B-244303, Jun 6, 1991, 91-1 CPD ***
Highlights
The agency rejected the bid as nonresponsive on the basis that the firm's bid guarantee was for 5 percent of the bid amount rather than the required 20 percent. Was effective for only 30 days after bid opening. It is well-established that a bid guarantee is a material part of a bid and therefore must be in accordance with the solicitation's terms to be acceptable. A bid guarantee that is not available to the government for at least the entire required period renders the guarantee defective and the bid therefore nonresponsive. As Bogue's bid guarantee was not effective for the required period. Its bid properly was rejected as nonresponsive. It is of no consequence that. A bidder would have the option of accepting or rejecting the award by either correcting or not correcting the deficiency.
B-244303, Jun 6, 1991, 91-1 CPD ***
PROCUREMENT - Sealed Bidding - Bids - Bid guarantees - Omission - Responsiveness PROCUREMENT - Sealed Bidding - Bids - Responsiveness - Acceptance time periods - Deviation DIGEST: Submission of bid guarantee effective for 30 days after bid opening rather than 60 days as required by the solicitation rendered the guarantee defective, and agency therefore properly rejected the bid as nonresponsive.
Attorneys
Bogue Construction, Inc.:
Bogue Construction Inc. protests the rejection of its bid under invitation for bids (IFB) No. R2-91-23, issued by the Forest Service, Department of Agriculture, for construction of the Buzzard Divide Road. The agency rejected the bid as nonresponsive on the basis that the firm's bid guarantee was for 5 percent of the bid amount rather than the required 20 percent, and was effective for only 30 days after bid opening, rather than the required 60 days.
It is well-established that a bid guarantee is a material part of a bid and therefore must be in accordance with the solicitation's terms to be acceptable. See McLemore Pump, Inc., B-230031, Jan. 27, 1988, 88-1 CPD Para. 83. Consistent with this general principle, a bid guarantee that is not available to the government for at least the entire required period renders the guarantee defective and the bid therefore nonresponsive. See Kentucky Bridge and Dam, Inc., B-236218, Nov. 2, 1989, 89-2 CPD Para. 415. Consequently, as Bogue's bid guarantee was not effective for the required period, its bid properly was rejected as nonresponsive. (We thus need not discuss the remaining deficiency).
It is of no consequence that, after bid opening, Bogue submitted a bid guarantee correcting the deficiencies. A bid guarantee deficiency may not be corrected after bid opening; otherwise, a bidder would have the option of accepting or rejecting the award by either correcting or not correcting the deficiency, which is inconsistent with the sealed bidding system. Drill Constr. Co., Inc., B-239783, June 7, 1990, 90-1 CPD Para. 538.
Bogue notes that acceptance of its bid notwithstanding the defective bid guarantee would result in a cost saving to the government. However, the public interest in maintaining the integrity of the competitive bidding system outweighs any advantages to the government from waiving the procurement regulations. Hannan Assocs., Inc., B-226180, Feb. 20, 1987, 87-1 CPD Para. 197.
The protest is dismissed.