The Boeing Company

Material Facts

• Boeing submitted a Cost Accounting Standards Disclosure Statement on 31 October 2000 notifying DCMA of revised accounting practices for 2001 and later years.
• The revised accounting practices became effective on 1 January 2001.
• Boeing submitted an analysis of the accounting change's cost impact on Department of Defense contracts.
• DCAA audited the analysis and issued its final audit report to DCMA on 14 June 2002.
• The audit report stated that substantially all of the increased government costs occurred in 2001.
• On 17 September 2003, the contracting officer determined that the accounting change was not desirable to the government and proposed a cost adjustment.
• The 17 September 2003 letter invited Boeing to reach agreement and stated that the contracting officer was prepared to make a unilateral determination if agreement could not be reached.
• Boeing disputed the government's conclusions and continued discussions concerning the accounting revision costs through 2010.
• The government issued its final decision on 25 October 2010, allocating the alleged costs between Chinook foreign military sales contracts and V-22 spare-parts contracts.
• Boeing appealed the final decision on 21 January 2011.

Parties

Appellant

The Boeing Company

Respondent Agency

Defense Contract Management Agency

Contracting Agency

Defense Contract Management Agency

Contract Number

N00383-97-G-002N; DAAH23-00-C-0044