[Protest of Cancellation of Army IFB]

A firm protested the cancellation of an invitation for bids issued by the Army for the procurement of two packaged air conditioning units for military family housing facilities. During the course of evaluating the seven bids received, contracting officials determined that: (1) standard air conditioning units were equipped with aluminum rather than copper coils and fins; (2) units with copper coils and fins must be specially ordered and fabricated, so contractors might not be able to meet the required 90-day delivery period; and (3) units with copper coils and fins might cost much more than units with aluminum fins. Contracting officials were also informed that the useful service life of aluminum coils and fins was sufficient to satisfy Government needs. The contracting officer subsequently canceled the solicitation on the grounds of inadequate or ambiguous specifications. The protester argued that: (1) the specifications were not ambiguous; and (2) the cancellation was improper. GAO ruled that the Army had a cogent reason to cancel the solicitation since the specifications of the solicitation overstated the Army's minimum requirements. GAO also held that, when a contracting agency properly cancels a solicitation, a disappointed bidder alleging that the cancellation was improper is not entitled to bid preparation costs. Accordingly, the protest was denied.