[Complaint of Rejection of All Bids]

The low bidder under a solicitation issued by the city of Juneau, Alaska, for a front end loader, complained of the rejection of all bids and the readvertisement of the requirement. This procurement was partially financed by a grant from the Federal Aviation Administration. The protester contended that Juneau rejected all bids and readvertised the requirement without any change in the specifications, because the complainant did not offer the brand of front end loader that the grantee wanted. GAO held that the cancellation of a solicitation by a grantee because erroneous oral advice was given to one of the bidders was a proper exercise of discretion where the grantee determined that the erroneous advice precluded effective competition. Accordingly, the complaint was denied.