Government Says Repayment’s Late; It Might Have To Litigate

Posted: September 29, 2010 in Uncategorized
Tags: , , , , ,

What, if anything is wrong with this picture as reported by the AP?

The Supreme Court is getting involved in the longstanding dispute between the Pentagon and two contractors contesting the government’s demand for $3 billion over the Navy’s ill-fated A-12 Avenger attack plane.

The “two contractors” are Boeing and General Dynamics.  The “longstanding dispute” part is the A-12 program which was canceled in 1991.

The government is seeking repayment of $1.35 billion, plus more than $2.5 billion in accumulated interest, arguing that the companies failed to meet the terms of the contract.

What made the A-12 “ill-fated”?

The A-12, designed with stealth technology to hide it from radar, was more than 18 months behind schedule and at least $1 billion over budget when it was canceled. The government and the contractors dispute who was responsible for the delays and overages.

Almost 20 years after the fact the issue is not resolved.  Not that I have anything against lawyers, but it does make me wonder what the fees of carrying this issue for 20 years might be.  Something less than $3.85 billion, I suppose.

A federal appeals court has already sided with the government on this.

FWIW, does General Dynamics still make airplanes?


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