The Boeing Company

Material Facts

• Boeing implemented three unilateral financially significant changes to its established cost accounting practices at its Philadelphia segment effective January 1, 2005.
• Boeing implemented six unilateral financially significant changes to its established cost accounting practices at its El Segundo segment effective January 1, 2005.
• The changes at both segments were documented in revised CASB Disclosure Statements.
• The cost impacts were calculated on affected CAS-covered contracts and subcontracts at each segment.
• All contracts and subcontracts used to calculate the impacts included the FAR 52.230-2 Cost Accounting Standards clause.
• All contracts and subcontracts used to calculate the impacts were entered into before January 1, 2005.
• Before April 8, 2005, DCMC and DCAA manuals stated that several accounting changes within a segment could be combined for offset purposes if they had the same effective date.
• FAR Part 30 was amended effective April 8, 2005, to add Section 30.606 addressing resolution of cost impacts.
• The Philadelphia contracting officer's November 3, 2010 memorandum stated that pre-2005 practice was to consider and net all accounting changes together in determining whether the government paid increased costs in the aggregate.
• The Philadelphia contracting officer issued a final decision dated December 9, 2010, and the El Segundo contracting officer issued a final decision dated December 14, 2010.

Parties

Appellant

The Boeing Company

Respondent Agency

Defense Contract Management Agency

Contracting Agency

Defense Contract Management Agency

Contract Number

W911 W6-05-2-0006; FA8808-04-C-0022