Lockheed Martin Corporation

January 7, 2021Judge Sweet

DismissedContract InterpretationCDA JurisdictionDCAA InvolvedDCMA Involved

Lockheed Martin Corporation sought a declaration concerning whether the Fly America Act and FAR 52.247-63 apply to indirect personnel or indirect international transportation costs. The Board declined to grant declaratory relief because there was no live dispute, granted the government's motion to dismiss, and dismissed the appeal without prejudice.

Material Facts

The parties executed a 1997 memorandum of understanding stating that the Fly America Act applied only to direct personnel performing direct work on covered contracts and did not apply to indirect personnel or indirect travel.
The CACO's 2019 withdrawal letter stated that the memorandum of understanding misinterpreted FAR 52.247-63.
The government had not denied payment or disallowed any indirect costs of international transportation based on noncompliance with the Fly America Act and FAR 52.247-63.
Lockheed Martin had not changed its billing, accounting, or international air transportation practices as a result of the withdrawal letter.
Lockheed Martin did not perceive the withdrawal letter as mandating action to align its accounting or international air transportation practices with the government's interpretation.
The CACO issued a final decision interpreting the Fly America Act and FAR 52.247-63 as applying to indirect costs of international transportation.

Parties

Appellant: Lockheed Martin Corporation
Respondent Agency: Defense Contract Management Agency
Contract Number: N00019-11-C-0083 et al.

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