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B-201697 1 (1983-03-18)

handle is hein.gao/gaobadkyg0001 and id is 1 raw text is: 7 THE COMPTROLLER GENERAL DECISION . OF THE UNITED STATES WASHINGTON, 0. C. 20548 FILE: DATE' B-201697 March 18, 1983 MATTER OF: Guarantee Electrical Company DIGEST: I. Generally, in both direct Federal procure- ments and grantee procurements a bid guarantee requirement is material as it protects the contracting agency's financial interest in having the low bidder sign the contractual documents and a bid accompanied by a bond for less than the required amount must be rejected as nonresponsive. Where, as here, however, the award is to be made on the basis of minority business enterprise (MBE) participation rather than on low price an inadequate bid bond may be waived by the grantee as it has no financial interest which can be protected by the bond. 2. Since bidders under grantee procurement were required to state whether they met MBE goal in order to qualify for MBE award pref- erence, a bid that failed as initially submitted to offer any minority business participation, may not be modified by the bidder's subsequent submission of a proposed minority subcontractor. 3. GAO does not conduct investigations of grantee procurements under grant review procedures. Complainant is required to furnish full information regarding pro- curement deficiencies alleged, and not simply express its suspicion that grantee may have violated applicable procurement procedures. Guarantee Electrical Company complains of the award of contracts for electrical renovation work at the Beecher Terrace housing project to Cottoner Elec- trical Construction, Inc. and a joint venture composed of Standard Electric Co., Inc. and Craven Electric Co., efc7LA /' I@~

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