[Protest of Navy Procurement Requirements]

B-207982: Nov 9, 1982

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An individual protested the scope of work and the imposition of bonding requirements in a Navy solicitation for facility support services at a navy supply corps school. The protester contended that the Navy used the scope of work and the bonding requirements in a calculated attempt to subvert the A-76 contracting-out program. GAO stated that bid protests alleging improprieties which are apparent prior to bid opening must be filed prior to that date to be timely. Since the protester raised the issue approximately 2 months after bid opening, the protest was untimely filed and not for consideration. With regard to the protest of the bonding requirements, GAO stated that the Navy properly justified using the requirements on the grounds that: (1) the contractor would be provided with a large inventory of Government-owned material, and (2) contractor nonperformance would result in a significant loss to the Government. Further, since the contracting officer has discretion to decide whether bonding requirements are necessary in a procurement, GAO will impose no objection to those requirements when the protester does not show that the decision was unreasonable or arbitrary; and an undated Navy report satisfied GAO that the agency had justification for its actions. Accordingly, the protest was dismissed in part and denied in part.