B-143073, JUN. 24, 1960
Highlights
J. WALKER COMPANY: REFERENCE IS MADE TO YOUR LETTER OF JUNE 13. THERE IS ENCLOSED HEREWITH FOR YOUR INFORMATION A COPY OF OUR DECISION OF TODAY TO THE SECRETARY OF THE AIR FORCE IN REGARD TO THE MATTER. YOU SUBMITTED A BID TO THE SAME PROCUREMENT OFFICE AS IS INVOLVED HERE AND THAT. WHILE YOUR BID WAS LOW YOU DID NOT CONFORM TO THE INSTRUCTIONS TO BIDDERS AND YOUR BID WAS REJECTED. 000 WHICH WAS THE LOWEST BID RECEIVED. WAS REJECTED PURSUANT TO THE DECISIONS OF OUR OFFICE. GENERAL DISCUSSION OF THIS MATTER IS CONTAINED IN 38 COMP. WHEREIN IT WAS CONCLUDED THAT THE BID BOND REQUIREMENT IS A MATERIAL PART OF THE INVITATION WHICH CANNOT BE WAIVED AND THAT THE FAILURE TO SUBMIT A BID BOND RENDERED THE BID NONRESPONSIVE.
B-143073, JUN. 24, 1960
TO P. J. WALKER COMPANY:
REFERENCE IS MADE TO YOUR LETTER OF JUNE 13, 1960, PROTESTING THE POSSIBLE REJECTION OF YOUR BID SUBMITTED IN RESPONSE TO INVITATION FOR BIDS NO. IFB 04-611-60-199 ISSUED BY THE DIRECTOR OF PROCUREMENT, EDWARDS AIR FORCE BASE, CALIFORNIA.
THERE IS ENCLOSED HEREWITH FOR YOUR INFORMATION A COPY OF OUR DECISION OF TODAY TO THE SECRETARY OF THE AIR FORCE IN REGARD TO THE MATTER. IN YOUR LETTER YOU STATE THAT ON DECEMBER 28, 1959, YOU SUBMITTED A BID TO THE SAME PROCUREMENT OFFICE AS IS INVOLVED HERE AND THAT, WHILE YOUR BID WAS LOW YOU DID NOT CONFORM TO THE INSTRUCTIONS TO BIDDERS AND YOUR BID WAS REJECTED. THE ADMINISTRATIVE OFFICE HAS REPORTED THAT IN THAT CASE THE EDWARDS AIR FORCE BASE ISSUED INVITATION FOR BIDS NO. IFB 04-611-60-91 ON DECEMBER 18, 1959, FOR CERTAIN CONSTRUCTION WORK. THE INVITATION REQUIRED BIDDERS TO SUBMIT WITH THE BID A BID BOND IN THE AMOUNT OF 20 PERCENT OF THE BID. YOU SUBMITTED A BID IN THE AMOUNT OF $18,000 WHICH WAS THE LOWEST BID RECEIVED, BUT FAILED TO SUBMIT A BID BOND. YOUR BID, THEREFORE, WAS REJECTED PURSUANT TO THE DECISIONS OF OUR OFFICE. GENERAL DISCUSSION OF THIS MATTER IS CONTAINED IN 38 COMP. GEN. 532, WHEREIN IT WAS CONCLUDED THAT THE BID BOND REQUIREMENT IS A MATERIAL PART OF THE INVITATION WHICH CANNOT BE WAIVED AND THAT THE FAILURE TO SUBMIT A BID BOND RENDERED THE BID NONRESPONSIVE. IT WAS POINTED OUT IN THAT DECISION THAT A BIDDER WHO FAILS TO SUBMIT A BID BOND HAS THE ADVANTAGE OVER COMPLYING BIDDERS IN THAT HE CAN DECIDE, AFTER BID OPENING, TO BECOME ELIGIBLE FOR AWARD BY THEN OBTAINING A BOND, OR REFUSE TO FURNISH A BOND AND HAVE HIS BID REJECTED. YOU WILL NOTE FROM THE ENCLOSED DECISION THAT THE PROVISION CONCERNING THE FURNISHING OF AN AFFIDAVIT REGARDING AFFILIATES WAS NOT INTENDED UNDER THE ARMED SERVICES PROCUREMENT REGULATION TO BE USED IN A CASE OF THIS TYPE, AND THAT THE ADMINISTRATIVE OFFICE PROPOSES TO ISSUE APPROPRIATE INSTRUCTIONS TO PURCHASING ACTIVITIES TO LIMIT THE USE OF THE REQUIREMENT FOR AN AFFIDAVIT AS TO AFFILIATES TO INSTANCES WHERE COLLUSIVE BIDDING MIGHT BE CONSIDERED A REAL POSSIBILITY OR WHERE THERE IS A SMALL BUSINESS SET-ASIDE.