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B-272430 1 (1996-10-08)

handle is hein.gao/gaocrptaejd0001 and id is 1 raw text is: 


Comptroller General
of the United States
Washington, D.C. 20548

Decision



Matter of: R.P. Richards, Inc.

File:        B-272430

Date:        October 8, 1996

C. Patrick Stoll, Esq., Herrig & Vogt, for the protester.
Kev Kutina, for Godot Enterprises, Inc., an intervenor.
Alan P. Shapiro, Esq., and Mary B. Workman, Department of the Army, for the
agency.
Jeanne W. Isrin, Esq., and John M. Melody, Esq., Office of the General Counsel,
GAO, participated in the preparation of the decision.
DIGEST

Facsimile copy of a bid bond is of questionable enforceability and renders bid
nonresponsive; since responsiveness cannot be established after bid opening, the
defect in the bond cannot be cured by the bidder's submission of the original bid
bond and other information subsequent to bid opening.
DECISION

R.P. Richards, Inc. protests the rejection of its bid as nonresponsive, and the award
of a contract to Godot Enterprises, Inc., under invitation for bids (IFB)
No. DACA05-96-B-0042, issued by the U.S. Army Corps of Engineers for the
construction of a dormitory at Luke Air Force Base, Arizona.

We deny the protest.

The IFB required the submission of a bid guarantee in the amount of 20 percent of
the bid price, not to exceed $3 million. Although Richards submitted the apparent
low bid, its bid was rejected as nonresponsive, and award was made to Godot--the
second low bidder--because Richards submitted a facsimile copy of its bid bond.
Richards argues that its bid should not have been rejected under the circumstances
here.

A bid bond is a form of bid guarantee designed to protect the government's interest
in the event of default; if a bidder fails to honor its bid in any respect, the bid bond
secures a surety's liability for all reprocurement costs. Morrison Constr. Servs.,
B-266233; B-266234, Jan. 26, 1996, 96-1 CPD 26. A requirement for a bid bond is a
material IFB term with which there must be compliance at the time of bid opening;
when a bidder submits a defective bid bond, the bid itself is defective and must be


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