Night Vision Corp. v. The United States

The United States Air Force (Air Force) (defendant) was interested in developing night-vision goggles (NVGs) with an expanded field of view. To that end, the Air Force awarded Night Vision Corp. (NVC) (plaintiff) a phase I contract under the Small Business Innovation Research (SBIR) program. The Air Force tasked NVC with developing a single prototype for panoramic NVGs (PNVGs), which was done. Subsequently, the Air Force awarded NVC a SBIR phase II contract under which NVC was required to produce 12 prototypical PNVGs. NVC subcontracted with Insight to provide design, assembly, and manufacturing assistance. NVC and Insight did not work well together, and NVC had challenges with managing Insight’s role when Insight demanded exclusive manufacturing rights in the future commercial production of PNVGs. NVC did not have its own production capability. Eventually, NVC successfully completed phases I and II of the project. NVC marked some of its data as proprietary, the disclosure of which was restricted, but did not mark any actual prototypes of PNVGs delivered to the Air Force. As the project was proceeding, the Air Force moved away from the idea of awarding an SBIR phase III contract to NVC. Instead, the Air Force decided to use an open-bid process. As part of that process, the Air Force sent NVC’s prototypes to Insight. NVC, Insight, and one other company submitted proposals to commercially develop PNVGs, and the Air Force ultimately awarded a contract to Insight. NVC sued the Air Force, alleging contractual and other claims based on the Air Force’s decision not to award a SBIR phase III contract to NVC and its sharing of prototypes with Insight. The Air Force filed motions to dismiss or for summary judgment on NVC’s claims.