Court cancels Navy’s contract with Fluor Federal Solutions

The Court of Federal Claims on Friday put the brakes on the Navy’s half-a-billion-dollar contract with Fluor Federal Solutions for base operations support, granting DZSP 21’s request for injunctive relief.

In a brief written order following the oral arguments on March 9, the court declared that “the Navy’s contractual award to Fluor is set aside, and the Navy is enjoined to perform a new evaluation of DZSP’s and Fluor’s proposals or to conduct an entirely new solicitation, whichever it chooses.”

The court’s order halted the base op transition process, which was originally scheduled to begin on April 1. Prior to the court’s decision, DZSP 21’s employees were expected to receive their worker adjustment and retraining notification in preparation for either job transition or contract termination by April 30. DZSP 21 had 900 employees. “There was so much demoralization due to the protest,” a source said. “Some of the employees have moved on and have found jobs elsewhere.”

“We are aware of the recent federal court decision against the Department of the Navy in the award of the base operation support contract for Joint Region Marianas. This will not impact current operations in Joint Region Marianas,” said Lt. Ian M. McConnaughey, public affairs officer for JRM.

Based on the court’s decision, the Navy has 60 days to appeal. It wasn’t clear, however, if DZSP 21 would get a bridge contract pending new evaluation of the bids.

DZSP 21 President and CEO Wayne Cornell said it was “hard to say at this point” to determine the next step for DZSP 21. “We will react to government direction. The Navy may appeal the court’s decision.”

On Jan. 31, NAVFAC published a Request for Information on establishing a bridge contract of up to 10 months for base operations support.

“Our current bridge contract ends 30 April 2018. Therefore, we expect NAVFAC Pacific to negotiate another bridge contract to give the Navy an opportunity to respond to the court’s decision," Cornell said.