[Request for Reimbursement of Bid Preparation Costs]

A firm requested reimbursement of bid preparation costs under a Corps of Engineers solicitation for dredging services. The requester contended that the Corps knew prior to bid opening that only one bidder could perform the work because of exclusive access to disposal areas and, therefore, the Corps arbitrarily solicited bids with the knowledge that they would not be considered. GAO noted that an unsuccessful bidder that proves that it needlessly prepared a bid is entitled to recovery of bid preparation costs. However, GAO found that the presolicitation information available to the Corps did not indicate that only one firm could perform the contract. GAO held that, since the Corps was not informed until after bid opening that it could solicit from only one bidder, cancellation of the solicitation was not arbitrary. Accordingly, the claim was denied.