The review found the division's cost sheet did not allow for a fair comparison among bidders and that its specifications were flawed.
"Based on the above, there was not an equitable way to evaluate and award the contract; therefore, the contract has been cancelled as of September 30, 2012," Sheets wrote. "This contract will be re-bid with revised specifications in the near future."
According to a bid file, the state is more interested in 1-ply than 2-ply toilet paper:
The state estimated it would need 10,000 rolls of 1-ply toilet paper but only 8,500 rolls of 2-ply.
The order also calls for thousands of other rolls of paper towels and other tissues.
Diane Holley-Brown, Division of Purchasing spokeswoman, said the number of protests each year is "very small."
"Last fiscal year (2012), the Purchasing Division received 25 protests, for a percentage of 1.86% of the 1,341 new purchase order issued," she said in an email. "However, having the safeguard in place for the vendor to be able to protest is important in ensuring the integrity of the state procurement process."