Drone Boat Maker Saildrone Wins Protest Over Navy Contract

Saildrone’s successful challenge to its exclusion from a Navy drone boat competition could have implications beyond a single contract, raising questions about judicial review of the Pentagon’s alternative acquisition methods. Woods Rogers Principal Tony Mazzeo provided analysis to The New York Times in an article covering a U.S. Court of Federal Claims ruling that found the Navy treated Saildrone’s proposal unfairly during a competition to develop medium unmanned surface vessels.

Tony, a former Navy lawyer who represents government contractors, told the Times that prevailing in a government bidding dispute “is an uphill battle.” Federal agencies receive substantial deference in defining their requirements and evaluating competing proposals, making challenges to technical evaluations particularly difficult.

The decision also addressed the court’s authority to hear the dispute. The government argued that the competition involved Other Transaction Agreements, or OTAs, rather than procurement contracts subject to the court’s bid protest jurisdiction. By allowing the challenge to proceed, Tony told the Times, the court “arguably expanded its jurisdiction.”

As additional analysis, Tony explains that the court found this particular competition sufficiently connected to the Navy’s procurement of unmanned vessels to fall within its jurisdiction. With conflicting case law concerning judicial review of OTAs, that determination could be consequential for contractors participating in similar competitions.

Tony also emphasized the importance of consistent evaluation standards. His review of the publicly available filings identified the Navy’s withdrawal of two grounds for excluding Saildrone and evidence that competing proposals received different treatment. Those circumstances helped explain why Saildrone prevailed despite the substantial hurdles facing protesters.

He offered further context on how protest outcomes are measured. The Government Accountability Office’s fiscal year 2025 report showed a 14% sustain rate for protests decided on the merits. Its broader effectiveness rate, which includes voluntary agency corrective action, was 52%. As Tony notes, a protest can produce meaningful relief without a formal decision sustaining it. Those figures concern GAO proceedings, a separate forum from the court that heard Saildrone’s challenge.

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