[Protest of Navy Decision To Cancel IFB After Bid Opening]

A firm protested the Navy's cancellation after bid opening of a solicitation for transportation services. The protester also claimed reimbursement for bid preparation costs. The Navy cancelled the solicitation because estimates of the work to be performed were ambiguous. The protester contended that the cancellation was improper because the solicitation contained a work schedule that was to take precedence over all other solicitation provisions. GAO held that: (1) the Navy cancelled the solicitation because its minimum needs would not have been met if the solicitation clause cited by the protester had been invoked; (2) the protester failed to demonstrate that the cancellation lacked a reasonable basis; and (3) since the Navy did not act arbitrarily or capriciously in cancelling the solicitation, the protester could not be reimbursed for its bid preparation costs. Accordingly, the protest and claim were denied.