By a written decision issued November 5, 2007, the details of which are under a protective order, the U.S. General Accountability Office ("GAO") ruled in favor of Earl Industries, LLC in its protest of the Navy's award of a $60 million, multi-ship multi-year ("MSMO") contract for the repair and maintenance of the Navy's FFG-7 Class Frigates at Naval Station Mayport, Florida.

Issued in February 2006, the Navy's Solicitation No. N00024-06-R-4409 sought proposals for Execution Planning, Maintenance, Repair and Alterations on FFG-7 Class Ships Homeported in and Visiting Mayport, Florida.  The solicitation is part of the Navy's MSMO contract program.  This program is structured to award one prime contractor a single cost-plus-award-fee contract that covers the repair of one or more classes of ships homeported in or visiting a particular port over a period of years.

Earl Industries and three other ship repair firms submitted proposals under the solicitation.  On July 12, 2007, Naval Sea Systems Command ("NAVSEA") awarded the contract to one of the other ship repair firms.  Earl promptly filed a protest of the award with GAO.  In response to Earl's protest, the Navy immediately stayed performance of the contract while GAO considered Earl's protest.

While the bulk of the decision remains under a protective order, a digest of the decision and the GAO's recommended action has been released.  GAO sustained Earl's protest on three independent grounds. 

GAO recommended that the Navy either amend the solicitation and obtain new proposals from the offerors or reevaluate the proposals previously received and make a new source selection decision consistent with GAO’s decision and accordance with the law.