Bidder Submits Bid Bonds Which Expire Prior to 120-Day Bid Acceptance Period V. B-186749

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B-186749 1 (1976-10-19)

handle is hein.gao/gaobadefm0001 and id is 1 raw text is:

THE COMPTROLLER OENERAL
Cd CECISION .0OF THE UNITED STATEB
WASHINGTON, D,0,o20549

FILE: 1d6749 DATE; October 19, 1976

MATTER OF: Hunck Systems, Inc.

DIGEST:

Where bidder submits bid bonds which expire prior to
120-day bid acceptance period agency's rejection of
bid as nonresponsive pursuant to mandatory language
of ASPR g 2-40492(h) is proper, Rationale of 38
Comp. Gen, 532 is applicable to instanc case since
Government's interest would not be secured after
expiratio of bid bonds chus making it possible for
. bidder to decide after opening of bids whether to
have its bid rejected, to prejudice of other bidders
and contrary to competitive bidding principles.

By letter dated June 17, 1976, Munck Systems, Inc. (funck).
protested the proposed award of a contract for the furniahing
and installation of two 35-ton bridge cranes at Dover Air Force
Base, Delaware, and Travis .Air Force Base, California, to any
other bidder under invitation for bids (IFB) F07603-76-00016, issued
by the Air Force on April 5, 1976. The IFB, which had a 120-day
acceptance period, provided for a single award or, in the alternative,
separate awards for each air base and for the furnishing of a bid
bond in the amount of 20 perrent of the bid prico. At bid opening
onH ay 27, 1976, 10 bids were received, with Munck the apparent low
bidder on a sinble-award basis.

In response to the IFB's bid bond requirement, Kunck submitted
two irrevocable letters of credit with its bid, both in the amount
of $75,000. Letter number 0304, dated May 26, 1976, for Travis
Air Force Base, expired June 1, 1976. Letter nuiber 0305, dated
May 26, 1976, for Dover Air Force Base, expired June 30, 1976.
By letter dated June 4, 1976, the iesuing bank amended the expitation
date of letter of credit number 0304 to June 30, 1976.

By telephone conversations on June 15 and 17, 1976, Munck was
advised by the Air Force that its bid had been rejected as non-
responsive based on the fact that the letters of credit submitted
by Munck expired prior to the 120day acceptance period provided for
in the IFB. Subsequently, on June 21, 1976, the isouing bank amended
both letters of credit, reducing their amounts to $33,000 and extend-
ing their expiration dates to September 27, 1976.

S