Eastern Shipbuilding to sue Coast Guard for withholding information in contract protest

Nathan Cobb, The News Herald
·2 min read

PANAMA CITY — A local shipbuilder is gearing up to sue the U.S. Coast Guard about three months after it lost a billion-dollar contract.

According to an email sent to the News Herald by Eastern Shipbuilding officials, the company plans to file a lawsuit against the Coast Guard after it withheld information from an official protest on why the Panama City shipbuilder was not selected in June for a $3 billion contract to construct 16 offshore patrol cutters.

The Coast Guard instead chose Austal USA, a foreign-owned shipbuilder based in Alabama.

Eastern Shipbuilding in Panama City is working to file a lawsuit against the U.S. Coast Guard after it withheld information from a protest about a $3 billion contract to build 11 offshore patrol cutters.
Eastern Shipbuilding in Panama City is working to file a lawsuit against the U.S. Coast Guard after it withheld information from a protest about a $3 billion contract to build 11 offshore patrol cutters.

"The federal procurement process is designed to be fair and transparent," Joey D'Isernia, president of Eastern Shipbuilding, said in an emailed statement sent to the News Herald by his company spokesperson. "Ordinarily, the government discloses reasonable justification for its award decisions to the attorneys representing the parties in a protest.

"The (Coast Guard) has declined to voluntarily disclose the information that might offer that justification. As a result, we are seeking the information and justification through a different legal pathway."

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The information requested by Eastern Shipbuilding in its protest includes portions of Austal USA's proposal and the Coast Guard's scoring evaluations.

Eastern already was given the rights to build four additional ships in the Coast Guard's Offshore Patrol Cutter Program.

Following the award of that contract, the Coast Guard willingly provided protesters the same information now being requested by the Panama City company, officials said in an emailed response to questions submitted by the News Herald.

"Without the requested (information, Eastern's) legal team has not been given the opportunity to adjudicate the case," the email reads. "(Since Eastern's) attorneys were (not) able to see all relevant parts of Austal's proposal, they (are) unable (to) determine whether (Eastern's) proposal was fairly and reasonably scored against Austal's proposal, and whether both proposals were evaluated in the same manner."

Eastern officials said they hope the lawsuit will force the Coast Guard to release the requested information, possibly proving the two companies' proposals were not fairly considered, which might allow Eastern to claim the $3 billion contract.

"(Eastern) believes the award decision was wrong and hopes to have it reversed," the email reads. "The lawsuit does not impact (Eastern's) current work. (The company) is still focused on successfully delivering the first four (previously awarded) OPCs."

This article originally appeared on The News Herald: Eastern Shipbuilding to sue Coast Guard over contract protest info