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B-405552 1 (2011-11-14)

handle is hein.gao/gaobadoiv0001 and id is 1 raw text is: L G A 0 Comptroller General .. 7 Accountabiity * Integrity * Reliability of the United States United States Government Accountability Office Washington, DC 20548 Decision Matter of: Shaka, Inc. File: B-405552 Date: November 14, 2011 Dirk D. Haire, Esq., and Farah A. Shah, Esq., Smith, Currie & Hancock LLP, for the protester. William A. Lubick, Esq., Department of the Army, for the agency. Nora K. Adkins, Esq., and James A. Spangenberg, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Agency improperly determined bid bond to be unacceptable where the surety's liability under the bid bond was unaffected by a letter in the bid package from the bidder and its subcontractor disclosing that the bidder had obtained the bond through the subcontractor's relationship with the surety and advising the agency that it was not affiliated with the subcontractor. DECISION Shaka, Inc., of Jeannette, Pennsylvania, protests the rejection of its bid by the Department of the Army, Corps of Engineers, Pittsburgh District, under invitation for bids (IFB) No. W91 1WN-1 1-B-0003, for the replacement of bridge bearings and related services on the Emsworth Locks and Dam main channel service bridge on the Ohio River in Pennsylvania. We sustain the protest. BACKGROUND The agency issued the IFB on June 30, 2011. The IFB required bidders to submit a bid bond on a standard form (SF) 24 with their bid in the penal sum of 20 percent of the bid price or $3 million, whichever is less. In order to be considered an acceptable surety, a corporate surety had to appear on the list contained in Department of Treasury Circular 570, Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and Acceptable Reinsuring Companies.

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