Electric Boat Corporation

Material Facts

• The Navy and Electric Boat entered into Contract No. N00024-03-C-2101 on August 14, 2003, for construction of six Block II Virginia Class submarines.
• The contract was primarily firm-fixed-price, with some cost-reimbursement line items and cost sharing of costs above or below target cost.
• Clause H-30 provided for a price adjustment when a change in federal law or regulation directly resulted in an increase or decrease in the contractor’s cost of performance.
• Clause H-30 initially was not included among the provisions identified for flow-down to HII, although Electric Boat included the clause in its subcontract with HII.
• OSHA published Subpart P, Fire Protection in Shipyard Employment, which became effective in December 2004.
• Electric Boat submitted a contract change memorandum to the Navy on February 8, 2005, indicating entitlement pursuant to Clause H-30 for the OSHA Subpart P regulation.
• Modification No. P00031 was executed on August 9, 2010, added Clause H-30 to the flow-down provisions, and stated that the omission resulted from an administrative oversight and mutual mistake.
• Electric Boat’s certified CDA claim included both Electric Boat’s and HII’s costs.
• The Navy denied the claim on February 27, 2013.

Parties

Appellant

Electric Boat Corporation

Respondent Agency

Department of the Navy

Contracting Agency

Naval Sea Systems Command

Contract Number

N00024-03-C-2101