The maintenance of the Rota naval base will be carried out until 2030 by the North American firm J&J Worldwide Services Inc.. thus definitively displacing Newimar from Cádiz, who has provided this service for the last 32 years.
The Federal Court of the United States has finally rejected this week the appeal presented by the Cádiz company owned by Antonio Marcos, which had denounced a series of irregularities in this award, the main of which was that the firm based in Austin (Texas) It could not operate in Spain as it was not registered in any commercial registry in this country..
The Cádiz company has been denouncing for two years a clear intention of the North American Navy to take away the contract from the historic Spanish contractor and award it to J&J, which helps maintain North American government bases and facilities in Germany, the Philippines, South Korea, Guantánamo Bay and other countries. The American company, which turned 50 in 2020, has a global workforce of more than 3,200 employees in more than 270 locations in 10 countries..
The contract in question amounts to 132.9 million dollars, since the North American company presented an aggressive offer 23 million dollars below the starting price, which amounted to 156.4 million dollars (about 130 million euros). for the contract until June 2030.
Newimar presented a first appeal against that award, initially before the US Navy that had awarded that tender and, later, before the US Federal Court itself, which initially ruled in favor of the Cádiz firm and annulled the contract.
However, the North American Navy decided not to put it out to tender again and simply review the bidding of the bidding companies, offering J&J the possibility of competing again.. After that, the North American Department of Defense once again awarded the contract to this multinational, which must substitute the contract of the 180 current employees, although the 300 indirect jobs of local suppliers remain up in the air..
The owner of Newimar, Antonio Marcos, assures El Confidencial that “what has occurred is a complete attack by the US Government against a small Spanish company.”. This change of company also occurs after the agreement between the Governments of Spain and the United States to expand the presence of the North American army in this joint use base in the coming years..
The Cádiz businessman has brought the detected irregularities – especially the one referring to the lack of a Spanish CIF to be able to do business “in or with” our country – to the attention of the Government, the Embassy, the Spanish-North American Permanent Committee, and several institutions. more, but has received silence in response. “We feel totally disappointed, and totally unprotected by our authorities,” he explains..
It has only found the support of the Cádiz Business Federation, some of whose companies are also being harmed by this new contract with the North American company.. “We are defenseless against the arbitrariness that the US Administration is now showing, which had always maintained exemplary behavior at the Rota base,” insists Marcos..
According to Newimar, the US Navy attempted to justify J&J's non-compliance based on inadequate advice from the US section of the Permanent Committee between the United States and Spain created to coordinate the shared use of the Rota base under the terms of a Defense agreement..
The claims court had also previously ruled that it lacked jurisdiction over liability challenges as it depended on the Spain-U.S. alliance..
However, Newimar argued that his protest was not based on the Defense Agreement, but rather on Spanish trade laws that establish requirements for foreign companies doing business with Spain..
Despite this, the ruling of the Federal Circuit approved this past Monday supports the claims court thanks to the support of the three judges who were part of the Federal Court for this trial: Alan D. Lourie, Raymond T. Chen y Kara F. Stoll. Newimar was represented by Laurence Schor of Asmar Schor & McKenna PLLC; while the US Government had Tanya Koenig, Brian M. Boynton, Steven John Gillingham and Patricia M. McCarthy, from the Commercial Litigation Branch of the Civil Division of the US Department of Justice, and Seth M. Eddy, from the Naval Facilities Engineering Systems Command Mid-Atlantic Advisor Office. For its part, J&J was represented by Adam Kamlot Lasky, Erica Bakies, Stephanie B. Magnell and Bret Marfut of Seyfarth Shaw LLP.