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  • By Mar-Vic Cagurangan

DZSP 21 files protest in Court of Federal Claims

Fluor Federal Solutions’ transition planning to take over the base operations support services at Joint Region Marianas hits another snag as DZSP 21 has elevated its protest to U.S. Court of Federal Claims, challenging the Navy’s contract award to the rival contractor.

DZSP 21 filed its protest on Jan. 17, one week after the Government Accountability Office denied its protest.

“We are disappointed that the Government Accountability Office denied DZSP 21’s protest,” said PAE CEO John Heller. “We hope to continue our long record of providing outstanding service to the military on Guam, particularly in these tenuous geopolitical times.”

DZSP 21, a PAE joint venture said the case raises significant questions about the role of protests in the procurement process. “During the same procurement, and in the wake of multiple protests by Fluor,” DZSP 21 said in a press release, “the Navy awarded the contract to DZSP 21 three consecutive times beginning in 2014.”

In a statement to Pacific Island Times following GAO’s decision, Fluor manager Brett Turner said the company was pleased by GAO’s decision to uphold the Navy's contract award to the company—after its fourth try.

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“We look forward to beginning the transition and to continuing our strong relationship with the U.S. Navy,” Turner said. “We are excited to support and be a part of the local community while assisting in a critical national security mission that protects the United States and those who serve it.” DZSP 21, however said its protest “presents strong grounds for a contract award because its proposal provided the best value to the Navy and other military customers on Guam. As reflected in government ratings, DZSP 21 has provided exceptional services since 2005.”

DZSP 21 sealed the $488 million contract in 2005, after the expiration of Raytheon’s agreement, which ran from 2000 to 2005.

After beating three subsequent protests, DZSPI 21—which has 900 employees on Guam— continued to handle base support services ranging anywhere from civil engineering activities to power generation and wastewater management.

“Guam, the Navy and Joint Region Marianas may ultimately be better served by a fresh look at the requirements of this work and a new request for proposals,” DZSPI said. “In light of the nearly five-year history of this procurement and the significant operational and strategic developments of the past several years, the existing solicitation may not meet current needs.”


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