Ruling Favors General Dynamics, Boeing

A federal claims court judge ruled that Falls Church, Va.-based General Dynamics Corp. and Seattle-based Boeing Co. are entitled to $1.2 billion from the government for the improper 1991 termination of the Navy A-12 stealth attack aircraft. Judge Robert Hodges outlined in a recently released 52-page final judgment that a combined $3.8-billion claim the contractor team filed in June 1991 was “reasonable, allocable and allowable.” The contractors had previously been paid $2.6 billion in progress payments for work performed under what was originally a $4.3-billion fixed-price development contract to design the stealth carrier aircraft. McDonnell Douglas was the initial team member. It was acquired by Boeing last year. The Justice Department said it will appeal the case, effectively delaying any payment for years.