The Use of Management Science to Support a Multimillion Dollar Precedent-Setting Government Contract Litigation

This paper describes the analysis of relevant data presented by this writer at a hearing conducted before the Armed Services Board of Contract Appeals involving an appeal of the Ingalls Shipbuilding Division of Litton Industries. The appeal concerned contracts awarded to Litton by the U.S. Navy to build four nuclear submarines and the subsequent impact of changes and delays to these contracts on other shipyard operations. Behind this appeal is the fundamental question of whether or not the government is required to assume liability and reimburse the contractor for additional costs incurred due to “ripple effects” of contract changes on other shipyard operations.