[Protest of Termination of Air Force Contract for Uninterruptible Power Systems]

A firm protested the Air Force's termination of its contract and subsequent resolicitation for an uninterruptible electric power supply. The Air Force cancelled the contract after it determined that: (1) the protester's descriptive literature did not conform to the solicitation requirements; and (2) it had improperly conducted discussions with the protester in an effort to render the bid responsive. The protester contended that: (1) its bid was responsive; (2) the Air Force properly conducted discussions with it; (3) the Air Force did not have a compelling reason to terminate its contract and resolicit; and (4) any reprocurement would constitute an auction since it had exposed its prices. GAO held that: (1) the protester's bid was nonresponsive because it contained a number of statements that deviated from material specifications; (2) the Air Force improperly conducted discussions with the protester; (3) the Air Force had a compelling reason to terminate the protester's contract and cancel the solicitation since it received no responsive bids; and (4) since the Air Force was legally and reasonably cancelling the solicitation, it was not creating an impermissible auction. Accordingly, the protest was denied.