STP-42: We are facing some problems with our bank issuing the letter of credit in the form that is required and we may not be able to resolve the issue before the Part 2 Date. If we are not able to provide a letter of credit in an acceptable form by the Part 2 Date, is our Part 2 proposal automatically rejected?

No, your Part 2 Proposal will not be automatically rejected in the case you described.  If on the Part 2 Date the Pre-Bid Letter of Credit requirement is deficient, then you will receive a deficiency notice from the Procurement Administrator regarding a Pre-Bid Letter of Credit. At that point, the Bidder must respond by 6 PM on the second business day following the business day during which that first deficiency notice is sent, whichever comes later. If the Bidder responds to a deficiency notice within the time allowed but the response does not correct all deficiencies, the Bidder will, to the extent feasible, receive a further deficiency notice from the Procurement Administrator with additional time. Such additional time to respond to a further deficiency notice will be no longer than the time allowed under a first deficiency notice and, furthermore, in no event will the deadline to respond to a deficiency notice be after 12 PM (noon) on the Bid Date.