Effect of Net Worth of Individual Sureties on Bidder Responsiveness

B-177294(2), JAN 31, 1973

BID PROTEST - BID BONDS - NET WORTH OF SURETY - SURETY RESPONSIBILITY CONCERNING THE PROTEST OF AMCOR, INC., AGAINST THE AWARD OF A CONTRACT TO ANOTHER FIRM UNDER AN IFB ISSUED BY SHEPPARD AFB, TEX. ALTHOUGH THIS PROTEST WAS DENIED, IT WAS NOTED THAT A BID WAS REJECTED AS NONRESPONSIVE BECAUSE ONE OF THE INDIVIDUAL SURETIES LISTED ON THE BID BOND FAILED TO SHOW A NET WORTH EQUAL TO THE TOTAL PENAL AMOUNT OF THE BOND. SINCE THIS IS A MATTER CONCERNING THE RESPONSIBILITY OF THE SURETY AND DOES NOT RELATE TO THE RESPONSIVENESS OF THE BID, SUCH NET WORTH MAY PROPERLY BE DETERMINED AFTER BID OPENING. B-176392, OCTOBER 10, 1972, 52 COMP. GEN. .

TO MR. SECRETARY:

WE REFER TO REPORT LGPM DATED NOVEMBER 7, 1972, RELATIVE TO THE PROTEST OF AMCOR, INC., AGAINST THE AWARD OF A CONTRACT TO ANOTHER FIRM UNDER INVITATION FOR BIDS F41612-72-B-0402, ISSUED BY SHEPPARD AIR FORCE BASE, TEXAS.

ENCLOSED HEREWITH IS A COPY OF OUR DECISION OF TODAY DENYING THE PROTEST. HOWEVER, DURING THE COURSE OF OUR REVIEW, WE NOTICED THAT A BID WAS REJECTED AS NONRESPONSIVE BECAUSE ONE OF THE INDIVIDUAL SURETIES LISTED ON THE BID BOND FAILED TO SHOW A NET WORTH EQUAL TO THE TOTAL PENAL AMOUNT OF THE BOND. IN THIS REGARD, WE ARE ENCLOSING FOR YOUR INFORMATION A COPY OF OUR DECISION 52 COMP. GEN. (B-176392, OCTOBER 10, 1972), WHEREIN WE CONCLUDED THAT THE MATTER OF THE NET WORTH OF AN INDIVIDUAL SURETY ON A BID BOND REFLECTS UPON THE RESPONSIBILITY OF THE SURETY AND DOES NOT RELATE TO THE RESPONSIVENESS OF THE BID, AND SUCH NET WORTH MAY PROPERLY BE DETERMINED AFTER BID OPENING, SUBJECT TO THE TIME RESTRAINTS OF THE PROCUREMENT.