO COVER THE PENAL SUM OF THE BOND EVEN EXCLUDING CERTAIN ASSETS FOR WHICH VALUES COULD NOT READILY BE DETERMINED.

YOU CONTEND ALSO THAT THE SAME SURETIES HAVE BEEN UTILIZED BY NBM IN CONNECTION WITH OTHER STILL PENDING GOVERNMENT PROCUREMENTS CREATING A POTENTIAL LIABILITY IN EXCESS OF THE ASSETS LISTED EVEN ACCEPTING THE LISTING AT FACE VALUE. THE OTHER PROCUREMENTS ARE NOT IDENTIFIED AND EACH SITUATION MUST BE CONSIDERED ON THE BASIS OF THE FACTS EXISTING AT THE PERTINENT TIME. HOWEVER, WE FIND NOTHING IN THE BONDS OR RELATED FORMS WHICH WOULD LIMIT THE NUMBER OF BONDS ON WHICH INDIVIDUALS MAY APPEAR AS SURETIES.

IN ACCORDANCE WITH THE FOREGOING, YOUR PROTEST IS DENIED.