Sunrise International Group, Inc.

B-266357 Feb 12, 1996 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Where the actual bidder's identity was so clear that the firm would not be able to avoid its contract bid obligations if the bid were accepted. Sunrise asserts that the award to the Ramada was improper for a variety of reasons. The IFB was a 100-percent small business set-aside for a 1-year base period (October 1. Four bids were submitted by the August 4 bid opening date. The other two bidders were found ineligible due to their status as other than small business concerns. The contracting officer was informed that the Ramada had been purchased by Four Towers Limited Partnership on August 17. The contract was awarded to the Ramada on September 22. Sunrise first protests that the Ramada's bid should have been rejected on the basis that it was unclear what entity was bidding. View Decision Matter of: Sunrise International Group, Inc. File: B-266357 Date: February 12, 1996 Agency properly accepted bid submitted under the bidder's trade name, instead of the formal corporate name, where the actual bidder's identity was so clear that the firm would not be able to avoid its contract bid obligations if the bid were accepted. Agency properly awarded a contract to the low bidder's successor in interest where the original bidder sold the entire portion of its business embraced by the bid after bid opening and prior to award. Attorneys DECISION Sunrise International Group, Inc. protests the award of a contract to the Ramada Hotel, Warren, Michigan under invitation for bids (IFB) No. DAKF61-95-B-0042, issued by the Department of the Army. Sunrise asserts that the award to the Ramada was improper for a variety of reasons, including alleged ambiguities regarding the bidder's identity and an allegedly improper substitution of bidders. We deny the protest. The Army issued the IFB on July 5, 1995, seeking bids to furnish meals, lodging, and transportation for applicants to the Military Entrance Processing Station in Detroit, Michigan. The IFB was a 100-percent small business set-aside for a 1-year base period (October 1, 1995 through September 30, 1996), with a 1-year option period. Four bids were submitted by the August 4 bid opening date. The Ramada, the incumbent contractor, submitted a bid of $409,246. Sunrise submitted a bid of $580,799. The other two bidders were found ineligible due to their status as other than small business concerns. On September 21, the contracting officer contacted Ramada personnel to inform them that the contract would be awarded to the Ramada. At that time, the contracting officer was informed that the Ramada had been purchased by Four Towers Limited Partnership on August 17. The contracting officer requested that the new owners provide documentation substantiating the purchase. Four Towers provided documentation showing that it had purchased the Ramada in its entirety, and furnished new representations and certifications. The contract was awarded to the Ramada on September 22. Sunrise first protests that the Ramada's bid should have been rejected on the basis that it was unclear what entity was bidding. Specifically, Sunrise asserts that although the bid was submitted under the name of the Ramada Hotel, the City of Warren's licensing records show the Ramada's owner, in March 1995, to be "K. Patel," while the taxes for the property in 1995 were billed to "Days Hotel." Sunrise also complains that the Ramada's bid indicated that the company was bidding as a Michigan corporation, but the bid was not signed by a corporate officer and the license application indicated that the hotel was owned by an individual, not a corporation. In general, a contract cannot be awarded to an entity other than the one that submitted the bid. This rule applies in situations where it is unclear from the face of the bid which of two or more legal entities is the bidder, but it does not automatically prohibit an award where, as here, the bidder merely uses a trade name rather than a formal corporate name in the bid. In such instances, the bid may be accepted if there is evidence, existing and publicly available at the time of bid opening that establishes with reasonable certainty that the "actual" bidder would not be able to avoid the contract obligations if the bid were accepted. Sunrise Int'l Group, Inc., B-251956, Feb. 8, 1993, 93-1 CPD Para. 114. Here the bid was signed on behalf of the Ramada Hotel at 30000 Van Dyke Avenue, Warren, Michigan, by Rob Zarza, general manager. The agency has furnished documentation that restaurant and hotel licenses have been issued to the Ramada at the same address, based on an application filed by K. Patel for Ramada. Mr. Kiran Patel is president of KNP Corporation. Further, the agency has on file a standard form that authorizes Rob Zarza to sign on the Ramada's behalf, and also identifies the bidder as a Michigan corporation and Mr. Patel as its president.