The Boeing Company

Material Facts

• The Air Force awarded Boeing five SRAM development and production contracts between 1966 and 1973.
• Boeing awarded Lockheed a development subcontract and four production subcontracts for the SRAM propulsion system.
• The prime contracts and subcontracts contained indemnification provisions concerning unusually hazardous risks, together with notice and insurance provisions.
• Lockheed performed at least part of the subcontract work at its Redlands, California facility.
• TCE and ammonium perchlorate were associated with contamination and pollution at or near the Redlands facility.
• The Water Board issued cleanup and abatement orders concerning the Redlands facility and required remedial measures.
• Third-party environmental and toxic-tort litigation followed, including the Carrillo and Acklin actions and a state CERCLA action.
• Lockheed sent Boeing a written indemnification demand dated 23 May 1997.
• Boeing's counsel stated in January 1998 that Boeing intended to inform its government customer, but Boeing did not thereafter inform the government of Lockheed's demand.
• Lockheed's outside counsel sent an indemnification request to an Air Force attorney dated 29 March 2000.
• Boeing submitted the sponsored claim to the contracting officer on 6 February 2004.
• The record included evidence of deceased witnesses, destroyed documents, and diminished recollections concerning contract formation and the environmental events.

Parties

Appellant

The Boeing Company

Respondent Agency

Air Force

Contracting Agency

Air Force

Contract Number

AF33(657)-16584