No Award Where Bid Limited Surety's Liability

Friday, November 02, 2018 6:41 am
November 2018 - Volume 40 Number 11

Denied: Bid Guarantee

Matter of: G2G, LLC, 2018 U.S. Comp. Gen. B-416502 Lexis 308 (September 27, 2018)

A bidder’s use of an AIA bid bond form caused it to lose out on a government contract because the bid guarantee did not afford the government the proper surety liability protectio.

The Department of Veterans Affairs (VA) issued an invitation for bids (IFB) for a construction project at the Black Hills Healthcare Center in Fort Meade, South Dakota. The IFB required bidders to submit a bid guarantee in the amount of 20 percent of the bid price or $3 million, whichever was less. The IFB also included the Federal Acquisition Regulation (F.A.R.) provision 52.228-1 informing bidders that “failure to furnish a bid guarantee in the proper form and amount, by the time set for bid opening, could result in the rejection of the bid.”

When the VA opened the bids on May 8, 2018, G2G, LLC (G2G) was the apparent low-bidder. However, G2G submitted its bid guarantee on an American Institute of Architects (AIA) bid bond form and not o[..]