[Protest of Cancellation of Navy IFB]

B-211359.2: Oct 31, 1983

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A firm protested the cancellation of a Navy solicitation, contending that: (1) the Navy did not act in good faith with respect to the cancellation; and (2) while the protester was being requested to extend its bid, the Navy was taking steps to cancel the solicitation. The protester also sought monetary damages for the harm it suffered as a result of the Navy's actions. Contracting officers have broad discretion in deciding whether to cancel a solicitation. Absent indications of abuse of that discretion, GAO will not overturn such a decision. GAO held that the Navy did not abuse its discretion or act in bad faith. Further, GAO held that there is no legal basis for an unsuccessful bidder to recover damages in the form of anticipated profits, the costs of pursuing a bid protest are not recoverable, and bid preparation costs may only be recovered in a successful protest. Accordingly, the protest was denied in part and dismissed in part.

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