The Insider

PAE joint venture heads to court over Navy contract

Marjorie Censer   | January 22, 2018

PAE said today its joint venture, known as DZSP 21, has taken its protest to the U.S. Court of Federal Claims after the Navy awarded Fluor a key deal.

The dispute is over a contract for base operations support services for the Joint Region Marianas on Guam, a program PAE notes DZSP has won three times.

However, each of those awards was protested to the Government Accountability Office. The first time, GAO sustained Fluor's protest, and the Navy made a new decision but again selected DZSP. The second time, GAO conducted an outcome prediction alternative dispute resolution and advised it would likely sustain the protest. The Navy again took corrective action and again chose DZSP.

The third time, GAO sustained Fluor's protest, and, PAE writes, the Navy selected Fluor on the fourth try.

"DZSP 21's protest presents strong grounds for a contract award because its proposal provided the best value to the Navy and other military customers on Guam," PAE writes in today's announcement, noting its joint venture has worked on the contract since 2005.

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