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[Protest of Cancellation of IFB]

B-209765 Published: Apr 15, 1983. Publicly Released: Apr 15, 1983.
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Highlights

A firm protested the cancellation of an invitation for bids (IFB) issued by the Army for the repair and maintenance of family quarters. Four firms responded to the amended IFB by bid opening date. Subsequently, the third-low bidder protested to the Army that the estimated quantity for one solicitation item was obviously in error and that the lowest bidder took advantage of that error. The Army reviewed the matter and, because of the magnitude of the error, canceled and reissued the IFB. The protester was notified of the cancellation and resolicitation actions. GAO held that an agency's cancellation of a solicitation after bid opening is not unreasonable where a bidder's protest disclosed that the estimated quantity for one item is inconsistent with the reasonably anticipated usage; the agency's review of the estimate indicated that it was inadvertently increased tenfold; the cost impact of the error was significant both in terms of projecting the government's actual cost and in displacing the low bidder; and two of the bidders appeared to have suspected the error and submitted unbalanced bids on that basis, thereby gaining an unfair competitive advantage. Accordingly, the protest was denied.

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Army procurementDefective solicitationsErrorsMaintenance services contractsRepair contractsSolicitation cancellation protestsU.S. ArmySolicitationsBid evaluation protestsCompetitive advantageResolicitationBiddersQuestionable procurement chargesIntellectual property rightsProcurementBids