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B-192064 1 (1978-09-11)

handle is hein.gao/gaobadgke0001 and id is 1 raw text is: / n~ ~THlE COMPTEOLLENGNRL/I~- CECISILJ 1. j?l~ .OP THE UNITED SATEU WASMNGON. 0.C. a0540 FILE: 8-192064 DATE: September 11, 1978 MATTER 09-: Tower Elevator Corporation DIGEST: Bid bond naming principal different from company submitting bid is de- ficient notwithstanding that bidder is wholly-owned subsidiary of company named in bond. Surety's obligation to principal on bond may not be imputed to bidder even where matter of affiliation was established by bid forms submitted with bid. Tower Elevator Corporation (Tower), protests the rejection of its low bid under solicitation No. 2PBO-VN-19147, issued by the General Services Administration (GSA) for elevator maintenance and repair services. Tower's bid was rejected by the contracting officer because sower submitted a bid bond which named Atlantic Elevator Company, Inc. (Atlantic), rather than Tower, as the principal. Tower stc7tes that it is a wholly-owned sub- sidiaty of Aclantic, and that such relationship was clearly established ty its original bid documents, wherein Tower designated Atlantic as its parent company. Accordingly, Tower contends that this fact should have-operated to impute the surety's obli- gation to Tower. We have consistently held that where a solic- itation contains a bid bond requirement, as in the instant case, the requirement constitutes a ma- terial part of the solicitation. See A. D. Roe Company, Inc., 54 Comp. Gen. 2711772 (1974), 74-2 CPD 194, and citations therein. Generally, when a bid bond names a principal different from

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