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A firm protested the Defense Logistics Agency's (DLA) cancellation of a solicitation for hose reeling machines, contending that the cancellation: (1) was not in the government's interest; and (2) would discourage potential offerers and undermine the competitive system. GAO determined that the cancellation was reasonable since DLA determined that a solicitation for a product meeting a military specification would increase competition and reduce costs. Accordingly, the protest was denied.

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