[Protest of Navy Decision to Reopen Discussions Under Solicitation for Tug and Towing Services]

B-236027: Oct 27, 1989

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A firm protested the Navy's reopening of discussions under a small business set-aside solicitation for tug and towing services, contending that the Navy should have cancelled the solicitation and resolicited, given that a long time elapsed between the initial solicitation and the Navy's termination of the protester's contract, leading to requirements changes. GAO held that the Navy reasonably: (1) terminated the protester's contract after the Small Business Administration determined that the protester was affiliated with a large business; and (2) decided to reopen negotiations, since it was not required to cancel and resolicit. Accordingly, the protest was denied.

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