Raytheon Missile Systems

October 11, 2011Judge Clarke

Sustained / Appellant PrevailedContract Changes / Constructive ChangesDelay / Disruption / Suspension

Raytheon Missile Systems appealed the denial of a claim arising from increased JP-10 fuel costs under a firm-fixed-price Navy contract. The Board denied the Navy's motion for summary judgment because disputed material facts concerned the relationship between the Navy and DLA-Energy, the source of the fuel-price increase, and potential constructive change and non-interference theories.

Material Facts

Contract No. N00019-04-C-0569 was a firm-fixed-price contract.
The contract did not contain an economic price adjustment clause.
Raytheon was required to use JP-10 fuel in performing the contract.
DLA-Energy was identified as the sole source of JP-10 fuel available to Raytheon.
Raytheon experienced a nearly 80% JP-10 price increase in fiscal years 2007 through 2010.
Raytheon attributed the price increase to a DLA-Energy corporate decision to construct a Defense Fuels Support Point specifically for JP-10, financed by an increase in the price of JP-10.
Raytheon asserted that construction of the Defense Fuels Support Point supported NAVAIR's programs.

Parties

Appellant: Raytheon Missile Systems
Respondent Agency: Navy
Contracting Agency: Naval Air Systems Command (NAVAIR)
Contract Number: N00019-04-C-0569

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