Blue Water Autonomy and Saildrone allege the Navy improperly excluded them from the Medium Unmanned Surface Vessel competition, raising new legal questions as the service accelerates autonomous fleet modernization.
WASHINGTON | Two prominent U.S. defense technology companies have filed federal lawsuits challenging the U.S. Navy's evaluation process for its next-generation Medium Unmanned Surface Vessel (MUSV) Family of Systems program, escalating a high-profile procurement dispute as the Pentagon pushes to rapidly expand autonomous maritime capabilities.
Blue Water Autonomy and Saildrone separately filed protests in the U.S. Court of Federal Claims, alleging the Navy improperly eliminated them from the MUSV competition despite what both companies contend were fully compliant proposals.
Companies Challenge Navy Evaluation Process
Blue Water Autonomy argues the Navy's evaluation relied on overly restrictive criteria and incorrectly interpreted its proposal.
According to the company's complaint, the service reached conclusions that were inconsistent with the MUSV solicitation and applicable statutory procurement requirements.
Much of the filing remains under seal, leaving many of the specific evaluation details unavailable to the public.
The Navy declined to comment, citing the pending litigation.
From MASC to MUSV
The dispute traces back to the Navy's decision earlier this year to replace its Modular Attack Surface Craft (MASC) program with the broader Medium Unmanned Surface Vessel Family of Systems acquisition.
The MASC initiative focused on a specialized unmanned vessel capable of carrying large modular payloads, including systems comparable in weight to the Navy's Mark 70 Mod. 1 Payload Delivery System.
When the Navy transitioned to the MUSV program, officials expanded the scope to accommodate multiple operational missions rather than a single fleet requirement.
The new solicitation, released in March, evaluated proposals across several categories, including:
- Technical design
- Manufacturing capability
- Business planning
- Test strategy
- Prototype development readiness
Selected companies will advance to surrogate-vessel demonstrations and at-sea testing designed to validate future prototype designs.
Blue Water Says Previous Investment Was Lost
Blue Water Autonomy had already been selected under the earlier MASC effort and was actively developing its Liberty unmanned vessel before that program was canceled.
According to the company, significant financial investments had already been made toward prototype development before the Navy shifted acquisition strategies.
Blue Water contends it should have been allowed to continue competing during the transition into the MUSV program.
Instead, the company says it was excluded before it could participate in planned demonstration events.
Its lawsuit seeks to temporarily halt further MUSV testing and funding until the procurement process is reevaluated.
Saildrone Points to Operational Experience
Saildrone's complaint highlights what it describes as unmatched operational experience in autonomous maritime systems.
The California-based company says it operates the world's largest fleet of contractor-owned, contractor-operated unmanned surface vessels, logging more than 2.5 million nautical miles since 2012.
According to Saildrone, the company first learned it had been eliminated from the competition through a media report before receiving official notification.
Company officials argue they were initially provided no explanation before later receiving what they characterize as a fundamentally flawed evaluation.
Saildrone is requesting reinstatement into the competition and an opportunity to participate in upcoming sea trials.
Seven Companies Advance
Despite the legal challenges, the Navy announced on June 1 that seven industry teams had advanced to the next phase of the MUSV program.
Those companies are:
- Huntington Ingalls Industries
- Leidos
- Saronic Technologies
- Sea Machines
- Galliano Marine Services
- PacMar Technologies
- Birdon
Each will prepare surrogate vessels for operational testing later this fiscal year.
Autonomous Fleet Expansion Continues
The litigation comes as the Navy dramatically increases investment in unmanned maritime systems to support future distributed operations, intelligence collection, logistics, and long-range strike capabilities.
The service's Fiscal Year 2027 budget proposal includes plans to procure 63 unmanned vessels, reflecting the Pentagon's growing emphasis on autonomous platforms across multiple mission sets.
Separately, the One Big Beautiful Bill Act includes approximately $2.1 billion designated for medium unmanned surface vessels, underscoring congressional support for expanding the Navy's autonomous fleet.
Potential Procurement Implications
Federal bid protests involving major defense acquisitions are not uncommon, but successful challenges can delay schedules, require proposal reevaluations, or compel agencies to reopen competitions.
For the Navy, the outcome could influence not only the MUSV timeline but also broader acquisition strategies for autonomous maritime systems as the Pentagon seeks to accelerate innovation while maintaining competitive procurement standards.
The Court of Federal Claims will ultimately determine whether the Navy's evaluation process complied with federal acquisition regulations and whether either company should be reinstated in the competition.
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-- By Masakela P. Rawls
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