[Protest of Navy Rejection of Bid for Grounds Maintenance]

B-231855: Nov 4, 1988

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A firm protested the Navy's rejection of its bid for grounds maintenance, contending that the Navy erroneously determined that its bid bond sureties' net worth was inadequate. GAO held that the Navy improperly rejected the protester's bid, since the: (1) appraised fair market value of the sureties' properties was substantially higher than the tax appraised value that the Navy used; and (2) sureties' properties had a net worth sufficient to cover the difference between the protester's bid and the next low bid. GAO also held that the protester was entitled to reimbursement for its protest preparation costs. Accordingly, the protest was sustained, and GAO recommended that the Navy terminate the awardee's contract and make award to the protester, if otherwise appropriate.