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B-186047 1 (1976-06-25)

handle is hein.gao/gaobaddcp0001 and id is 1 raw text is:                    ~01,L ER 0,
                             THE  COMPTROLLER GENERAL
DECISION . 2J                OF   THE UNITED STATES
                             VWASH   IN GTO  N.  D.C.   20548




FILE:      B-186047                 DATE:   June 25, 1976

MATTER OF:         Victory Salvage Company
                   Walker - Moody Construction Company, Ltd.
                   Barstow Truck Parts and Equipment Company, Inc.
DIGEST:

       Bid submitted in name of apparent joint venture accom-
       panied by bid bond containing name of principal differing
       from one of the parties to the joint venture must be
       rejected as nonresponsive because of the discrepancy.
       Defect may not be cured by post-bid opening clarification.


       Victory Salvage Company (Victory) and Walker - Moody
 Construction Company, Ltd. (Walker), the alleged second high
 bidders on various items under Surplus Sale IFB No. 60-6031,
 have protested the prospective award of any contract to Barstow
 Truck Parts and Equipment Company, Inc. (Barstow), the apparent
 high bidder on those items, on the basis of a purported defi-
 ciency in Barstow's bid bond which arguably renders that bid
 nonresponsive.

       The subject IFB, issued by the Defense Supply Agency's
 (DSA) Defense Property Disposal Region, Pearl City, Hawaii,
 solicited bids for a variety of surplus vehicles and equipment
 and required, inter alia, the submission of a bid deposit in
 an amount not less than 20 percent of the total bid. The solic-
 itation further authorized the submission of an approved annual
 deposit bond in lieu of a bid deposit, provided that it was in
 an acceptable form.

       Upon the opening of bids, it was discovered that while
 the face of Barstow's bid set forth Barstow Truck Parts and
 Equipment and Klayer Associates as the nominal bidders, the
 bid was accompanied by an annual deposit bond naming Barstow
 as principal but was amended to cover bids also submitted by
 John Tallman of Honolulu, Hawaii. There was no information
 either in the bid itself or the accompanying bond indicating
 the relationship of Mr. Tallman to either Klayer Associates
 or Barstow.  Both Victory and Walker argue that since the bid
 of the apparent joint venture is supported by a bond naming
 only one of the joint venturers as principal, and that Klayer
 Associates is not supported by the bond, the bond does not con-
 stitute an acceptable form of bid deposit and the bid must there-
 fore be rejected as nonresponsive. DSA apparently concurs with
 Victory and Walker, recommending that Barstow's bid be rejected.


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