Mon, May 07, 2007
Someone Owes Uncle Sam A LOT Of Moolah
The US Court of Federal Claims has upheld the Navy's termination
for default of a contract with McDonnell Douglas and General
Dynamics for the A-12 stealth attack aircraft.
In 1988, the Navy awarded the $4 billion fixed-price contract
for development of the A-12, which was to be a stealthy,
carrier-based attack aircraft. The program encountered serious
technical difficulties, and in 1991, then Secretary of Defense Dick
Cheney terminated the A-12 program because it was substantially
over budget and behind schedule. The Navy subsequently terminated
the contract for default, without ever receiving a single
plane.
The
contractors challenged the termination, resulting in 16 years of
litigation. The court originally overturned the termination,
holding that then Secretary of Defense Cheney had wrongfully
terminated the A-12 program over the Navy's objections. Following
two appeals, the court held that the Navy had properly terminated
the contract for default.
"We are gratified by the court's decision, which explains why
the Navy was within its rights to terminate the contract for
default and protect the American taxpayer's interests, and
hopefully will bring this long litigation closer to resolution,"
said Deputy Assistant Attorney General Michael F. Hertz.
Unless the judgement is overturned on appeal, the contractors
will be required to return to the government payments of about
$1.35 billion, plus interest, a sum which currently exceeds $2.6
billion.
More News
DETRESFA (Distress Phrase) The code word used to designate an emergency phase wherein there is reasonable certainty that an aircraft and its occupants are threatened by grave and i>[...]
"General aviation is at the forefront of developing and introducing innovative technologies that will transform the entire aviation industry..." Source: Kyle Martin, Vice President>[...]
Direct Straight line flight between two navigational aids, fixes, points, or any combination thereof. When used by pilots in describing off-airway routes, points defining direct ro>[...]
Aero Linx: Women in Corporate Aviation Women in Corporate Aviation support individuals seeking career advancement and professional development in the business aviation industry. Me>[...]
“We would like to thank the many volunteers that help throughout the year to pull off the event, as well as the several reviewers, judges, and SURVICE staff that provide team>[...]