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B-184331 1 (1975-12-18)

handle is hein.gao/gaobaddum0001 and id is 1 raw text is: 4' ~THE COMPTROLLER GENERAL DECISION . OF THE UNITED STATES WASHINGTON, D.C. 20548 (Q301 ?4 FILE: B-184331 DATE: December 18,1975 MATTER OF: Juanita H. Burns and George M. Sobley DIGEST: Documentary letter of credit furnished as bid guarantee does not constitute firm commitment as required by solicitation and ASPR 7-2003.25 (1974 ed.), thereby rendering bid nonresponsive, since letter of credit was not accompanied by bidder's signed withdrawal application which would have to be presented to bank in order for letter of credit to be honored. Juanita H. Burns and George M. Sobley (B & S), bidding as a joint venture,protest the rejection of their bid as nonresponsive under Invitation for Bids F22608-75-09014 issued for refuse collection and disposal services at Columbus Air Force Base, Mississippi. The protester's bid was rejected on the basis of two alleged deficiencies in the letter of credit furnished as the 20 percent bid guarantee required under solicitation paragraphs 21, 22 and 23. In particular, the contracting officer determined that the protester's letter of credit failed to identify both the bidder and the solicita- tion as required by paragraph 23 which provides that: If the Bid Guarantee is in the form of an irrevocable letter of credit, the letter of credit must (i) be issued by a bona fide financial institution, (ii) identify the bidder and the solicitation, and (iii) be a firm guarantee in an amount equal to 20 percent of the bid price. (Emphasis added) Accordingly, the contracting officer rejected the B & S bid pursuant to paragraph 21 which states in pertinent part that: -Gomp. G -........