[Protest of Army Cancellation of IFB for Firing Devices]

B-219448.3: Nov 13, 1985

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A firm protested the Army Material Command's (AMC) cancellation of a solicitation for firing devices, contending that AMC: (1) furnished no basis for its determination that the protester's bid price was unreasonable; and (2) improperly failed to resolve the issue of price reasonableness before it referred the matter of the protester's responsibility to the Small Business Administration, which caused the protester to incur unnecessary expenses in an effort to meet responsibility standards. The protester submitted the only bid under the solicitation. GAO held that: (1) AMC reasonably determined that the protester's bid price substantially exceeded two Army estimates; (2) AMC reasonably cancelled the solicitation because of the excessive bid price; and (3) while AMC may have displayed poor judgment in initiating determinations of price reasonableness and bidder responsibility simultaneously, it was not improper for it to do so. Accordingly, the protest was denied.

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