[Protest of DLA Rejection of All-or-None Bid]

A firm protested the rejection of its bid on a Defense Logistics Agency (DLA) request for proposals. Shortly after bid opening, the protester informed DLA that it had made an error in its bid and requested permission to correct it. DLA determined that the protester could withdraw its bid on the item in question but could not correct it because it would then displace the high bidder. DLA also denied the protester's request that the bid be considered for award as submitted. The protester contended that its bid as originally submitted should have been accepted because there was no prejudice to other bidders and that its bid on the item in question was high, whether considered as the mistaken or as the intended bid. Therefore, the protester stated that it would have received the award for the item if it had not advised DLA of its error. DLA contended that the bid could not have been considered as originally submitted because it would have resulted in the displacement of an otherwise high bidder. Where a bidder is in the position, after the other bid prices have been revealed, of withdrawing or modifying its bid, consideration of that bid would be detrimental to the competitive bid process. GAO agreed that consideration of the erroneous bid would improperly displace the high bidder. In addition, GAO agreed with the DLA position that the protester could not modify its all-or-none bid to obtain the award by omitting the item in question. Accordingly, the protest was denied.