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B-187698 1 (1976-12-08)

handle is hein.gao/gaobadehk0001 and id is 1 raw text is: THE COMPTROLLER UENERAL 000I81ON * .OF THI UNITED STATUE IUCUN WAUHINGTON, 00. 9 0540 FILE: 3-157698 DATE: December 8, 1976 MATTER OF: Zdward X. Crough, Inc. DIGEST: Bid bond is not defective even though bidder.failed to supply certification a to corporate principal's authorix- Ing of corporate presldent to act on its behalf where face of bid bond dlearly indicates that surety is obli- gated. Eduird K. Crough, Inc. (Crough) bas requested review of the award'of;a'contract to the apparent low bidder, J. A. Scheibel, Inc., (Scheibel),* by Howard Univeritty. The7iroposed contract, to be financed entirely by a grant from the National Cancer Insti- tute,-National Iniitutem of Health, Deairtment of Health, Education, and Welfare '(NCt;, is for constructing a Cancer Basearch Facility addition to the Howard University Hospital. Crough, the third low bidder, has also questioned the propriaty of any award to Maritime Construction Company, Inc., the second- low bidder, but in view of our conclusion concerning Scheibel's bid, wereed not consitzr it in this decision. Crough'm position 3s that Scheibel's bid is nonresponsive fortfailing to include Lh. required Certificate am to Corporate Principal. That docume)'t im the corporate secratary's ceartifi- cation tvtt the individual, (in this case the corpi ate president) signing the bid bond is authorized to bind the corp rate princi- pal to pay a specified amount in kihe event that the principal faile lo provide the reqtuired performance and payment bonds. Crough contends that without much certification Howard cannot deturmine whether Schaibel is bound. Accordingly, Crough argues, Schelbel's being permitted to supply the ceitificate affier bid opening givsa Scheibel the opportunity to correct or not to correct a masterial deficiency in 2!ts bid. This opportunity, according to Crough, puts flheibel in the position of being able to accept or refuse tte rwnvrd-an opportunity not afforded ether bidders, thu- compromitsi the integrity of the competitive system. * 1'

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