[Protest of Cancellation of DLA Solicitation for Hose Assemblies]

A firm protested the Defense Logistics Agency's (DLA) cancellation of a solicitation for hose assemblies, contending that: (1) DLA improperly considered a nonresponsive, low bid when it determined that all other bid prices were unreasonable; and (2) there was no compelling reason to cancel the solicitation since DLA had purchased the same equipment in the past and its bid was within the range of the most recent purchase. GAO held that: (1) since DLA rejected the low bid as nonresponsive and the protester's bid price was 16.1-percent higher than the low bid, the contracting officer had a compelling reason to cancel the solicitation based on unreasonable bid prices; (2) procurement regulations permit solicitation cancellation when all otherwise acceptable bids are unreasonably priced; (3) a determination of price reasonableness is a matter of administrative discretion which it will not review absent a showing of possible fraud or bad faith; (4) a nonresponsive bid is relevant in the determination of price reasonableness; and (5) the contracting officer did not abuse his discretion in cancelling the solicitation. Accordingly, the protest was denied.