INFORMATION ONLY.doc

INFORMATION ONLY:

The SDVOSBC in a teaming agreement may not use the bid guarantee in the name of its teaming partner. An agency may properly reject as non-responsive the bid of a joint venture which has submitted its bid guarantee solely in the name of the bidding entity's teaming partner. The sufficiency of a bid bond relates to whether the government will receive full and complete protection in the event that the bidder fails to execute the required contract documents and deliver the required performance and payment bonds. The bid of a joint venture, which submitted a bid bond in the name of only one of the corporations forming the joint venture, renders the bid nonresponsive since the terms of the bid bond must clearly establish the liability of the surety at the time of bid opening. Such unclear liability makes the bond defective since the principal listed on the bid bond must name the same legal entity as the nominal bidder. If the bid bond names a principal different from the nominal bidder, this renders the bid deficient and the agency may not correct this deficiency after bid opening as a minor informality. As such, the team must submit a bid guarantee in the name of the joint venture for the bid to qualify as responsive.