Contract performance

(1439) Lockheed Martin, 03-2 BCA [paragraph] 32,408, at 160,387.

(1440) Id. at 160,388 (discussing and citing FAR subpart 17.4).

(1441) Id. (citing FAR section 17.401). The decision sets forth the FAR's four prerequisites for use of this contracting technique: (1) The leader company has the necessary production know-how and is able to furnish required assistance to the follower(s); (2) No other source can meet the Government's requirements without the assistance of a leader company; (3) The assistance required of the leader company is limited to that which is essential to enable the follower(s) to produce the items; and (4) Its use is authorized in accordance with agency procedures. Id. (citing FAR section 17.402).

(1442) Id. at 160,390-91.

(1443) Id. at 160,393 and 160,395.

(1444) Phase I was completed in June 1989. Id. at 160,396. NAVSEA terminated the contract on 21 June 1990. Id. at 160,397.

(1445) Id.

(1446) Id. at 160,398.

(1447) Id. at 160,410.

(1448) Id. at 160,402.

(1449) Id. at 160,410-11.

(1450) See FAR, supra note 20, subpt. 49.3, Additional Principles for Cost Reimbursement Contracts Terminated for Convenience, which includes section 49.305-1(a).

(1451) Id. at 49.305-1.

(1452) Lockheed Martin, 03-2 BCA [paragraph] 32,408, at 160,411.

(1453) Id. (quoting the clause at FAR section 52.249-6(g)(4)(i) (May 1986)).

(1454) Id.

(1455) In fact, Lockheed only wanted to exclude the profit-limiting portion of section 49.305-1. Id.

(1456) Id. at 160,411-12.

(1457) Id. at 160,412.

(1458) ASBCA No. 28480, 86-2 BCA [paragraph] 18,919.

(1459) Lockheed Martin, 03-2 BCA [paragraph] 32,408 at 160,412 (quoting Kollmorgen Corp., ASBCA No. 28480, 86-2 BCA [paragraph] 18,919, at 95,411).

(1460) Id. at 160,412-13.

(1461) Id. at 160,413. The board denied reconsideration in Lockheed Martin Corp., Naval Elec. and Surveillance Systems-Surface Systems, ASBCA Nos. 53032, 54064, 04-1 BCA [paragraph] 32,559, 2004 ASBCA LEXIS 16 (Mar. 10, 2004).

(1462) See DOD Cancels Comanche Helicopter Program, 46 GOV'T CONTRACTOR 8, [paragraph] 81 (Feb. 25, 2004).

(1463) Id.

(1464) U.S. Army Still Counting Cost of RAH-66, DEF. NEWS, Aug. 2, 2004 at 20.

(1465) Claude M. Bolton, J., the Army's Assistant Secretary for Acquisition, Logistics, and Technology, estimated between $480 million and $650 million. An unnamed former Army aviation official was quoted in Defense News as saying, "Mark my words, after it's all said and done, it will be at least $2.5 billion." Id.

(1466) ASBCA Nos. 52462, 52463, 04-2 BCA [paragraph] 32,647.

(1467) Id. at 161,554.

(1468) Id. at 161,556.

(1469) Id.

(1470) Id. at 161,557.

(1471) Id.

(1472) Id. at 161,558.

(1473) Id. at 161,564.

(1474) Id.

(1475) Id.

(1476) Id.

(1477) Id. at 161,564-65. The board rejected Maggie's other bases for recovery: ordering less than the estimates did not constitute a constructive change, nor a cardinal change; nor did the government act in bad faith. Id. at 161,565-66.

(1478) See Ralph C. Nash & John Cibinic, Postscript: Late Convenience Termination Settlement Proposals, 18 NASH & CIBINIC REP. 4 [paragraph] 13 (2004).