Bay Shore Contractor Reaches Settlement With Defense Department

BAY SHORE, NY — A Bay Shore contracting company has reached a settlement with the country's Defense Logistics Agency, after a dispute over alleged delays in its delivery of parts, Newsday said.

Defense Logics Agency (DLA), the nation’s combat logistics support agency which provides materials for federal, state and local agencies, previously depended on Long Island's Precision Metals, to deliver parts.

However, the agency later claimed that Precision Metals Corp's deliveries were often delayed, and sought to exclude the contractor.

The Long Island contractor said it would lay off 11 of its 42 employees, if it were excluded. Precision Metals Corp, located at 221 Skip Ln, said that deliveries were delayed because of faulty technical specifications, Newsday said.

The Defense Department took a long time to respond to their requests for support and administrative services that could have resolved the issues, according to court documents.

However, in July, U.S. District Court Judge Joanna Seybert granted a temporary restraining order to Precision Metals, allowing it to continue operations and forestalling the company's contingency plan to lay off workers.

On Oct. 6, DLA agreed that Precision Metals would achieve on-time delivery of 75 percent of its government contracts by the end of it's first, six-month period. The accurate deliveries would then increase to 85 percent by the end of a three-year period.

Precision, founded in 1987, said in court papers that it has delivered more than 290,000 parts.