Protest of Agency Decision To Withdraw RFP

A firm protested the Department of Transportation's (DOT) withdrawal of a request for proposals (RFP), which was set aside for award under the Small Business Administration's (SBA) 8(a) program. The protester contended that the action by DOT was arbitrary and capricious. In addition, the protester argued that DOT acted in bad faith by delaying consideration of a competitive procurement until after it had engaged in protracted negotiations with the protester and had induced the protester to incur substantial proposal preparation costs. In this regard, the protester alleged that DOT withdrew the 8(a) set-aside for reasons that were apparent from the outset. The Court of Claims has held that, in order to support a finding of bad faith, the record must show well-nigh irrefragable proof that the agency has a specific and malicious intent to injure the party alleging bad faith. GAO did not believe that the record supported such a finding. Accordingly, the protest was denied.