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B-265700 1 (1995-11-17)

handle is hein.gao/gaocrptacev0001 and id is 1 raw text is: Comptroller General of the United States Washington, D.C. 20548 Decision Matter of: HLC Industries File: B-265700 Date: November 17, 1995 Ruth E. Ganister, Esq., Rosenthal and Ganister, for the protester. Jonathan C. Cramer, Esq., and Donovan Cunningham, Esq., Department of Justice, for the agency. Sylvia Schatz, Esq., and David A. Ashen, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest against cancellation of invitation for bids after bid opening is denied where agency had specific evidence that resolicitation would yield lower prices; the reasonable expectation of cost savings furnished a compelling basis for cancellation. DECISION HLC Industries protests the cancellation of invitation for bids (IFB) No. 1PI-B-1453-95, issued by the Department of Justice, Federal Prison Industries (known as UNICOR), for camouflage patterned cloth. HLC contends that the agency lacked a compelling reason for cancellation after bid opening. We deny the protest. The IFB contemplated the award of a firm, fixed-price requirements contract for a base year and 4 option years for camouflage fabric, which was to be used to manufacture battle dress uniforms for the Defense Personnel Support Center (DPSC). The IFB schedule included four line items, one for each of four different types of cloth; the solicitation required bidders to submit unit and extended prices based on the IFB estimates of 4,350,000 yards of cloth for each line item. The IFB set forth an overall minimum quantity of 4,650,000 yards of fabric over the 5-year contract, but did not establish guaranteed minimum quantities for any one type of cloth. The IFB included Federal Acquisition Regulation (FAR) standard clause § 52.207-4, entitled Economic Purchase Quantity, which requested opinions from firms with respect to whether different quantities of the items would be more economically advantageous to the government. This clause afforded firms the opportunity to recommend an economic purchase quantity, defined as a quantity at which a significant price break occurs; the clause reserved to the government the right to amend or cancel the solicitation and resolicit with respect to any 5311116

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