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B-209446.2 1 (1983-04-29)

handle is hein.gao/gaobadlbc0001 and id is 1 raw text is: 


              0          THE COMPTROLLER GENERAL
DECISION                 O F THE UNITEO STATES
                         WASHINGTON. 0.C. 20548




FILE:      B-209446.2         DATE:    April 29, 1983

MATTER OF:      Hancon Associates - Request for
                  Reconsideration

DIGEST:


     Prior decision holding that bid bond naming
     two different sureties was materially
     defective is reversed since under facts and
     circumstances it now appears that contingency
     feared--the intended surety's ability to
     avoid any obligation under the bond--is too
     remote in view of other indicia on or accom-
     panying bond reasonably indicating that the
     surety would be bound.


     Hancon Associates requests that we reconsider our
decision in Atlas Contractors, Inc., B-209446, March 24,
1983, 83-1 CPD    , sustaining Atlas' protest. In that
decision, we hel--that Hancon's bid, for construction of a
commissary at Carswell Air Force Base, Fort Worth, Texas,
should be rejected as nonresponsive because the accompany-
ing bid bond was materially defective. Hancon contends
that the original protest by Atlas should have been dis-
missed as untimely and argues that our decision is legally
incorrect. For the reasons that follow, we reverse our
decision.

     In deciding the merits of the protest, we held that
the Hancon bid bond was fatally defective because it
identified two different sureties. The bond listed
Lumbermens Mutual Casualty Company in the place at the top
of the bond form reserved for the designation of sureties.
United States Fidelity and Guaranty Company (USF&G) was,
however, listed as the surety at the bottom of the bond.
Although Lumbermens' corporate seal was affixed to the bond
and a power of attorney was submitted with the bond which
designated Sheryl A. Klutts, among other persons, as
Lumbermens' agent to make, execute, seal, and deliver
* * * any and all bonds * * *, we found that the dis-
crepancy between the sureties listed at the top and the



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