[Decision Concerning Claims for Bid and Protest Preparation Costs]

Two firms claimed reimbursement for their bid and protest preparation costs pursuant to their protests under a cancelled Navy solicitation for high-pressure air compressors. The first claimant had protested a proposed contract award to the second claimant. The Navy then cancelled the solicitation after it determined that the solicitation specifications were ambiguous. Subsequently, the Navy determined not to resolicit because it no longer had funding to meet the requirement. Both claimants contended that the Navy improperly caused them to incur additional costs pursuing their protests, since it delayed in notifying them of the change in its requirements. In addition, the first claimant contended that the Navy's cancellation of the solicitation was an acknowledgement that the awardee's bid was nonresponsive. GAO held that: (1) the claimants were not entitled to reimbursement for their bid and protest preparation costs under the solicitation cancellation protests because the change in the Navy's requirements rendered their protests academic; (2) there was no merit to the first claimant's contention that the cancellation was an acknowledgement of its contract award protest's merit; and (3) contrary to the second claimant's assertions, there was no indication that the Navy intended to reinstate the solicitation. Accordingly, the claims were denied.