Naval Aviation:

Events Surrounding the Navy's A-12 Aircraft Program

NSIAD-92-190FS: Published: May 12, 1992. Publicly Released: Jun 11, 1992.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO provided information on: (1) significant events that affected the Navy A-12 Aircraft Program; and (2) A-12 contractor payments.

GAO found that: (1) in June 1990, the A-12 contractor disclosed to the Navy that the A-12 first-flight schedule would slip significantly, full-scale development costs would overrun the contract ceiling by an amount that the contractors could not absorb, and they could not meet certain performance specifications; (2) in January 1991, the Navy terminated the A-12 contract for default due to the difficulties the contractors had in executing the contract; (3) at termination, the government had made $2.68 billion in progress payments to the contractors, but the Navy had accepted only $1.33 billion worth of work from the contractors; (4) the government agreed to the contractors request to defer repayment of $1.35 billion in progress payments for A-12 contract work that the Navy had not accepted at the time of contract termination; (5) in June 1991, the A-12 contractors filed a lawsuit in U.S. Claims Court requesting that the court find that the Navy breached the contract and terminated the contract for the convenience of the government rather than for default; (6) although the lawsuit is still pending, if the court finds that the termination was for the convenience of the government, the contractors may not be required to return the $1.35 billion in progress payments; (7) the Navy paid one of the contractors $1.4 billion for work on the A-12 full-scale development contract and $25.6 million in additional payments for work performed under a separate basic ordering agreement; and (8) the Navy paid the second contractor about $1.3 billion for its work on the A-12 full-scale development contract.

Sep 22, 2016

Sep 21, 2016

Sep 19, 2016

Sep 12, 2016

Sep 8, 2016

Sep 7, 2016

Sep 6, 2016

Aug 25, 2016

Looking for more? Browse all our products here