[Protest of Navy's Refusal to Allow Bid Correction]

A firm protested the Navy's refusal to allow it to correct a mistake in its bid, contending that the government estimate used to reject its bid was unreasonable. GAO held that the Navy: (1) improperly relied on an unreasonable government estimate to reject the protester's bid; and (2) should have allowed the bid modification, since there was clear and convincing evidence of the bid error and the protester's bid would remain low. Accordingly, the protest was sustained, and GAO recommended that the Navy: (1) award the contract to the protester, if otherwise proper; and (2) reimburse the protester for its protest costs.