[Complaint Regarding Housing Authority Contract Awards]

A firm complained about a housing authority's contract awards for electrical renovation work at a housing project. The protester contended that the awards were improper because an awardee failed to submit a required bid bond; it argued that it was entitled to award, even if the awardee's bid was acceptable, because it would have subcontracted a portion of the work to a minority business enterprise (MBE) and its bid was low. The invitation for bids (IFB) required a bid bond and established a goal that MBE subcontractors represent at least 33 percent of the bid price. In addition, the IFB stated that first preference would be given to the low bidder, provided that the low bidder met the MBE goal. GAO found that, the protester's proposal offered no MBE participation. Two firms met the solicitation's MBE goal; however, one of these firms failed to satisfy the bid bond requirement. Subsequent to bid opening, the protester submitted MBE forms which indicated that it would subcontract 31.9 percent of the work to an MBE. A few days later, the housing authority advised the awardee that bid bond documents which it submitted subsequent to bid opening met the bonding requirement and advised the firm that it would receive the award with another firm. The protester contended that the housing authority's acceptance of the additional bond after bid opening was improper. However, the agency found that the bid bond could be properly corrected after bid opening since the solicitation permitted the waiver of minor informalities and such a waiver did not prejudice the protester because it did not qualify for award in any event. GAO agreed that waiver of a deficient bond is permitted where the full amount of the bond is not necessary to protect the agency's financial interests. Therefore, GAO had no reason to object to the housing authority's acceptance of the additional bond after bid opening. Further, GAO found that the protester's proposed subcontractor was not a qualified MBE and its participation would only satisfy a portion of the 33-percent MBE goal of the IFB. Therefore, the protester's complaint on this matter was denied. GAO refused to consider an allegation concerning the awardee's MBE status because it lacked a basis. Accordingly, the complaint was denied in part and dismissed in part.