Protest of Solicitation Cancellation

B-194077: Jun 7, 1979

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A company filed a complaint concerning the determination that bids received by the Ohio Department of Transportation for highway improvement work pursuant to a federal grant were too high. The protester alleged that the subsequent rejection of all bids was arbitrary, capricious, and violated regulations; that the state's estimate was unrealistically low; and that the state erred in its failure to apprise prospective bidders of a low bid limitation. Rejection by the grantee of excessive bids was a proper exercise of discretion, since the low bid would still have been considered excessive when compared with the complainant's revised estimate. The statute requiring that conditions precedent to the award be set forth in the advertised specifications does not preclude cancellation of a solicitation for valid reasons. The complaint was denied.