A reader sent this today. After telling everyone numerous times that many investigations are still being worked, and lawsuits waiting to be filed, perhaps we are now seeing some of these be released to the view of the public. It is still the tip of the ice berg. It is just beginning to snowball. Either Boeing has stepped up their unethical activities and gotten sloppy, or maybe oversight is beginning to recover after the death of the Justice Dept. (and the inability to get anything prosecuted) during the last administration and do their jobs! I hope it is the latter. If so, three cheers for an enlivened group of federal oversight investigators and agents! -GFS
Boeing and General Dynamics to pay billions on A-12 Program
It just doesn’t stop. Is any DoD oversight agency responsible for defense contractors doing their job?
Boeing, General Dynamics to pay billions to settle stealth aircraft dispute
Story Published: Jun 3, 2009 at 9:11 AM PDT
Story Updated: Jun 3, 2009 at 9:11 AM PDT
By Associated Press
WASHINGTON (AP) – Boeing Co. and General Dynamics Corp. must pay the government $2.8 billion to settle a nearly two-decade dispute over the cancellation of a Navy contract for a stealth aircraft, the U.S. Court of Appeals for the Federal Circuit ruled Tuesday.
The Navy was justified in 1991 when it opted to terminate the $4 billion contract with McDonnell Douglas and General Dynamics to build a stealth aircraft, the court said.
Chicago-based Boeing, which acquired McDonnell Douglas in 1997, said it will appeal the ruling.
The aircraft project was ended for being substantially over budget and behind schedule, according to the Justice Department. Both contractors were under a fixed-price contract to develop the A-12, a carrier-based attack aircraft.
But because of serious technical difficulties, the Pentagon refused to approve additional funding, leading the Navy to cancel the program.
In a 29-page opinion, the court explained the contractor’s performance history showed that “the government was justifiably insecure about the contract’s timely completion.”
Both contractors are now required to repay the government more than $1.35 billion, plus interest of $1.45 billion.
Boeing had questioned whether the government owed money to both companies for work in progress when the contract was terminated.
In a statement, Boeing called for an immediate appeal of the court’s ruling. A spokesman for Falls Church, Va.-based General Dynamics was not immediately available Tuesday evening.