Lockheed Martin Aeronautics Company

Material Facts

• The Air Force awarded Lockheed Martin Contract No. FA8625-07-C-6471 for upgrades to 49 government-owned C-5 Galaxy aircraft.
• The contract used mostly fixed-price CLINs for RERP modernization work and included additional O&A work under T&M and later CPFF CLINs.
• The H106 clause required Lockheed Martin to submit work requests for legacy discrepancies and required an equitable adjustment when R3 activity affected cost or schedule.
• Lockheed Martin could not determine the extent of needed legacy repairs before aircraft induction, and additional conditions were discovered as aircraft were opened, inspected, and tested.
• The government approved O&A work after the need was identified during inspections, test phases, and contract performance.
• Modification No. P00178 contained a release concerning C-5 RERP production schedule impacts through November 6, 2012.
• Lockheed Martin's claim alleged that excessive O&A work caused a constructive change and cumulative disruptive impacts to the fixed-price RERP effort.
• Lockheed Martin's claim used a measured-mile analysis comparing an impacted production period with an unimpacted production period.
• The government declined to issue a final decision on the October 15, 2018 claim.
• The government relied on a February 24, 2011 letter and September 2012 delay and disruption meetings to argue that Lockheed Martin knew or should have known the basis of its claim before October 15, 2012.
• The record presented differing evidence concerning whether pre-October 15, 2012 O&A hours included support and production hours while the claim used production hours only.
• The claim included impacts associated with MDRs that took place or were approved after Modification No. P00178.

Parties

Appellant

Lockheed Martin Aeronautics Company

Respondent Agency

Air Force

Contracting Agency

Air Force

Contract Number

FA8625-07-C-6471