T-45A Aircraft

Brief

A major aerospace manufacturing corporation signed a full-scale engineering and development contract with the U.S. Navy to design, test, and manufacture the T-45A aircraft – a carrier-suitable version of the British Royal Air Force Hawk T1 jet trainer. As the project matured, the Navy ordered a series of modifications to the base contract design, resulting in significant project delays and cost increases for the manufacturer. The manufacturer sought to recover these increased costs and filed a claim with the Navy, which the Navy rejected. The manufacturer appealed the Navy’s decision before the Armed Services Board of Contract Appeals.

What we did

HKA was retained by counsel for the aerospace manufacturer to assist with developing a detailed claim and supporting materials. We provided an in-depth analysis of company records to reconstruct job costs. HKA also thoroughly evaluated program performance activities to determine the durations and causes of delays to both the testing and manufacturing schedules. The relevant schedule delays were then used to calculate the manufacturer’s increased costs due to extended overhead, prolonged test support, sustained engineering, and other activities impacted by delays attributable to the Navy.

Outcomes

In an agreement the aerospace manufacturer described as “fair and equitable,” a settlement was reached that recovered more than US$200 million in costs and averted further litigation. HKA’s expert analysis and our communication of this analysis in an understandable and compelling way were critical in effecting the outcome of negotiations between the aerospace manufacturing corporation and the Navy.