Opinion ID: 208635
Heading Depth: 2
Heading Rank: 2

Heading: Modification of the A-12 contract

Text: From the start, the contractors encountered difficulties in performing the contract, including meeting the contract schedule and keeping the aircraft weight within specifications. McDonnell Douglas XI I, 323 F.3d at 1011. Two weeks before the first flight date, the contractors reported to the Navy that the projected first flight date would be July-September 1991, instead of June 1990 as originally agreed, and the remainder of the contract work would be delayed a corresponding twelve to fourteen months. They also predicted that the cost of completing the contract would exceed the ceiling price so substantially that it would be unacceptable to the contractors. The contractors asserted that a fundamental problem with the FSD contract was its fixed-price structure and proposed that the contract be modified. At the end of June 1990, the contractors missed the first flight date. The Navy did not terminate the contract. Instead, the contracting officer sent a letter to the contractors in July, expressing serious concern regarding the deficient performance under the contract. He warned that the contractors' failure to meet the first flight date could jeopardize performance of the entire [contract] effort. He also asked for the contractors' plan to meet the rest of the original schedule as well as their proposal for contract revision. As the parties failed to reach an agreement, on August 17, 1990, the Navy unilaterally issued a contract modification, P00046, which revised the prototype aircraft delivery dates but left Lot I and later milestones intact. The delivery schedules are: --------------------------------------------------------------------------------------- Aircraft Number Original Delivery Date P00046 Modified Delivery Date --------------------------------------------------------------------------------------- 1 June 1990 December 1991 --------------------------------------------------------------------------------------- 2 July 1990 February 1992 --------------------------------------------------------------------------------------- 3 August 1990 June 1992 --------------------------------------------------------------------------------------- Prototype 4 September 1990 August 1992 --------------------------------------------------------------------------------------- 5 October 1990 September 1992 --------------------------------------------------------------------------------------- 6 November 1990 November 1992 --------------------------------------------------------------------------------------- 7 December 1990 December 1992 --------------------------------------------------------------------------------------- 8 January 1991 February 1993 --------------------------------------------------------------------------------------- 9 June 1991 --------------------------------------------------------------------------------------- 10 August 1991 --------------------------------------------------------------------------------------- 11 October 1991 --------------------------------------------------------------------------------------- Lot 1 12 December 1991 --------------------------------------------------------------------------------------- 13 March 1992 --------------------------------------------------------------------------------------- 14 May 1992 ---------------------------------------------------------------------------------------