[Protest of Navy RFP Cancellation]

A firm protested the Navy's cancellation of a request for proposals (RFP) for which it was the only bidder, contending that the cancellation: (1) was arbitrary; (2) had the appearance of impropriety; and (3) involved technical transfusion. The protester requested that the Navy reinstate the solicitation or that it be awarded proposal preparation costs. GAO found that the Navy cancelled the solicitation due to changes in work procedures and methods that required significant revisions to the performance work statement; therefore, the Navy established a reasonable basis for cancellation. GAO has held that, where an agency reasonably believes that its needs are not accurately reflected by an RFP, cancellation is an appropriate action. In addition, GAO was unable to conclude that technical transfusion occurred. Further, GAO found that the protester failed to support an allegation of bad faith or bias on the part of procuring officials. Since GAO found that the cancellation was proper and that the Navy negotiated in good faith, GAO could find no basis for the protester's entitlement to recover its costs. Accordingly, the protest and the claim were denied.