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B-231086 1 (1988-07-05)

handle is hein.gao/gaobadndl0001 and id is 1 raw text is: The Comptroller General of the United States Wahington, D.C. 20548 Decision Matter of- The National Hispanic Association of Construction File: Enterprises B-231086 Date: July 5, 1988 DIGEST Federal Acquisition Regulation (FAR), deviation which precludes the use of individual sureties as security for bid, payment and performance bonds unless such individual sureties deposit adequate tangible assets with the govern- ment is not objectionable where the deviation was properly authorized under the FAR and is a temporary element of a pilot contracting program aimed at improving the efficiency of the agency's procurement efforts. DECISION The National Hispanic Association of Construction Enter- prises and several Members of Congress on its behalf, request our opinion as to the legality of the deviation by the Department of the Navy from Federal Acquisition Regula- tion (FAR), § 28.201 (FAC 84-8) and FAR § 28.202-2 (1984 ed.). Specifically, the Association questions the Navy's prohibition of the use of individual sureties for bonding requirements imposed pursuant to the Miller Act, 40 U.S.C. § 270a et seq. (1982). The Association argues that this deviation from the FAR (which ordinarily permits the use of individual sureties), is impermissible because it is prohibited by the Surety Act, 31 U.S.C. § 9301 et seq. (1982). For the reasons stated below, we find no reason to question the Navy's deviation. As noted above, the Miller Act requires that performance and payment bonds be furnished by firms performing under con- struction contracts where the value of the contract exceeds $25,000. 40 U.S.C. § 270a. FAR § 28.102 (FAC 84-26), implements the terms of the Miller Act and FAR subpart 28.2 (FAC 84-8), prescribes the government's requirements for

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