Space Force delays $12B deal with contractor after court rules company acted fraudulently: report

The Space Force is reportedly delaying a $12 billion deal with a contractor after finding out a county court in Texas previously characte...


The Space Force is reportedly delaying a $12 billion deal with a contractor after finding out a county court in Texas previously characterized the contractor as engaging in fraudulent action in an unrelated business transaction that involved the Navy.

The Washington Post reported Wednesday that the Space Force is evaluating the case involving NSTXL, which was selected by the Space and Missile System Centers earlier this month to oversee billions of dollars in contracts over a 10-year period.

The scrutiny focuses on NSTXL’s earlier partnership with an events management firm as part of a contract with the Navy. NSTXL ended its relationship with the events firm after the firm supposedly failed to perform its contractual responsibilities, according to the Post, but NSTXL drew harsh criticism from the judge for what followed.

In a Nov. 24 ruling published by the Post, Judge Steven Kirkland of Harris County said the contractor engaged in “illegitimate use of the corporate form” by cutting the events firm out of future business and shifting business to NSTXL-NC, a separate organization that had no directors other than Tim Greeff, president of NSTXL.

Kirkland further wrote that the organizations “engaged in a series of activities to attempt to cover-up and hide their misdeeds,” like submitting false statements in court to try and dismiss the litigation.

Space and Missile Systems Center spokeswoman Capt. Caitlin Toner told the Post that the agency was “not made aware” of the Texas litigation when it was evaluating bids for its contract. She added that they are “further assessing the matter.”

NSTXL spokesperson Shelley Tweedy told the Post that it plans to appeal, saying the court ruling “will not impact NSTXL’s ability to provide its full suite of services in support of the government, its members, and most importantly, the warfighter.”

The Hill has reached out to the Space Force and NSTXL for comment.

The agreement was supposed to be awarded on Dec. 31, pending a 30 day congressional notification period, according to an announcement from NSTXL in early December.

The Space Force was created as the sixth branch of the military with President TrumpDonald TrumpGeorgia signature audit finds no fraud in presidential election Pompeo calls for release of Chinese journalist jailed over coronavirus coverage Pence refused to sign on to plan to overturn election, lawyers say MORE’s signing of the annual defense policy bill in 2019. Since then, about 2,400 service members have officially transferred into the service, with plans to grow to 6,400 active-duty troops and add a reserve component in 2021.

President-elect Joe BidenJoe BidenGeorgia signature audit finds no fraud in presidential election Pence refused to sign on to plan to overturn election, lawyers say New Lincoln Project ad shows Trump border wall built from tombstones of COVID-19 victims MORE and his transition team have not revealed their plans for the Space Force after Biden takes office next month.



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Newsrust: Space Force delays $12B deal with contractor after court rules company acted fraudulently: report
Space Force delays $12B deal with contractor after court rules company acted fraudulently: report
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