Lockheed Martin Aeronautics Company

Material Facts

• The Air Force awarded Lockheed Martin Contract No. FA8625-07-C-6471 to upgrade 49 government-owned C-5 Galaxy aircraft.
• The contract work was performed under mostly fixed-price contract line items.
• Over-and-above repair work was performed on a time-and-materials basis until April 28, 2013, and thereafter on a cost-plus-fixed-fee basis pursuant to Modification P00182.
• The appeal concerns aircraft P-7 through P-27, which were part of Lots 3, 4, and 5.
• The statement of work provided that work required to bring an aircraft to flightworthiness beyond the contract scope would be accomplished under the rapid-repair clause or another mutually agreeable contractual arrangement.
• The H106 clause provided for an equitable adjustment when rapid-repair activity increased or decreased the cost or time required for performance.
• The contract modifications at issue contained releases concerning claims or equitable adjustments arising out of or in connection with the changes effected by the modifications.
• Modification P00301 concerned Lot 6 rapid-repair work, revised H106 and H139 procedures, and funding for CLINs 6019 and 6020; it did not establish manufacturing deficiency report limits for Lots 3, 4, or 5.
• Lockheed Martin alleged that excessive over-and-above work and government inspection practices disrupted the fixed-price modernization work.
• Lockheed Martin’s claim used a measured-mile analysis comparing an impacted production period with an unimpacted production period.
• The contracting officer declined to issue a final decision on Lockheed Martin’s certified claim.

Parties

Appellant

Lockheed Martin Aeronautics Company

Respondent Agency

Air Force

Contracting Agency

Air Force

Contract Number

FA8625-07-C-6471