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[Protest of Navy Rejection of Bid for Painting of Family Housing Units]

B-224257: Jan 8, 1987

A firm protested the Navy's rejection of its low bid for painting family housing units as nonresponsive due to a defective bid bond. The Navy argued that the protest was untimely. The protester contended that: (1) the fact that the bank addressed the letter of credit to it was a minor informality; and (2) the bank clearly issued the letter, a photocopy, as a bid guarantee. GAO held that: (1) the p...

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B-224257, JAN 8, 1987, 87-1 CPD 34

B-224257: Jan 8, 1987

WHERE AN IRREVOCABLE LETTER OF CREDIT SUBMITTED AS A BID GUARANTEE IS A PHOTOCOPY. IS ADDRESSED TO THE BIDDER RATHER THAN THE AGENCY. THE LETTER IS OF QUESTIONABLE ENFORCEABILITY. THE BID THEREFORE IS PROPERLY REJECTED AS NONRESPONSIVE. IT FURTHER STATED THAT IT WOULD BE IN FORCE FOR 6 MONTHS OR "UNTIL A PERFORMANCE AND PAYMENT BOND IS ISSUED AND THE BANK RECEIVES A RELEASE FROM THE U.S. IT WAS. C...

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