Daley Corporation-California Commercial Asphalt Corporation,

B-274203.2 Dec 09, 1996 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Agency improperly rejected bid on the basis of minor irregularities in power of attorney to execute bid bond where the attached power of attorney certificate was properly executed by the surety's corporate officers. The certificate was embossed with the surety's original seal. The protester contends that the agency unreasonably concluded that Daley-CCAC's bid bond was defective. Was issued on July 1. The low bid was rejected as nonresponsive because it failed to offer the required 120-day bid acceptance period. Accompanying the bid bond was a power of attorney. The power of attorney is certified by the facsimile signature of W.A. On the back of the power of attorney is an undated notary certification that states in part: "I. View Decision Matter of: Daley Corporation-California Commercial Asphalt Corporation, J.V. File: B-274203.2 Date: December 9, 1996 Agency improperly rejected bid on the basis of minor irregularities in power of attorney to execute bid bond where the attached power of attorney certificate was properly executed by the surety's corporate officers, and the certificate was embossed with the surety's original seal. Attorneys DECISION Daley Corporation-California Commercial Asphalt Corporation, J.V. (Daley-CCAC) protests the rejection of its bid as nonresponsive for lack of a valid bid bond under invitation for bids (IFB) No. N68711-94-B-1587, issued by the Department of the Navy for certain construction at the Marine Corps Air Station at Miramar, California. The protester contends that the agency unreasonably concluded that Daley-CCAC's bid bond was defective. We sustain the protest. The IFB, which required submission of a bid guarantee, was issued on July 1, 1996. At bid opening on August 1, the low bid was rejected as nonresponsive because it failed to offer the required 120-day bid acceptance period. Daley-CCAC, the second low bidder, included in its bid package a bid guarantee in the form of a bid bond, dated July 30, 1996, from American Motorists Insurance Company (AMIC) signed by K. R. Viodes as attorney-in-fact. Accompanying the bid bond was a power of attorney, dated July 30, 1996, appointing K. R. Viodes as AMIC's attorney-in-fact. The power of attorney is certified by the facsimile signature of W.A. Grauzas, Secretary, and executed by the facsimile signature of J. S. Kemper III, Executive Vice President. On the back of the power of attorney is an undated notary certification that states in part: "I, Irene Klewer, a Notary Public, do hereby certify that J. S. Kemper, III and F. C. McCullough personally known to me to be the same persons whose names are respectively as Exec. Vice President and Secretary of the American Motorists Insurance Company, a Corporation of the State of Illinois, subscribed to the foregoing instrument." Beneath the notary certification was a certification dated July 30, 1996, and executed by N. J. Zarada as secretary which states in part: "I, N.J. Zarada, Secretary of the American Motorists Insurance Company, do hereby certify that the attached Power of Attorney dated July 26, 1993 on behalf of the person(s) as listed on the reverse side is a true and correct copy and that the same has been in full force and effect since the date thereof and is in full force and effect on the date of this certificate; and I do further certify that the said J.S. Kemper, III and W.A. Grauzas who executed the Power of Attorney as Exec. Vice President and Secretary respectively were on the date of the execution of the attached Power of Attorney the duly elected Exec. Vice President and Secretary of the American Motorists Insurance Company." The Navy, after examining the power of attorney, concluded that it contained numerous irregularities that raised uncertainties regarding the validity of the power of attorney, and therefore the validity of the bond itself. Specifically, the Navy considered the power of attorney appointment attested to by a facsimile signature of W. A. Grauzas as Corporate Secretary and dated July 30, 1996, to be inconsistent with the certification on the same date by N. J. Zarada, also as secretary. The Navy also noted that the undated notary certification, which referred to F.C. McCullough as secretary, and the July 30, 1996 certification signed by N. J. Zarada, as secretary, that the power of attorney was in full force which referred to a power of attorney dated July 26, 1993 added further uncertainty. On the basis of these perceived discrepancies, the Navy rejected the protester's bid as nonresponsive. A bid guarantee is a form of security that assures the government that a bidder will not withdraw its bid within the period specified for acceptance and, if required, will execute a written contract and furnish required performance and payment bonds. Federal Acquisition Regulation (FAR) Sec. 28.001.