[Protest of Corps of Engineers IFB Cancellation]

A firm protested the Army Corps of Engineers' post-bid-opening cancellation of an invitation for bids (IFB) which was a 100-percent small business set-aside. It also protested the cancellation of the resolicitation of the procurement and alleged that the low bidder on the resolicitation was neither responsible nor a small business. The protester requested GAO to require the Corps to reinstate the first IFB and award it the contract, or award it bid preparation costs. The Corps canceled the first IFB after determining that the provisions governing payment were inadequate, and it resolicited the requirement. Later, the Corps canceled the resolicitation because of adverse weather conditions. Cancellation of the resolicitation rendered the protest academic. In any event, GAO does not review affirmative responsibility determinations or small business size status determinations. In addition, GAO does not disturb a contracting officer's determination to cancel a solicitation after bid opening unless the decision lacked a reasonable basis. GAO found that the Corps provided sufficient justification for canceling the IFB. Finally, bid preparation costs are recoverable only when the Government has engaged in arbitrary and capricious conduct. Since the Corps properly canceled the solicitation, it did not act arbitrarily or capriciously. Accordingly, the protest and request for bid preparation costs were denied.