Raytheon Can Challenge Northrop’s ‘Other Transaction’ Selection

Raytheon Co. is cleared to protest the US government’s selection of Northrop Grumman Systems Corp. to provide a new missile defense system under an “other transaction” agreement worth $650 million, the US Court of Federal Claims said.

Congress gave the military other transaction authority to provide a more flexible method to facilitate research, development, and prototyping than with traditional procurement contracts, the court said. The government argued that the court lacked jurisdiction because the challenged award didn’t involve a procurement or a proposed procurement.

But this military defense project easily falls within the court’s bid protest jurisdiction under the Tucker ...