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Court Ruling Protects Proprietary Information

A federal appeals court has limited the government’s authority to publicly release information about contractors.

The two cases involved news media requests for documents under the Freedom of Information Act. The U.S Court of Appeals for the District of Columbia said the Defense Contract Management Agency did not adequately justify its decision to release the documents over the objections of the companies involved.

Two news organizations in Hartford, CT, separately filed FOIA requests for information relating to contracts held by Sikorsky and Pratt & Whitney. Both companies argued that the documents contained proprietary information and the disclosure would harm the companies’ competitive positions. FOIA exempts such information from public disclosure.

DCMA disagreed. An agency official said the disclosure would cause the companies embarrassment, not harm.

Two federal district judges upheld DCMA’s actions, but the appeals court overturned those decisions.

“The documents, even as redacted by DCMA, appear to reveal details about Sikorsky’s and Pratt’s proprietary manufacturing and quality control processes,” Circuit Judge Karen LeCraft Henderson wrote. “…In other words, the documents describe, in part, how the contractors build and inspect helicopters and/or engines.”

The judge said DCMA did not adequately explain its rationale for releasing the material. When “a contractor pinpoints by letter and affidavit technical information it believes that its competitors can use in their own operations, the agency must explain why substantial competitive harm is not likely to result if the information is disclosed.” She wrote. “A naked conclusion…is not enough.”

Judges Judith Rogers and Janice Rogers Brown joined in the opinion, which was first reported by Federal Computer Week.


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