Use of Past Procurement as Basis for Price Comparison

A company protested against the partial cancellation of a solicitation, stating that the agency's determination of price unreasonableness was not based upon a current, relevant, reasonable comparison. The protest was denied because: the agency properly used the contract price for a 1972 procurement of identical items as a basis of comparison; the protester's cost estimates using a 12 percent inflation rate were unacceptable where a more precise analysis using the Department of Labor's wholesale price index was available; the protester's bid exceeded the Government's price estimate by approximately 9 percent; and the fact that it is unlikely that the Government will receive lower bids on recompetition has no bearing on the propriety of the cancellation.