Protest Against Partial Cancellation of Solicitation and Procurement Procedures

A company protested the agency's refusal to award it certain items under a solicitation, preference given to certain companies, partial cancellation of the procurement, and awards to a company which it alleged was not equipped to perform the contract. The protest was denied because: cancellation was proper on the basis of excessive prices and needs of the agency; the agency was not obligated to make award for items purchased by the protester in reliance on an agency statement; there was no requirement that an inflation ceiling be included in the solicitation; an award to a bidder whose price exceeded the inflation ceiling had a reasonable basis; a bid evaluation method which the agency found unworkable and was not favored by companies canvased cannot be considered the most cost-effective method; and a firm's ability to perform the contract involved a responsibility determination which is not generally reviewed by GAO.