On Monday, Sept. 25, L3 Technologies/Armed Fleet Support announced it filed a protest related to a maintenance contract with Fort Rucker, according to a press release on the company's website.
AFS/L3 held the contract for maintenance services for entry level and advanced Army and Air Force Advanced Rotary Aviation Training since 2003.
Texas-based company M1 Support Services was awarded the contract on Friday, Sept. 15.
The protest was filed with the United States Government Accountability Office (GAO).
“We are convinced our proposal represents the best value to both the military and the U.S. taxpayers,” Christopher E. Kubasik, L3’s president and chief operating officer, said. “We look forward to the GAO’s review.”
L3’s Senior Vice President and President of its Aerospace Systems business segment, Mark Von Schwarz, echoed Mr. Kubasik’s comments and added, “L3 remains fully committed to serving the U.S. Army and Air Force at Fort Rucker, and the protest will not affect current operations.”
Notwithstanding the company's protest, as a result of the Fort Rucker recompetition loss, the company expects to record an impairment charge during the quarter ending September 29, 2017, for a substantial portion of the Vertex Aerospace business goodwill asset of $187 million.
The company is currently assessing the impact of the recompetition loss on the fair value of Vertex, which will ultimately determine the goodwill impairment charge.
Headquartered in New York City, L3 Technologies employs approximately 38,000 people worldwide and is a leading provider of a broad range of communication, electronic and sensor systems used on military, homeland security and commercial platforms.
L3 is also a prime contractor in aerospace systems, security and detection systems, and pilot training. The company reported 2016 sales of $10.5 billion.