Protest of IFB Cancellation and Subsequent Resolicitation

A small business protested both the cancellation of an invitation for bids (IFB), a total small business set-aside, and the subsequent resolicitation on an unrestricted basis under a second IFB. As the second low bidder, the protester challenged the small business status of the apparent low bidder, and subsequently the Small Business Administration found the low bidder to be other than a small business for purposes of the procurement. As a result, the contracting agency removed the low bidder from consideration and, after reviewing the remaining bids, canceled the first IFB on the basis that those bid prices were unreasonably high. In addition, the total small business set-aside was withdrawn for the issuance of the second IFB. Bids by other than small businesses on set-aside procurements may be considered in determining whether small business bids submitted on the procurement are reasonable. Although the protester maintained that the apparent low bidder was a "buy-in" and should have been disregarded, the contracting officer could have concluded that even an unusally low bid represented a price which could be expected on an open market. The response to the second IFB proved this determination to be correct as three bidders submitted prices in the range of the first low bid. The protest was denied.