Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, April 20, 1990 TAG: 9004200201
SECTION: BUSINESS PAGE: A7 EDITION: METRO
SOURCE: RON BROWN and GEORGE KEGLEY BUSINESS WRITERS
DATELINE: LENGTH: Medium
Litton's appeal resulted in a stay of the contract award until the General Accounting Office can ascertain why ITT was awarded the contract for Generation III night-vision goggles.
Litton contends its $139 million bid was $25 million lower than ITT's. GAO routinely investigates when a contract award is challenged.
Robert G. Williams, ITT's vice president and director of business development, said he expects no layoffs at the 1,100-employee plant during the GAO's 90-day review period. The contract went into effect March 23.
"We have the contract," he said, "but we are not authorized to do the work."
Williams said ITT has work on other contracts to keep employees busy.
The Litton challenge was forwarded to GAO by Arizona Sens. Dennis DeConcini and John McCain.
Williams said ITT plans to rally its own political muscle in an effort to fight the challenge.
Twice this year, Sen. John Warner, R-Virginia, has publicly commended ITT production of the night-vision goggles. The Generation III devices were instrumental in the Army's successful invasion of Panama in December and saved lives, according to Warner.
Williams, anticipating an all-out battle between the two giant military contractors, declined comment on why he thinks the contract should have gone to ITT.
"This is a serious protest," he said, referring to Litton's challenge. "These guys are going to be doing this for the next couple of weeks. It is going to get nasty."
Litton employs about 700 people, most of whom have written one or more letters complaining about the contract award. Without the contract, Litton probably will have to lay off up to half of its employees when its current Army contract runs out in the fall.
"If the government could give us a reasonable explanation for why it failed to give us the contract, we'd take our licks without complaining. We'd figure it was best for the country," said Tom Schaffer, a Litton engineer.
When the contract was announced last month, Richard B. Lewis, president and general manager of the Roanoke County ITT plant, said the Army's continuing business would give the company a base from which to operate.
He said ITT would have to drum up new business if it planned to keep pace with 1989 and 1990 production.
Already there have been rumblings of some shaky economic times for the company. Earlier this month, Lewis said layoffs are probable because the Army did not renew a contract for production of an earlier generation of night-vision goggles.
by CNB