Agency's Loss of Proposal after Receipt but Prior to Evaluation

The claimant requested proposal preparation costs resulting from the agency's loss of its proposal submitted in response to a request for proposals. In the absence of evidence indicating gross negligence or willful action, the agency's loss of the proposal after receipt but before evaluation did not entitle the offeror to proposal preparation expenses. Further, such expenses may be recovered only where it is shown that arbitrary Government action precluded the offeror from an award to which it was otherwise entitled.