[Protest of Navy Modification and Cancellation of Solicitation for Precision Measurement Equipment]

B-252945: Aug 5, 1993

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A firm protested the Navy's amendment and subsequent cancellation of a solicitation for measurement equipment, contending that the Navy improperly converted a small business small purchase set-aside into an unrestricted procurement. GAO held that: (1) the Navy properly converted the procurement to an unrestricted procurement, since the only bid from a small business exceeded the catalog prices and a large business bid; (2) a small business vendor cannot recover bid preparation costs when an agency cancels a solicitation that was erroneously designated as a small business set-aside; and (3) the protester failed to demonstrate how the Navy's improper action prejudiced it. Accordingly, the protest was denied.