ARMED SERVICES BOARD OF CONTRACT APPEALS
Appeal of --
Lockheed Martin Corporation
ASBCA No. 53822
Under Contract No. F33657-91-C-0006
APPEARANCES FOR THE APPELLANT:
Terry L. Albertson, Esq.
Linda S. Bruggeman, Esq.
Crowell & Moring
APPEARANCES FOR THE GOVERNMENT:
E. Michael Chiaparas, Esq.
Chief Trial Attorney
Charles W. Goeke, Esq.
Senior Trial Attorney
Defense Contract Management Agency
OPINION BY ADMINISTRATIVE JUDGE PEACOCK
This timely appeal presents the issue of whether the Cost Accounting Standards
(CAS) provisions in the F-22 contract and associated regulations required that contract to
be included in the analysis of cost impacts associated with certain changes in cost
accounting practice implemented in 1993. Only entitlement is before us for decision.
We determine that the F-22 contract as repriced and rephased after implementation of the
changed practices was not an “affected contract.” Therefore, it was not required to be
included in the detailed cost impact study evaluating the cost shifts associated with those
changed practices. Accordingly, we sustain the appeal.
FINDINGS OF FACT
1. The United States Air Force (Air Force) awarded the referenced contract to
Lockheed Corporation, now Lockheed Martin Corporation (appellant or LMC), on
2 August 1991 for engineering and manufacturing development (EMD) of the Air
Force’s next generation air superiority fighter, the F-22. The cost-plus-award-fee
contract (hereinafter sometimes referred to as the F-22 contract) had an estimated value at
award of $9.55 billion with performance scheduled over an eight to nine year period.
(R4, tab 1)
2. Among the clauses incorporated into the F-22 contract by reference were
FAR 52.230-2, COST ACCOUNTING STANDARDS (AUG 1992) (hereinafter the CAS clause)
and FAR 52.230-4, ADMINISTRATION OF COST ACCOUNTING STANDARDS (SEP 1987)
(hereinafter the Administration of CAS clause) (R4, tab 1, see Append