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B-186899 1 (1976-07-12)

handle is hein.gao/gaobadcvl0001 and id is 1 raw text is: I - 1 - FE1LER C THE COMPTROLLER GENERAL DECISION ~OF THE UNITED STATES WASHINGTON, D.C. 20548 FILE: B-185899 DATE: July 12, 1976 MATTER OF: Free State Builders, Inc. DIGEST: 1. Government estimate of dollar volume for requirements contract--to be awarded under pricing structure which did not require bidders to submit formal bid prices-- may be used as mathematical base in determining possible alternative bid prices and, in turn, possible bid bond amounts of low bidder whose bid bond was submitted in amount equal to 20% of bid price. There is no indication that dollar estimate was faulty; moreover, Government estimate of work areas was used under prior pricing structure so as to permit computation of formal bid price. 2. Even though solicitation for requirements contract did not call for extended bid price, mathematical approach analyzing possible alternative bid prices for purpose of computing amount of surety's liability is not defective, since mathematical variables--unit prices, percentage discount factor, and estimated dollar volume-- needed to arrive at extended bid price are present in questioned bid. 3. Applying mathematical variables--unit prices, discount factor, and dollar estimate of work--contained in questioned bid lacking formal, extended bid price, amount of bid price, for purpose of calculating bid bond quoted as 20% of bid price, must be considered to be $127,002. Consequently, bid bond is determined to be $25,400.40. 4. GAO agrees that deficiency in amount of offered bid bond can be waived, since amount ($25,400.40) of bid guarantee submitted by questioned bidder, though less than amount ($40,000) required by the IFB, is greater than the difference between price ($127,002) in questioned bid and price ($130,980) in next higher acceptable bid.

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