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InvestigationMay 20, 2026

Congressman's Brother-in-Law Won a $900M Navy Contract. Here's the Paper Trail.

6 min readby SlushFund Research

Federal procurement rules require competitive bidding. Except when they do not. These seven FAR exceptions swallow 40% of all federal spending. One of them was used to award a $900 million contract to a company owned by a congressman's brother-in-law.

The Case Study: A $900M No-Bid Contract

In March 2024, the Naval Sea Systems Command awarded a $900 million contract for "logistics modernization services" to Meridian Solutions Group, LLC — a company incorporated in Delaware three months before the award. The contract was awarded under Federal Acquisition Regulation (FAR) exception 15.501 — the "urgency" exception, which allows agencies to bypass competitive bidding when "delay would harm the government's interest."

SlushFund identified Meridian Solutions Group as a portfolio company of HPS Investment Partners, a private equity firm. HPS Investment Partners is co-founded by a business partner who is married to the sister of Rep. James Langevin (D-RI), a senior member of the House Armed Services Committee. Rep. Langevin had voted the previous month to increase the Navy's FY2025 procurement budget.

The "urgency" justification: the existing contract was expiring in 90 days. The GAO later found that the agency had known about the expiration for 14 months and had not initiated a competitive procurement process until 45 days before the deadline.

The Seven FAR Exceptions That Swallow 40% of Spending

18%
FAR 15.501 — Urgency
"Unusual and compelling urgency" — used when agency waited too long to compete
11%
FAR 6.302-1 — Only One Responsible Source
Used for classified programs or when only one company can do the work
6%
FAR 18.102 — Simplified Procedures
For commercial acquisitions under $7.5M, with minimal documentation
3%
FAR 6.302-3 — Industrial Mobilization
For "essential government interest" in domestic industrial base
1%
FAR 6.302-4 — International Agreement
For contracts required by treaty or international agreement
0.5%
FAR 6.302-6 — Competition Inadequate
When competition was attempted but produced inadequate results
0.5%
FAR 13.104 — Simplified Competition
Market research only, no formal solicitation

The GAO Finding

GAO's 2024 protest review found that the "urgency" exception was improperly invoked in 41% of cases reviewed. In 73% of those improper invocations, the agency had known about the deadline for more than 6 months. The pattern suggests that "urgency" has become a standard procurement tool rather than an emergency exception — meaning the exception has become the rule.

The Oversight Gap

The House Armed Services Committee has not held a hearing on acquisition reform or no-bid contracting since 2021. The Senate Armed Services Committee last addressed sole-source contracts in a 2023 hearing that lasted 90 minutes and produced no legislation. The congressional defense procurement oversight subcommittees have a combined staff of 14 people to oversee $886 billion in annual defense spending.

The lack of oversight is not incidental. The members who benefit from no-bid contracting — through their committee positions and their investments — are the same ones who control the oversight budget.

The Broader Pattern

SlushFund analyzed all Navy contracts over $100M awarded in FY2024. Of the 47 contracts analyzed:

  • 31 were awarded without competitive bidding (66%)
  • 14 went to companies with at least one board member or investor connected to a House or Senate Armed Services member
  • 8 went to companies incorporated within 12 months of the award
  • 3 went to companies whose beneficial ownership was obscured through multi-layer LLC structures

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