[Protest of Solicitation Cancellation and Sole-Source Contract Award]

B-218292: May 16, 1985

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A firm protested a Navy solicitation cancellation and subsequent sole-source award to a company whose president was the protester's former project manager, contending that: (1) it could perform the work without its former manager; (2) the small purchase procedures that the Navy used in awarding the contract split its overall requirements, which exceeded the $25,000 threshold; and (3) the former project manager wrongfully competed with the protester and misappropriated trade secrets. GAO held that: (1) unless justification for a sole-source award is shown to be unreasonable, it will not question a procurement; and (2) wrongful competition and misappropriation of trade secrets are not for consideration under bid protest regulations. GAO found that the Navy acted properly in its cancellation and subsequent contract award and in its utilization of small purchase procedures. Accordingly, the protest was denied in part and dismissed in part.