Schumer Demands Navy End 6-Month Delay And Immediately Follow Through On Contract With Rome Research Corporation

Press Release

Schumer Demands Navy End 6-Month Delay And Immediately Follow Through On Contract With Rome Research Corporation

U.S. Senator Charles E. Schumer today urged the Department of the Navy to immediately finalize their contract with Rome Research Corporation (RRC) to have RRC manage and oversee certain operations of the Naval Satellite Operations Center (NAVSOC). Although the decision to award the contract to RRC was reached in October 2006 after a competitive bidding process, the Navy still has not provided the requisite Congressional Notification that represents the last hurdle before the contract can begin.

"This is red tape at it's worst - it is inexcusable that operations have been repeatedly held up by Navy foot-dragging when RRC has demonstrated numerous times that this contract is the most effective and cost efficient option for the Navy," said Schumer. "Those at RRC have worked hard for this contract and the entire Oneida County community will benefit from this economic boost. The Navy must act now to ensure that operations begin immediately so that the workers at RRC and their families are not left hanging in limbo another day."

The Department of the Navy issued an initiation performance decision announcing Rome as the winner of the NAVSOC competition in October, 2006. RRC was then officially awarded the contract in January of 2007 to manage and oversee certain operations of the Naval Satellite Operations Center (NAVSOC). This $33 million performance decision was made after a competitive bidding process during which RRC demonstrated that they could perform the NAVSOC functions for 11% less than the Navy, providing a $4.3 million savings to the government. As part of the Navy's A-76 competitive sourcing process, RRC spent over a year working with the Navy, making 9 different submissions to the department to demonstrate that they could do the work effectively and at a lower cost than the government. "Enough already," said Schumer, "RRC has jumped through hoops, leapt over hurdles and passed every test: the Navy needs to hold up their half of the bargain and let them put people to work."

Under the terms of the award, Rome Research Corporation would be charged with managing four existing facilities operated by NAVSOC, including outlets in Port Magu, California; Colorado Springs, Colorado; Bangor, Maine and Finegayan, Guam NAVSOC is responsible for operating, managing and maintaining a variety of strategically important satellite systems on behalf of the Navy. These satellites provide critical information and intelligence gathering resources, as well as navigational and logistical support to military outposts throughout the globe.

Overall management of NAVSOC would be performed in Rome, NY. RRC has approximately 600 employees around the world and 200 in New York. They currently provide support functions to several Department of Defense projects throughout the United States and around the world. This A-76 contract would provide work for existing employees and allow RRC to hire 10 new managers.

Since the initial decision, this contract has received, and stood up to, the utmost scrutiny both before and after it was rewarded. After the contract was granted a protest was filed by an Agency Tender Official with the General Accounting Office (GAO) objecting to the deal. The GAO dismissed this protest. As recently as last Friday, April 20th, an internal investigation by the Navy again cleared RRC to undertake this work.

Under Public Law, the Navy must submit a report to Congress detailing the results of such a public private competition. After this notification is made, there is a 60-day waiting period before the contract can commence. This notification is generally made directly after the award decision is made. No Congressional Notification has been issued in the case of RRC.

In a personal letter to Secretary of the Navy, Donald C. Winter, Schumer wrote, "In order for the contract to commence, it is my understanding that the Navy must now provide congressional notification of the award. As the award was made over 6 months ago, I would urge you to do this with all due speed."

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