Electric Boat Corporation

Material Facts

• The contract was primarily firm-fixed-price, with some cost-reimbursement line items and cost sharing for costs above or below target cost.
• The contract covered construction of six Block II Virginia Class submarines.
• Huntington Ingalls, Inc. was Electric Boat's subcontractor.
• OSHA Subpart P modified fire-watch requirements for hot work and became effective on December 14, 2004.
• HII developed its estimated cost impact using its 2005 Labor Resources Plan as a baseline and department-by-department estimates of fire-watch work before and after Subpart P.
• HII's executive responsible for cost and financing issues testified that separately accounting for Subpart P costs would be impractical and that measuring ancillary fire-watch costs would be nearly impossible.
• Electric Boat's cost-estimating expert opined that HII's methodology was based on information from supervisors familiar with HII's practices before and after Subpart P.
• The Navy's Technical Advisory Report recommended compensation for an increase of 13,548 direct labor hours resulting from Subpart P.
• Navy witnesses testified that OSHA Subpart P had some impact on Electric Boat and HII.
• The contract did not contain FAR 52.243-6, Change Order Accounting.

Parties

Appellant

Electric Boat Corporation

Respondent Agency

Department of the Navy

Contracting Agency

Department of the Navy

Contract Number

N00024-03-C-2101