BNUMBER: B-278415
DATE: December 17, 1997
TITLE: SWR, Inc., B-278415, December 17, 1997
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Matter of:SWR, Inc.
Date: B-278415
Date:December 17, 1997
Timothy S. Swindall for the protester.
B.J. Braun, Esq., Department of Transportation, U.S. Coast Guard, for
the agency.
Katherine I. Riback, Esq., and Paul Lieberman, Esq., Office of the
General Counsel, GAO, participated in the preparation of the decision.
DIGEST
Agency properly rejected unsigned proposal containing only a "typed
signature" where no other documentation submitted with the proposal
had an original signature and the offeror had not, on or prior to the
closing date for receipt of proposals, submitted a corporate
resolution authorizing typewritten signatures.
DECISION
SWR, Inc. protests the rejection of its proposal under request for
proposals (RFP) No. DTCG23-98-R-TPM01B, issued by the Department of
Transportation, U.S. Coast Guard for maintenance, repair and
rebuilding of mail processing equipment. The agency rejected SWR's
proposal because it was not signed. SWR contends that this omission
should have been waived as a minor informality.
We deny the protest.
The agency received two proposals, including SWR's, by the closing
date. Although SWR proposed the apparent low price, its proposal was
unsigned and contained only the typewritten name of SWR's Vice
President, below which was typewritten, "Vice President, SWR, Inc."
No documents submitted by SWR with its proposal contained an original
signature. After initially considering the possibility of waiving the
lack of signature as a minor informality, the agency eventually
determined to reject SWR's proposal as unacceptable and made award to
Pitney Bowes, the other offeror.
SWR maintains that its proposal contains a typewritten signature and
contends that its firm formally adopted, before the closing date, a
resolution permitting the execution of documents by typewritten
signature. SWR also points out that its proposed price was
significantly below the awardee's.
The agency points out that the solicitation provided that the agency
intended to make award without discussions, which it did, and that SWR
failed to submit to the agency, prior to the closing date, any
resolution that SWR had adopted regarding the authorization of
typewritten signatures.
An offer which is not signed, and lacks some other material indication
of the offeror's intention to be bound, generally must be rejected
since the government's acceptance of the offer would not result in a
binding contract without resort to confirming the offeror's intention
to be bound. Valencia Technical Servs., Inc.,
B-223288, July 7, 1986, 86-2 CPD para. 40 at 1. Where, as here, the
solicitation contemplates award on the basis of initial proposals,
after the established date for submitting proposals, it would be
unfair to other offerors to ask a vendor that had submitted an
unsigned proposal whether it intends to be bound by its offer. Id.
Although after rejection of its proposal, SWR submitted a copy of an
undated corporate resolution authorizing typewritten signatures,
"[e]ffected as of 8 January 1997," to be effective, such documentation
must be provided on or before the closing date.[1] Stafford Grading
and Paving Co., Inc., B-245907, Jan. 14, 1992, 92-1 CPD para. 66 at 2.
Accordingly, the agency's rejection of SWR's proposal was appropriate.
While SWR points out that there are monetary savings associated with
accepting its proposal, the maintenance of confidence in the integrity
of the government procurement system outweighs the possible monetary
advantage to be gained by considering the unsigned proposal. Valencia
Technical Servs., Inc., supra, at 1-2.[2]
The protest is denied.
Comptroller General
of the United States
1. Federal Acquisition Regulation (FAR) sec. 15.607 (June 1997) instructs
contracting officers to examine all proposals for minor informalities,
and then refers to FAR sec. 14.405 and 14.407. FAR sec. 14.405(c)(2),
entitled "Minor informalities or irregularities in bids," states that
the lack of a signature on a bid may be waived as a minor informality
if:
[t]he firm submitting a bid has formally adopted or
authorized, before the date set for opening of bids, the
execution of documents by typewritten, printed, or stamped
signature and submits evidence of such authorization and
the bid carries such a signature.
2. While the protester questions the reasonableness of the awardee's
proposed price, it is below the independent government cost estimate.