[Protest Against Bonding Requirements in VA Solicitation for Audiovisual Services]
Highlights
A firm protested the bonding requirements in a Veterans Administration (VA) small business set-aside solicitation for audiovisual services, contending that the: (1) requirements precluded small businesses from competing because such businesses generally lacked sufficient funds to obtain the required bonds; and (2) cost comparison was defective, since VA did not have to include bonding costs in its cost estimate. GAO held that: (1) VA failed to show that the bond amounts were reasonable; (2) the fact that the government had a cost advantage due to its self-insurance capability did not make the cost comparison defective; and (3) the protester was entitled to reimbursement for its bid and protest preparation costs. Accordingly, the protest was sustained, and GAO recommended that VA cancel and resolicit the requirement with bond amounts related to the government's actual needs.