B-224266, OCT 9, 1986, 86-2 CPD 415
Highlights
PROCUREMENT - SEALED BIDDING - BID GUARANTEES - RESPONSIVENESS - CONTRACTORS - IDENTIFICATION DIGEST: WHERE A BID IS SUBMITTED IN THE NAME OF ONE FIRM AND IS ACCOMPANIED BY A LETTER OF CREDIT FOR THE REQUIRED BID GUARANTEE IN THE NAME OF ITS PARENT COMPANY. THE BID GUARANTEE IS MATERIALLY DEFICIENT AND THE BID MUST BE REJECTED AS NONRESPONSIVE. THE CORPS DETERMINED THAT ENSCO'S BID WAS NONRESPONSIVE BECAUSE THE PRINCIPAL NAMED IN ITS BID GUARANTEE WAS NOT THE BIDDER. BID GUARANTEE REQUIREMENTS ARE A MATERIAL PART OF AN IFB THAT THE CONTRACTING OFFICER CANNOT WAIVE. A BID BOND WHICH NAMES A PRINCIPAL DIFFERENT FROM THE NOMINAL BIDDER IS DEFICIENT AND THE DEFECT MAY NOT BE WAIVED AS A MINOR INFORMALITY OR CORRECTED AFTER OPENING.
B-224266, OCT 9, 1986, 86-2 CPD 415
PROCUREMENT - SEALED BIDDING - BID GUARANTEES - RESPONSIVENESS - CONTRACTORS - IDENTIFICATION DIGEST: WHERE A BID IS SUBMITTED IN THE NAME OF ONE FIRM AND IS ACCOMPANIED BY A LETTER OF CREDIT FOR THE REQUIRED BID GUARANTEE IN THE NAME OF ITS PARENT COMPANY, THE BID GUARANTEE IS MATERIALLY DEFICIENT AND THE BID MUST BE REJECTED AS NONRESPONSIVE.
ENSCO ENVIRONMENTAL SERVICES, INC.:
ENSCO ENVIRONMENTAL SERVICES, INC. (ENSCO) PROTESTS THE REJECTION OF ITS LOW BID UNDER INVITATION FOR BIDS (IFB) NO. DACW41-86-B-0121, ISSUED BY THE ARMY CORPS OF ENGINEERS. THE CORPS DETERMINED THAT ENSCO'S BID WAS NONRESPONSIVE BECAUSE THE PRINCIPAL NAMED IN ITS BID GUARANTEE WAS NOT THE BIDDER. WE DISMISS THE PROTEST.
THE BANK WHICH ISSUED THE LETTER OF CREDIT AS THE REQUIRED BID GUARANTEE ERRONEOUSLY DESIGNATED THE PROTESTER'S PARENT COMPANY AS THE PRINCIPAL. THE PROTESTER ARGUES THAT THE CORPS SHOULD WAIVE THE ERROR OR PERMIT THE PROTESTER TO SUBMIT A CORRECTED LETTER.
BID GUARANTEE REQUIREMENTS ARE A MATERIAL PART OF AN IFB THAT THE CONTRACTING OFFICER CANNOT WAIVE. OPINE CONSTRUCTION, B-218627, JUNE 5, 1985, 85-1 CPD PARA. 645. THUS, A BID BOND WHICH NAMES A PRINCIPAL DIFFERENT FROM THE NOMINAL BIDDER IS DEFICIENT AND THE DEFECT MAY NOT BE WAIVED AS A MINOR INFORMALITY OR CORRECTED AFTER OPENING. A.D. ROE CO., INC., 54 COMP.GEN. 271 (1974), 74-2 CPD PARA. 194. ACCORDINGLY, FOR EXAMPLE, OUR OFFICE HAS FOUND NONRESPONSIVE A BID SUBMITTED IN THE NAME OF A CORPORATION BUT ACCOMPANIED BY A BID BOND NAMING A JOINT VENTURE AS PRINCIPAL. SEE FUTURE ELECTRIC CO., B-212938, FEB. 22, 1984, 84-1 CPD PARA. 216. SIMILARLY, ENSCO'S BID HERE MUST BE VIEWED AS NONRESPONSIVE.
ENSCO HAS REQUESTED THAT A CONFERENCE BE HELD ON THE PROTEST. NO USEFUL PURPOSE WOULD BE SERVED BY HOLDING SUCH A CONFERENCE, HOWEVER, WHERE, AS HERE, IT IS CLEAR FROM THE INITIAL PROTEST SUBMISSION THAT THE PROTEST IS WITHOUT MERIT. AMERICAN HOSPITAL SUPPLY, EQUIPPING AND CONSULTING, B-221357, JAN. 22, 1986, 86-1 CPD PARA. 70.
THE PROTEST IS DISMISSED.