Lockheed cries foul over Northrop's CANES win

Lockheed Martin filed a bid protest this week over Northrop Grumman winning the Navy’s Consolidated Afloat Networks Enterprise Services contract worth up to $637.8 million.

Known as CANES, the contract is being used to outfit up to 54 ships with new computer networks. Eventually, the Navy wants new networks on 286 ships and 60-plus submarines. Other competitions will be held for work on those vessels.

But Northrop Grumman won the first contract out of the gate and will be working on guided-missile destroyers and multi-purpose amphibious assault ships, the Defense Department said. The companies were locked in a one-on-one battle for the first contract.

Lockheed Martin spokesman Keith Little said in a statement that the company protests awards “only when we believe flaws in the evaluation process preclude consideration of the best solution for the customer, as is the case with our proposal for the Navy’s Consolidated Afloat Networks and Enterprise Services program.”

Northrop Grumman spokeswoman Sudi Bruni said that the company's proposal is the best value for the Navy. "We stand ready to help the Navy get this critical system quickly to the warfighters. We are disappointed a protest was filed."

Lockheed filed the protest on Feb. 13 and the Government Accountability Office docket says a decision is due May 23.