[Protest of Navy Ship Parts Control Center Cancellation After Bid Opening]

B-213541: Sep 18, 1984

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A firm protested the Navy's cancellation of an invitation for bids (IFB) after bid opening on the basis of inadequate treatment of government-furnished material (GFM) in the drawings and specifications. The protester contending that: (1) as low bidder, it should have received the award; (2) the perceived deficiencies did not present a compelling reason for cancellation; and (3) any discrepancy regarding GFM could be resolved after award. In a review of the solicitation cancellation, the Navy discovered further defects in the specifications. GAO found that the Navy's action was proper, since: (1) there was no legal basis upon which to question the Navy's determination of its minimum needs; (2) revision to correct the specifications would have had a material effect on contract costs; (3) award under the original IFB would not meet the Navy's minimum needs; (4) award to the protester under deficient specifications, giving it an exclusive opportunity to revise its bid, would be prejudicial to the other bidders; and (5) the subsequently noted deficiencies supported cancellation even though the original basis may have been in error. Accordingly, the protest was denied.