February 03, 2014
Credit: U.S. Navy Concept
After more than two decades and numerous attempts at a settlement, the U.S. government finally agreed to accept $400 million from General Dynamics and Boeing in the dispute over the Navy's cancellation of the $4.8 billion A-12 Avenger II program.
The settlement is a fraction of what the government sought when the lawsuit began, demanding $1.3 billion in restitution ($2.2 billion in 2014 dollars) for money spent on the stealthy carrier-based aircraft program that had yet to deliver an aircraft. And it is even smaller when compared with an agreement for $2.9 billion that was nearly negotiated in 2003.
On Jan. 24, the U.S. Court of Federal Claims dismissed the case, as requested by the Navy and contractors involved. Late last year, the government reached an agreement with Boeing and General Dynamics.
The Navy will receive three EA-18G Growlers that will be delivered on top of the 21 Boeing aircraft that were funded by Congress for fiscal 2014 and are expected to be delivered in 2016, according to the Navy.
General Dynamics will provide $198 million in credits to the Navy toward the design, construction and delivery portions of the Zumwalt-class DDG-1000 destroyer.
“We are closing a 23-year-long chapter in the annals of naval aviation and further strengthening, through the contractors' in-kind payment, the Navy's capabilities and capacities,” said Navy Secretary Ray Mabus.
“The litigation was protracted and difficult, but it saved the Navy billions of dollars. We thank the Justice Department for its superb representation over these many years.”