[Request for Reconsideration of Protest Against NASA Solicitation Cancellation]

A firm requested reconsideration of a decision which held that the National Aeronautics and Space Administration (NASA) properly cancelled a solicitation for sealed bids because it determined that sufficient funds were not available to make an award. In its request for reconsideration, the protester contended that: (1) the decision failed to indicate that bids had been opened prior to the cancellation; (2) unavailability of funds is not one of the nine compelling reasons for cancellation of a request for sealed bids; (3) the services required under the solicitation were later added to a negotiated procurement; and (4) since NASA failed to comply with regulations in not anticipating cancellation prior to bid opening, the solicitation should not have been cancelled. GAO has held that: (1) cancellation of a solicitation after bids have been opened is not permitted unless a cogent and compelling reason for cancellation exists; and (2) an agency has an unquestionable legal right to cancel a solicitation when sufficient funds are not available. GAO found that: (1) the funds had been used for an emergency investigation of an explosion; and (2) even if the funds had not been directed for use, NASA would not have awarded a contract under the solicitation, because the same services were being acquired in a negotiated procurement. Accordingly, the prior decision was affirmed.