A firm protested the Navy's cancellation of a solicitation and its decision to continue operations in-house. Although the protester submitted the lowest bid, which was also lower than the Navy's estimate, a revision by the Navy of the cost estimate concluded that in-house performance of the work would be less costly. The protester argued that: (1) the revision was improper because it was based on...

DIGEST: PROTEST AGAINST AGENCY'S DETERMINATION TO RETAIN FUNCTION IN-HOUSE BASED ON A-76 COST COMPARISON WITH BIDS RECEIVED IN RESPONSE TO IFB IS DENIED WHERE ERRORS MADE BY THE AGENCY IN COMPUTING ITS IN-HOUSE COST ESTIMATE. STATED THAT "SERVICES WILL BE PROVIDED UNDER GUIDELINES SET FORTH IN OFFICE OF MANAGEMENT AND BUDGET (OMB) CIRCULAR A-76.". THREE BIDS WERE RECEIVED. BIDS WERE OPENED WITH CS...