Long Island defense contractor wins restraining order against Defense agency
Anthony Figlozzi, left, is the president of Precision Metals. Credit: Precision Metals Corp
A Long Island defense contractor has won a temporary restraining order instructing the federal Defense Logistics Agency to reauthorize the Bay Shore company to bid on projects.
The ruling by Judge Joanna Seybert in U.S. District Court in Central Islip Friday also provided a reprieve for workers targeted for layoffs, said Anthony Figlozzi, president of Precision Metals Corp.
The defense contractor set aside plans to lay off 11 of the company's 42 employees in the event that the Pentagon's action was upheld, he said.
"It took a weight off my shoulders," Figlozzi said. "As we ran out of work for people … we had to make hard decisions."
The 35-year-old company — whose parts are used in military aircraft such as the A-10 Thunderbolt attack jet, the C-130 turboprop and Apache helicopter — resorted to the courts to reverse an April 2021 ruling by a unit of the DLA that banned Precision Metals from bidding on new contracts. The DLA is part of the Defense Department.
In court papers, Precision said that it has successfully delivered more than 290,000 parts since its founding in 1987.
The contract ban, known as a debarment, was based on delays in delivering five parts. The three-year debarment meant that the company could not bid on contracts for government agencies, including the Defense Department, or "prime" contractors, such as Northrop Grumman Corp.
"I couldn't even turn to doing railroad work," Figlozzi said.
The temporary restraining order issued by Seybert said that Precision has "shown a likelihood of success" in its claims that the Pentagon agency violated procedures in failing to meet the company's representatives or hold a hearing before enacting the ban.
Government contracts account for more than 99% of Precision Metals' revenue, which reached $7.5 million in 2021, Figlozzi said.
In its court filings, Precision Metals acknowledged that delivery of the parts were delayed, but that the cause could be traced in part to illegible, incomplete or ambiguous technical specifications.
The company also cited the Defense Department's delays in furnishing support and administration services to resolve the issues, such as when the drawing for an aircraft structural beam was found to be inaccurate.
Staffing issues caused by the COVID-19 pandemic also exacerbated delays, Figlozzi said.
The Defense Logistics Agency, citing ongoing litigation, declined to comment.
The temporary restraining order lasts for 14 days. On July 22, when the order would expire, the court is scheduled to hear oral arguments.
Precision Metals is represented by Pillsbury Winthrop Shaw Pittman LLP. Among the lawyers on Precision's team is Richard P. Donoghue, a former U.S. attorney for the Eastern District of New York and deputy attorney general in the Trump administration.
In June, the Hofstra University alumnus testified before the United States House Select Committee on the January 6 attack on the Capitol in 2021. His testimony focused on pressures exerted by President Donald Trump to invalidate and overturn the 2020 election.
Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.
