Northrop Grumman Systems Corporation Space Systems Division

Material Facts

• The Army and Aerojet entered into the LRP-2 contract in February 1997 for production of SADARM projectiles under a firm-fixed-price arrangement.
• The contract incorporated FAR 52.233-1 and FAR 52.243-1 and included an option for additional projectiles.
• The government’s Picatinny SADARM program office lacked authority to control the amount or purposes of higher-level funding, and several program officials lacked contracting officer authority.
• Reliability testing produced poor results, and the government withheld or restricted FY 1999 funding pending resolution of test problems.
• Modification No. P00017 authorized an undefinitized contract action for additional projectiles, established a $29,300,000 ceiling, and limited expenditures before definitization.
• At the 17 September 1999 meeting, contractor representatives proposed a package involving FY 1998 and FY 1999 funds and wrote the terms on a white board.
• The government’s contracting officer stated that the government could not guarantee or obligate FY 1999 funds and later issued unilateral Modification No. P00032 for the FY 1998 portion.
• Only contractor representatives signed the white board; the contracting officer did not sign it, and the Board found that the government rejected the proposed inseparable funding terms.
• Aerojet and Alliant entered into a Comprehensive Settlement Agreement without government knowledge or direction, and Aerojet acquired and moved Alliant’s production line.
• Aerojet submitted a proposal seeking $651,515 for the Alliant transition and separately sought REA preparation costs.
• DCAA audited Aerojet’s proposal to definitize Modification No. P00017 and questioned certain proposed costs.
• The REA was prepared after contract performance was completed and was materially similar to the later claim.

Parties

Appellant

Northrop Grumman Systems Corporation Space Systems Division

Respondent Agency

Department of the Army

Contracting Agency

Department of the Army

Contract Number

DAAE30-97-C-1005