The Boeing Company

Material Facts

• Contract No. F34601-97-C-0211 was an incrementally funded cost-plus-award-fee contract for engineering assignments ordered by the government.
• The contract incorporated FAR 52.249-6 and FAR 52.232-22 and included Special Contract Requirements clause H-841 addressing funding of individual engineering assignments.
• Modification No. P00112 added the KC-10 GATM assignment, with a specified completion date of 30 April 2003.
• The government and Boeing later extended the assignment and increased its estimated cost, but the parties did not conclude an agreement on a new estimate at completion or schedule before termination.
• The PCO issued a stop-work order on 10 March 2004 and terminated the KC-10 GATM assignment for convenience effective 2 April 2004.
• Boeing terminated the Honeywell subcontract for convenience, and Honeywell submitted a subcontract termination proposal and request for equitable adjustment.
• The Honeywell settlement agreement provided for a net payment to Honeywell and was subject to TCO approval.
• Boeing submitted the Honeywell settlement agreement as part of its certified termination settlement proposal to DCAA for audit.
• The TCO refused to ratify the Honeywell settlement agreement except for a limited amount and later issued a final decision denying ratification of all but a portion of the agreement.
• Before Boeing entered into the Honeywell settlement agreement, the government denied three requests for additional allotted funds and advised Boeing that the Limitation of Funds clause applied.

Parties

Appellant

The Boeing Company

Contract Number

F34601-97-C-0211