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[Protest of Corps of Engineers Rejection of Bid as Nonresponsive]

B-225750: Apr 1, 1987

A firm protested the Army's rejection of its low bid as nonresponsive under a solicitation for the fabrication of river lock gates, contending that: (1) the Army improperly rejected its letter of credit; (2) the solicitation did not require the Army to reject bids lacking a proper bid guarantee; and (3) the Army should have allowed it to correct its letter of credit after bid opening. GAO held tha...

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B-225750, APR 1, 1987

B-225750: Apr 1, 1987

AGENCY PROPERLY REJECTS A BID AS NONRESPONSIVE WHERE THE IRREVOCABLE LETTER OF CREDIT SUBMITTED AS A BID GUARANTEE IS CONDITIONED ON THE CONTRACT BEING ASSIGNED TO THE ISSUING BANK. SINCE A BID GUARANTEE IS A MATERIAL REQUIREMENT THAT MUST BE MET AT THE TIME OF BID OPENING. A BID THAT IS NONRESPONSIVE DUE TO THE LACK OF AN ADEQUATE GUARANTEE GENERALLY CANNOT BE MADE RESPONSIVE BY FURNISHING ONE IN...

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