Joint Venture Cleared for Guam Project

The Kilo Wharf, Guam project presses on. Recently, the United States Court of Federal Claims lifted an injunction and upheld the Navy's award to the joint venture of Japanese and U.S. construction firms. Watts-Healy Tibbitts v. United States and IBC/TOA Corporation, No. 08-261C.   Months earlier the Court had enjoined the contract award; the Court originally held that the Navy contracting officer acted arbitrarily in finding the Japanese firm as "responsible" despite suspension and fines for bid rigging in Japan and failure to disclose this in the bid certification. The Court at that time ordered a new responsibility determination at the "flag officer or presidential appointee level."  The Navy conducted a new review and found that joint venture to be responsible. On the next round of review, the Court lifted the injunction and held that although the Court did not agree with the Navy's decision on its new responsibility determination, it would defer to the agency.  Foreign and U.S. companies will need to work together to perform projects during the massive Guam build up by the U.S. and Japanese governments. The Watts-Healy Tibbitts case provides insight to one of many issues that U.S. and foreign partners might face.