[Claim for Costs Incurred in Connection With Navy IFB]

A firm sought reimbursement for bid preparation costs and other damages in connection with a Navy solicitation. GAO had sustained a protest by the firm in connection with this procurement in finding that the Navy had acted arbitrarily when it concluded that the awardee satisfied the definitive responsibility criteria of the solicitation's experience clause. Bid preparation costs are recoverable where the Government acts arbitrarily and capriciously regarding a proposal, and the offerer had a substantial chance of receiving the award except for the agency's improper action. GAO found, in this case, that the Navy's improper action precluded the protester from being considered for the award. Accordingly, GAO allowed the claim for the bid preparation costs. However, GAO denied the claim for damages because there was no legal basis to permit recovery of anticipated profits or similar monetary damages.