Boeing, General Dynamics prevail in Supreme Court

Unanimous decision goes against federal government

Boeing Co. and General Dynamics Corp. have won a Supreme Court decision that will keep some $3 billion in their coffers rather than requiring them to pay it to the federal government, the Wall Street Journal reports today.

The court, in a unanimous ruling, said a key issue in the two-decade-old contract battle couldn't be litigated because it involved state secrets that can't be aired in court. The companies and the Defense Department have been fighting since 1991, when the government canceled a $4.8 billion contract to build a Navy stealth fighter jet and demanded that the companies repay roughly $1.35 billion they already had received plus interest, a total of about $3 billion.

The defense contractors countered that the government had superior technical knowledge needed to build the aircraft but refused to share it with them. The case now returns to lower courts, according to the Journal.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here


  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Our databases track awards back to 2013. Read More

  • Navigating the trends and issues of 2016 Nick Wakeman

    In our latest WT Insider Report, we pull together our best advice, insights and reporting on the trends and issues that will shape the market in 2016 and beyond. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.