Defense Dept., contractor Precision Metals Corp. of Bay Shore reach settlement
Anthony Figlozzi, left, is president of Precision Metals Corp., a defense contractor based in Bay Shore. Credit: Precision Metals Corp.
A Defense Department agency has reached a settlement in a dispute with a Long Island contractor that had threatened to trigger layoffs.
The Defense Logistics Agency had sought to exclude Bay Shore-based Precision Metals Corp. from competing for contracts for three years, using a penalty known as a debarment.
In July, U.S. District Court Judge Joanna Seybert granted a temporary restraining order to Precision Metals, allowing it to continue operations and forestalling the company's contingency plan to lay off 11 of its 42 employees.
The DLA cited delays in delivering five parts in moving to debar the company, but lead defense lawyer Todd J. Canni of Pillsbury Winthrop Shaw Pittman LLP said the agency skirted debarment procedures such as meeting with the company's representatives before enacting the ban.
"It's just an agency deciding to skip the process," Canni said.
The DLA did not immediately respond to an email seeking comment.
The three-year agreement, dated Oct. 6, calls for an independent monitor to ensure that Precision Metals is reaching benchmarks for on-time delivery.
The company's parts are used in military aircraft, including the A-10 Thunderbolt attack jet, C-130 turboprop and Apache helicopter. Precision, founded in 1987, said in court papers that it has delivered more than 290,000 parts.
Precision Metals' revenue, derived almost entirely from government contracts, reached $7.5 million in 2021, said Anthony Figlozzi, the company's president.
The company, in court filings, said delays in the delivery of parts could be traced to faulty technical specifications as well as delays by the Defense Department in responding to requests for support and administrative services that could have resolved the issues.
Canni said the dispute was avoidable and that Precision Metals is left with "hundreds of thousands of dollars" in bills for legal fees and court costs.
"This poor business has to cover it," he said.
The agreement calls for Precision Metals to achieve on-time delivery of 75% of its U.S. government contracts by the end of the first six-month period, increasing to 85% by the end of the three-year agreement.
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.
Newsday Live: A Chat with George Stephanopoulos Newsday Live and Long Island LitFest present a conversation with the former senior advisor to President Clinton and co-anchor of "Good Morning America."
Newsday Live: A Chat with George Stephanopoulos Newsday Live and Long Island LitFest present a conversation with the former senior advisor to President Clinton and co-anchor of "Good Morning America."
