Claim for Bid Preparation Costs Following IFB Cancellation

After deciding to reprogram its funds, the Bureau of Indian Affairs (BIA) canceled an Invitation for Bids (IFB) to extend watering lines to stock watering troughs in Whitecone, Arizona. The only bidder contended that BIA knew before bid opening that the IFB would have to be canceled, and, therefore, solicited the bids in bad faith. The project officer was located in BIA's Flagstaff, Arizona, office, but administration of the work was transferred to BIA's Phoenix Area office and the project officer in Flagstaff was notified of this fact on February 27. Although the project officer could have anticipated that the March 28 procurement would be canceled due to the lack of funds, it did not appear that he could have known that the IFB would have to be canceled before the bid opening date on March 2, 1978. GAO did not believe that the bids were solicited in bad faith; therefore, the protester's claim for bid preparation costs was denied.