[Protest of Navy Cancellation of IFB and Subsequent Resolicitation and Award for Requirement]

A firm protested the cancellation and subsequent resolicitation and contract award under a Navy invitation for bids (IFB) for custodial services. After the first bid opening, the Navy determined that an awardee would be unable to perform the services in the first bid item and decided to resolicit the services using a revised schedule. The protester contended that there was no compelling reason to cancel the solicitation since the revisions were not substantial and could have been made in a modification. GAO held that: (1) an IFB may be canceled after bid opening when the services or supplies are no longer needed; (2) although it was not explicitly stated, the solicitation contemplated and authorized a single aggregate award for all bid items; (3) the Navy had a reasonable basis for concluding that some of the services were no longer needed and, therefore, it had a cogent and compelling reason to cancel the solicitation. Finally, GAO stated that the Navy properly canceled the solicitation, because a contracting officer may not knowingly award a contract under specifications that represent other than the actual needs of the Government. Accordingly, the protest was denied.