Point Blank said it has been selling bullet-resistant vests through contracts to the U.S. military since 1999 and had submitted confidential information about Savannah Luggage to the military. The company alleges Norwood, while with the military, had access to that information and also knew the Army soon would be asking manufacturers, including Point Blank and Specialty Defense, to submit designs for the next generation of tactical vests.

After joining Armor Holdings in September 2006, Norwood approached Savannah Luggage to ask them to cut their ties with Point Blank and enter an exclusive agreement with Specialty Defense, which Savannah Luggage did, Point Blank said.

The Army asked Point Blank and Specialty Defense for bids to make 230,000 vests. Point Blank said it learned of Savannah Luggage's agreement with Specialty Defense while it was preparing its bid. The exclusive agreement "directly impacted our ability to produce and compete effectively," said Glenn Wiener of Point Blank Solutions, the parent company of Point Blank Body Armor.

Point Blank said its other suppliers were more expensive and couldn't meet the same timeline Savannah could have met. In May 2007, the Army awarded Point Blank about one-third of the $165 million contract and the rest to Specialty Defense. Point Blank said its bid price of $703 per vest was about $20 less than Specialty Defense's price, but that the Army said its decision was based on production schedules the two companies proposed.

"It is our claim that had Specialty not interfered with our business relationship with Savannah Luggage, our company would have been able to produce more vests earlier and would have been awarded a greater percentage of the contract," Wiener said. Historically, Point Blank was the majority supplier for the soft Body Armor currently worn by soldiers, he said.

"While our company has questioned our percentage of the contract given past performance, it was not until recently that we learned of Col. Norwood and BAE's actions and as such have taken the necessary action to protect our company and our stakeholders," Wiener said.

Jessica Pantages, a spokeswoman for BAE Systems, said Specialty Defense had a relationship with Savannah Luggage before BAE acquired the company.

"[Savannah Luggage is] a pretty big supplier within the industry," Pantages said. "A lot of different companies had a relationship with them."

In an e-mailed statement, BAE Systems said, "We believe this lawsuit is without merit. We will be defending ourselves against this lawsuit and look forward to complete exoneration in this matter."

Wiener said BAE Systems has yet to respond to the suit, which is in the early stages, but that Point Blank expects BAE will respond "shortly." Point Blank hasn't yet specified the amount of damages it's seeking.

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