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B-278700 1 (1998-03-04)

handle is hein.gao/gaocrptahpv0001 and id is 1 raw text is: oComptroller General of the United States Washington, D.C. 20548 Decision Matter of: Universal Coatings, Inc. File: B-278700 Date: March 4, 1998 Peter J. Ippolito, Esq., Iillyer & Irwin, for the protester. Joseph J. Cox, Esq., and Pat M. Falcigno, Esq., Department of the Army, for the agency. Charles W. Morrow, Esq. and James A. Spangenberg, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Bid bond which mistakenly included language that stated that payment on the bond was contingent upon the bidder entering into the identified contract, instead of the standard condition that payment is contingent on the bidder submitting the bid on the identified solicitation, is nevertheless clearly enforceable against the surety in the event the bidder declines to execute the contract and provide acceptable performance and payment bonds, in view of the fact that the bond otherwise made clear the surety's intent to be bound. DECISION Universal Coatings, Inc. protests the rejection of its bid under invitation for bids (IFB) No. DACA51-97-B-0043, issued by the United States Army Corps of Engineers, for reroofing certain buildings at the Defense Logistics Agency Depot, Warren, Ohio. Universal contends that the Corps improperly determined its bid to be nonresponsive due to a defective bid bond. We sustain the protest. Section 000700, paragraph 105, of the IFB required each bidder to submit a bid guarantee, in the form of a bid bond or other security, in the amount of 20 percent of the bid price or $3,000,000, whichever is less, and noted that the failure to furnish a bid guarantee on a standard form (SF) 24 in the proper form and amount by the time set for opening of bids may be cause for rejection of a bid. Paragraph 109 of the same section required the contractor to furnish a performance bond on SF 25 and a payment bond on SF 25A within 10 days of award. At bid opening, the Corps received 14 bids. Universal submitted the low bid of $818,500, which was accompanied by a bid bond issued by Amwest Surety Insurance Company on an SF 24-type form generated by the surety's bonding agent.

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