Future Combat Systems Program

Brief

BAE Systems was a major subcontractor on the U.S. Army’s Future Combat Systems (FCS) program, which began in 2003 and was terminated for convenience in 2009. BAE Systems had two subcontracts with the prime contractor, and nearly 200 subcontracts and purchase orders with over 75 suppliers that were also terminated as a result of the termination for convenience.

What we did

HKA was retained by BAE Systems personnel to assist in the review and settlement of its lower-tier subcontractor TSPs. HKA consultants reviewed over 100 lower-tier subcontractor TSPs with values ranging from hundreds of dollars to over US$100 million.

We developed cost analyses, negotiated with the subcontractors, and presented recommendations to the prime contractor and the Government’s Termination Contracting Officer (TCO).

BAE Systems also retained HKA to perform a rebuttal of the DCAA audit of BAE Systems’ TSP. HKA reviewed DCAA’s audit, gathered supporting documentation for the costs on a transaction-level basis for over 2,000 transactions, and authored two expert reports summarizing our opinions on the DCAA audit.

Outcomes

BAE Systems successfully settled all of its lower-tier subcontractors. The prime contractor and the TCO also concurred with 100% of HKA’s positions on the DCAA audit of BAE Systems’ TSP, which led to the negotiation of a fair and reasonable settlement of the TSP for BAE Systems. HKA’s detailed expert analysis were critical to BAE Systems’ successful negotiations with the prime contractor and the TCO.