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B-205485 1 (1981-12-07)

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FILE: B-205485


DAT'-:


December 7, 1981


MATTER OF:


Valley Foods


D1GEST:
      Complaint alleging that 100 percent performance
      bond requirement in grantee's oblicitation un-
      duly restricts competition, received at GAO
      after bid opening, is untimely and will not be
      considered on merits, sinc alleged deficiency
      was apparent on face of solicitation.


      Valley Foods has filed a complaint with our Office
alleging that a 100 percent performance bond requirement
imposed by the Western Reserve Area Agency on Aging,
Cleveland, Ohio, a grantee of the Department of Health
and Human Services, unduly restricts competition. We
are dismissing the complaint as untimely.

     Valley Foods states that it made exhaustive efforts
to obtain the $1.7 million bond regqlred by the Agency
on Aging's solicitation before contacting it ontOcto-
ber 30, 1981, to clarify requirements, At that time, the
firm was told that the requirement would not be waived;
it therefore did not submit a bid at the November 4, 1981
bid opening.

     Valley Foods argues that the requirement is unusual,
excessive, end discrimtnatory, in that small businesses
are unable to meet itj this is shown by the fact that a
national company (presumably large) has been the only bid-
der on similar procurements during the past two years,
Valley Foods states. Since Valley Foods has been involved
with nutrition programs for the elderly for the past seven
years, the firm continues, it believes it is fully quali-
fied to perform the services in question.


                   While in the past, in the context of grant complaints,
              we have not imposed the sttict timeliness rules set forth
              in our Did Protest Procedures, 4 C.F.R. 5 21.2 (1981), we
              recehtly stated that in the future we would consider only
              complaints filed within n reasonable time. For com-
              plaints such as this, alleging deficiencies apparent on





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