[Protest of Bid Rejection Under DLA Solicitation]

B-221314: Mar 12, 1986

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A firm protested the Defense Logistics Agency's (DLA) rejection of its bid because it had forfeited its corporate status for nonpayment of taxes and, therefore, DLA could not bind the corporation to perform. The protester maintained that the corporation was bound by its bid because it was a de facto corporation under Delaware law. GAO found that: (1) at bid opening, Delaware certified that the corporation was not in existence under its laws; and (2) since there was sufficient legal doubt as to whether the protester's bid was a binding offer, DLA properly rejected the bid. Accordingly, the protest was denied.