[Protest of Cancellation of Air Force IFB for Hazardous Waste Cleanup]

B-219930: Aug 30, 1985

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A firm protested the cancellation of an Air Force small business set-aside after the contracting officer determined that the protester's bid price was unreasonable. The protester, who was the sole bidder, contended that the Air Force failed to have a compelling reason to cancel its procurement and argued that the agency should have held negotiations with it on price. Federal regulations permit solicitation cancellation if bid prices received are unreasonable, and GAO will not question such a determination absent a showing of fraud or bad faith. GAO found that the contracting officer's determination that the price was unreasonable was justified, and the protester failed to allege fraud or bad faith; therefore, GAO had no reason to object to the bid rejection or the solicitation cancellation. Furthermore, federal regulations do not require that negotiations be held after solicitation cancellation due to price unreasonableness, and the protester failed to show that such a negotiation was authorized in this case; therefore, GAO had no legal objection to an Air Force resolicitation. Accordingly, the protest was dismissed.