Feds Reject Bid as Non-Responsive for Lack of Original Surety Signature on Bid Bond

The U.S. Army Corps of Engineers (USACE) rejected as non-responsive the bid of TJ's Marine Construction LLC of Belhaven, North Carolina because their bid bond for a breakwater replacement project contained only a photocopy of the surety's signature. 

TJ's Marine appealed the decision to the U.S. Government Accountability Office (GAO) which affirmed the non-responsive determination.

The January 7, 2010 GAO decision rejecting TJ's Marine's appeal stated that "The determinative question in judging the sufficiency of a bid guarantee such as a bid bond is whether it could be enforced if the bidder subsequently fails to execute required contract documents and to provide performance and payment bonds."

The GAO concluded that "The bid bond submitted with the protester's bid did not contain the surety's agent's original signature.  Without referring, after bid opening, to the document containing the surety agent's original signature, the USACE cannot ascertain whether or not there had been alterations to which the surety had not consented and could use as a basis to disclaim liability.  Accordingly, TJs' Marine's bid guarantee cannot be viewed as enforceable based on the information in the possession of the contracting officer at the time of bid opening."

To read a copy of the GAO denial of the bid protest, visit the following website:  http://www.gao.gov/decisions/bidpro/402227.htm