DZSP 21 Files Federal Court Protest Challenging Guam Contract Decision

January 22, 2018

ARLINGTON, Va. January 22, 2017 – PAE’s joint venture DZSP 21 filed a protest at the U.S. Court of Federal Claims on Wednesday. The protest centers around a U.S. Navy contract awarded to Fluor for base operations support services at Joint Region Marianas, Guam – an award that DZSP 21 had won three times previously.

This 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, the Navy awarded the contract to DZSP 21 three consecutive times beginning in 2014. The Navy only awarded the contract to 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. As reflected in government ratings, DZSP 21 has provided exceptional services since 2005.

“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.”

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. 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.

About DZSP 21

DZSP 21 is a PAE joint venture, where PAE is the majority partner. The joint venture was created in 2005 to provide support services on the island of Guam.

About PAE

PAE is a leading provider of enduring support for the essential missions of the U.S. government, its allied partners and international organizations. With over 60 years of experience, PAE supports the execution of complex and critical missions by providing global logistics and stability operations, technical services and national security solutions to customers around the world. PAE has a global workforce of approximately 20,000 people, operates in more than 60 countries on all seven continents and is headquartered in Arlington, Va.

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Media Contact: Katrina Szakolczai, (703) 656-7423, Katrina.Szakolczai@pae.com

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