Boeing, United Launch Alliance, and DoD To Grapple Over $271 Million

Posted: August 3, 2010 in Boeing, DCAA, DCMA, Defense Industry, Delta IV, EELV, Government and Industry...Together!, Lockheed Martin, Space Launch, ULA, United Launch Alliance

Boeing's Delta IV

Well, this will be interesting. Stand by for some alphabet soup.

First, the Defense Contract Audit Agency (DCAA) says Boeing needs to reimburse $72 million it has already received.

Next, DCAA says the Defense Contract Management Agency (DCMA, not to be confused with DCAA) should notify the joint Boeing-Lockheed Martin venture called the United Launch Alliance (ULA) that there are another $199 million in unallowable costs (that are pending reimbursement) that the government won’t pay.  Got all that?

The work in question was done was for the Air Force as far back as 1998.

Given the complexity of monster-sized programs like EELV, the two main contractors, the joint venture, the who-knows-how-many subs, and the multi-year time frame, unpacking this all had to be–to say the least–a challenging audit to close on.

DCMA is now reviewing DCAA’s audit recommendation and a final decision is planned for November.

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