Collins Companies

B-274765 Dec 27, 1996 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights DIGEST Bid which included only a facsimile copy of a required bid bond and power of attorney was properly rejected as nonresponsive. Collins argues that its facsimile bid bond was authorized and binding and that therefore rejection of its bid was improper. Which was issued on August 14. Whichever was less. It was informed that it would be acceptable to "fax everything over.". She informed the representative that this would be an acceptable method of transmission if the bid documents all bore original signatures of persons authorized to bind the firm and if they were delivered in a sealed envelope prior to the time set for bid opening. All documents relating to the bid bond were. A bid bond is a form of guarantee designed to protect the government's interest in the event of default. View Decision Matter of: Collins Companies File: B-274765 Date: December 27, 1996 DIGEST Attorneys DECISION Collins Companies protests the rejection of its low bid as nonresponsive under invitation for bids (IFB) No. DAKF57-96-B-0027, issued by the Department of the Army to replace siding on military housing units at Fort Lewis, Washington. The Army rejected Collins's bid as nonresponsive because it contained only facsimile bid bond documents; the Army viewed such documents as not establishing that the surety would be bound to honor the bond in the event of default. Collins argues that its facsimile bid bond was authorized and binding and that therefore rejection of its bid was improper. We deny the protest. The IFB, which was issued on August 14, 1996, with bid opening on September 13, required bidders to submit a bid bond in the amount of 20 percent of the bid price or $3,000,000, whichever was less. On the day of bid opening, a representative of Collins called the contracting specialist to ascertain whether its bid package had been received; upon being informed that it had not been received, the representative asked whether a telefacsimile bid would be acceptable. The protester asserts that in the ensuing conversation with the contracting specialist, it was informed that it would be acceptable to "fax everything over." According to the contract specialist's sworn account of the conversation, she informed the representative that a telefaxed bid would be unacceptable because the Army needed original signatures on all documents. Further, according to the specialist's statement, when Collins's representative asked if a copy could be telefaxed to an associate of the firm located in the area of the bid opening and then signed and hand delivered, she informed the representative that this would be an acceptable method of transmission if the bid documents all bore original signatures of persons authorized to bind the firm and if they were delivered in a sealed envelope prior to the time set for bid opening. The package received from Collins by the time set for bid opening contained a bid with the original signature of an authorized representative on the cover page. All documents relating to the bid bond were, however, telefaxed copies which bore no original signatures. As a result, the contracting officer rejected Collins's bid as nonresponsive and this protest followed. A bid bond is a form of 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. As such, a required bid bond is a material condition of an IFB with which there must be compliance at the time of bid opening; when a bidder submits a defective bid bond, the bid itself is rendered defective and must be rejected as nonresponsive. The determinative question as to the acceptability of a bid bond is whether the bid documents, including the power of attorney appointing an attorney-in-fact with authority to bind the surety, establish unequivocally at the time of bid opening that the bond is enforceable against the surety should the bidder fail to meet its obligations. If the agency cannot determine definitely from the documents submitted with the bid that the surety would be bound, the bid is nonresponsive and must be rejected. Morrison Constr. Servs., B-266233; B-266234, Jan. 26, 1996, 96-1 CPD Para. 26. Photocopies of bid guarantee documents generally do not satisfy the requirement for a bid guarantee since there is no way, other than by referring to the originals after bid opening, to be certain that there had not been alterations to which the surety had not consented, and that the government would therefore be secured. Id.