[Claim for Anticipated Profits and Bid Preparation Costs]

A firm claimed bid preparation costs and anticipated profits from the Corps of Engineers as a result of a protest that was sustained in its favor. GAO had recommended that the Corps terminate a contract and make award to the protester because the Corps had improperly canceled a solicitation to the detriment of the protester. The Corps advised GAO that termination would be impractical and the protester filed this claim as a remedy. GAO held that: (1) there was no legal basis upon which to award anticipated profits to the protester; and (2) since the Corps acted in an arbitrary and capricious fashion in canceling the original solicitation, the protester was entitled to bid preparation costs. Accordingly, this portion of the claim was allowed.