# Court Allows $2 Billion Navy MUSV Protests

The US Court of Federal Claims ruled that Blue Water Autonomy and Saildrone may proceed with protests challenging the Navy’s decision not to select them for medium unmanned surface vessel (MUSV) prototype development, a competition described as worth **$2 billion**. The government argued that the competition involved an other transaction agreement (OTA), but the court’s ruling allows the challenges to continue without deciding their merits or identifying a contract award.

- The ruling means the Navy’s nonselection decisions remain subject to ongoing litigation; it does not change the competition outcome at this stage.
- For contractors pursuing prototype opportunities structured as OTAs, the case highlights that the procurement’s OTA structure did not prevent these protests from proceeding.
- Navy procurement teams and competing firms should account for protest-related schedule and litigation risk while the challenges remain unresolved.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Contracting Vehicles
**Published:** October 30, 2026

### Government Entities
- US Navy (Navy)
- US Court of Federal Claims

### Vendors
- Blue Water Autonomy Inc. (protester; unsuccessful competitor)
- Saildrone Inc. (protester; unsuccessful competitor)