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B-267513 1 (1995-11-16)

handle is hein.gao/gaocrptacft0001 and id is 1 raw text is: Comptroller General of the United States Washington, D.C. 20548 Decision Matter of: Harvest Construction Company File: B-267513 Date: November 16, 1995 William R. Potter, Esq., and Susan W. Gowan, Esq., Potter & Taylor, for the protester. Allen W. Smith, and Charles Hill, Jr., Department of Agriculture, for the agency. Behn Miller, Esq., and Christine S. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protester's bid was properly rejected as nonresponsive where it contained a commercial bid bond form which extinguished the surety's liability once the bidder paid costs associated with its default equal to the penal sum of the bond, contrary to Federal Acquisition Regulation § 52.228-1(e) and standard form 24, which require the surety to be liable for all costs associated with contractor default up to the penal sum of the bond. DECISION Harvest Construction Company protests the rejection of its low bid as nonresponsive under invitation for bids (IFB) No. R3-12-95-22, issued by the Department of Agriculture for the excavation and construction of various low water crossing sites in Tonto National Forest, Arizona. Harvest contends that the agency improperly determined its submitted bid bond was deficient. We deny the protest. The IFB was issued on May 17, 1995, and required that all bidders submit a bid guarantee in the amount of 20 percent of the bid price, or $3 million, whichever was the lesser amount. The IFB incorporated and set forth Federal Acquisition Regulation (FAR) § 52.228-1, which provides that a bidder's failure to furnish the required bid guarantee in the proper form and amount may be cause for rejection of the bid and which further mandates at subparagraph 1(e) that: In the event the contract is terminated for default, the bidder is liable for any cost of acquiring the work that exceeds the amount of its bid, and the bid guarantee is available to offset the difference. (Emphasis added.) 2421116

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