[Protest of Bond and Insurance Requirements Under Navy Solicitation for Natural Gas]

B-238208: Apr 5, 1990

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A firm protested the Navy's bonding and insurance requirements under a small-disadvantaged-business set-aside for natural gas, contending that: (1) the bonding requirement was unreasonable; (2) it was impossible to obtain a commercial bond because writers were unwilling to write the required form of bond; and (3) the Navy did not provide enough information to determine the amount or kind of insurance required. GAO held that the: (1) Navy reasonably imposed the bonding requirement to ensure a continuous supply of natural gas; (2) Navy received three other bids that did not take exception to the requirements; and (3) amended requirement specified the amount and type of insurance coverage needed. Accordingly, the protest was denied.