February 15, 2012

Lockheed Martin files a protest for Northrop Grumman's CANES award

News Report

Here in this blog we have recently reported that Northrop Grumman was awarded a $37 Million delivery order for the Consolidated Afloat Networks and Enterprise Services (CANES) common computing environment.

The CANES program aims at consolidating and replacing numerous legacy systems and deliver an open, common network to every ship, submarine and shore-based command and control center in the U.S. Navy. The contract awarded by Northrop Grumman includes options, which, if exercised at the maximum quantities, would bring the cumulative value of the contract to an estimated $638 Million. The issuance of this delivery order to Northrop Grumman is the result of the CANES competitive down-select to a single contractor, which has witnessed a head-to-head competition with Lockheed Martin.

As reported by Bloomberg, Lockheed Martin has filed a protest with the U.S. Government Accountability Office (GAO) claiming potential flaws in the evaluation process which could have precluded consideration of the best solution for the U.S. Navy. The protest will be reviewed by GAO, who has now one hundred days to come to a decision. Normally the protested contract is placed on hold while the GAO conducts its review. If Lockheed disagrees with the result then they may appeal to the Federal courts.


Northrop Grumman is confident that its CANES proposal provides the Navy a best-value CANES solution and we stand ready to quickly help the Navy get this critical system to the warfighters,” said Randy Belote, a spokesman for Northrop Grumman. “We are disappointed that a protest was filed and have no further comment at this time.

References: Bloomberg (1), C4I Technology News (2), Defense Procurement News (3)

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