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B-278766 1 (1998-02-23)

handle is hein.gao/gaocrptahqc0001 and id is 1 raw text is: Comptroller General of the United States Washington, D.C. 20548 Decision Matter of: E.L. Enterprises, Inc. File: B-278766; B-278788; B-278789; B-278790 Date: February 23, 1998 Reggy Gray for the protester. Terrence J. Tychan and Michael Colvin, Department of Health and Human Services, 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 Requirement for performance and payment bonds in solicitations for security guard services is reasonably supported where the agency had experience with contractors not paying employees that resulted in disruption of service and the bonds were reasonably deemed necessary to ensure uninterrupted service. DECISION E.L. Enterprises, Inc. protests the requirement for performance and payment bonds in request for proposals (RFP) Nos. $98-0003/CH, $98-0006/CH, $98-0011/CH, S98- 0012/CH, total set asides for Indian-owned firms, issued by the Department of Health and Human Services, Indian Health Service (IHS), for security guard services. We deny the protests. The RFPs were issued by the IHS for security guard services at several medical facilities for a base period with 2 option years. RFP No. $98-0003/CH was for guard services at the Gallup Indian Medical Center, Gallup, New Mexico. RFP No. S98- 0006/CH was for guard services at the Chinle Comprehensive Healthcare Facility, Chinle, Arizona and the Tsaile Health Center, Tsaile, Arizona. RFP No. $98-0011/CH was for guard services at the Winslow Indian Health Center, Winslow, Arizona. RFP No. $98-0012/CH was for guard services at the Tuba City Indian Medical Center, Tuba City, Arizona. Each RFP, as amended, required a performance bond in an amount equal to 20 percent of the contract price and a payment bond in an amount equal to 12 percent of the contract price. E.L. Enterprises protests that the requirement for bonds is unnecessary because there is assertedly no risk to the government in a contract for security guard services, since payments are made to the contractor after performing the service.

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