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IMMEDIATE RELEASE

Release No: 077-98
February 20, 1998

DEFENSE DEPARTMENT APPEALS COURT DECISION ON A-12 CASE

The government is filing a notice of appeal to the United States Court of Appeals for the Federal Circuit following a decision against it Friday by the United States Court of Federal Claims in the A-12 case.

The case arises from the 1991 termination of a contract between the Navy and General Dynamics and McDonnell Douglas for the development and production of the A-12 carrier-based, stealth attack aircraft. The contract was terminated for default because the contractors were unwilling or unable to perform the contract and admitted as much to the Navy.

The Department of Defense believes that the court's decision in favor of the contractors is wrong and provides unwarranted relief from a failure to produce the aircraft for which the contractors are fully responsible.

The Federal Claims Court decision was fully expected based upon earlier rulings by the trial judge; the government has made clear its belief that those earlier rulings were fundamentally flawed. The court's decision concludes the protracted trial phase of this case and will allow the appellate phase to begin.