Free Response to Motion - District Court of Federal Claims - federal

Case 1:05-cv-00448-NBF

Document 52-2

Filed 05/22/2007

Page 1 of 5

Terence Murphy
Washington i DC

December 14 i 2006
Page i

IN THE UNITED STATES COURT OF FEDERA CLAIMS

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RAYTHEON CORPORATION,

Plaintiff,
v.
UNITED STATES OF AMERICA,

No. 05-448C

Defendant.
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Washington, D. C .
Thursday, December 14, 2006

Deposition of TERENCE MUPHY, a witness herein,
called for examination by counsel for Defendant in the

above-entitled matter, pursuant to notice, the witness being duly sworn by DENNIS A. DINKEL, a Notary Public in and for
the District of Columbia, taken at the offices of the U. S.

Department of Justice, 1100 L Street, N.W., Washington, D.C.

at 9:01 a.m., Thursday, December 14, 2006, and the
proceedings being taken down by Stenotype by DENNIS A. DINKEL, FAPR, CRR, and transcribed under his direction.

Alderson Reporting Company

1-800-FOR-DEPO

EXHIBIT 1
0966f177 -fd11-4cef-a6d2-c5b6fde52c43

Case 1:05-cv-00448-NBF

Document 52-2

Filed 05/22/2007

Page 2 of 5

Terence Murphy
Washington, DC

December 14, 2006

Page 2
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APPEARCES:
On behalf of the Plaintiff:

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KAEN L. MAOS, ESQ.
Gibson, Dunn & Crutcher LLP
1050 Connecticut Avenue, N.W.

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Washington, DC 20036

Phone: 202 - 955 - 8500
On behalf of the Defendant:

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C. COLEMA BIRD, ESQ.

u. S. Department of Justice
1100 L Street, N.W.

Washington, DC 20530

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Phone: 202 - 3 07- 0453
LAWRENCE S. RAYNE, ESQ.
Defense Contract Management Agency
1523 West Central Road

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Arlington Heights, IL 60005-2451

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Phone: 224-625-8212

Alderson Reporting Company
1- 800 -FOR-DEPO
0966f177 -fd11-4cef-a6d2-c5b6fde52c43

Case 1:05-cv-00448-NBF

Document 52-2

Filed 05/22/2007

Page 3 of 5

Terence Murphy
Washington, DC

December 14, 2006

Page 151
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of the date of the segment-closing for purposes of
the CAS 413 segment-closing calculation?

A.

All of the liabilities were put together

by Mercer also.
Q.

And you're not in a position to describe

anything about how they arrived at those numbers i is
that true?

A.

That is correct. i will say this, though.

DCAA did audi t all of those calculations, and I don't

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believe there's any issues that were raised in the

11 determination of those deficit amounts. As I recall.
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Q.

My question, sir, related to the notice of

deposition and the basis for the calculations. I
don't know whether DCAA had subpoena power.

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MR. BIRD: Let me mark another exhibi t .
I'd like to have the reporter mark as Defendant's

Exhibit No. 6 for identification, a letter dated June 19, 2002, from Mr. Garvey to Mr. John McGrath, which
contains - - it is a one-page letter which contains as

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its sole attachment a letter dated June 13, 2002 from

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Mr. Jonathan R. Barry, F.S.A.E.A. on the letterhead
of Mercer Human Resource Consulting, and an address

Alderson Reporting Company 1 - 800 - FOR-DEPO
0966f177 -fd11-4cef-a6d2-c5b6fde52c43

Case 1:05-cv-00448-NBF

Document 52-2

Filed 05/22/2007

Page 4 of 5

Terence Murphy
Washington, DC

December 14, 2006

Page 194
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the analysis done by Mercer.

Can you explain what you did with the

analysis prepared by Mercer and how it formed or how
it went into the claims?

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A.

Mercer is our outside actuary.

In

6 essence, we took the information from Mercer. When
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Mercer provided the information to Raytheon, it was

also provided to DCAA, and I believe the CIPA team
looked at some of those documents that were put
together by Mercer.

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They reviewed those because if you look at

all of the documentation that was provided, the

ini tial submissions for these four claims did not
contain any government participation. They only
contained the Mercer package subsequent to that, as

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when we worked with government participation. So
those were looked at first.

I don't believe there's anything in the

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documentation that took any issue with the
calculations associated with the -- you know, the

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determination of the asset and liability position at

the time of the segment-closing. So we took those

Alderson Reporting Company
1- 800 -FOR-DEPO
0966f177 -fd11-4cef-a6d2-c5b6fde52c43

Case 1:05-cv-00448-NBF

Document 52-2

Filed 05/22/2007

Page 5 of 5

Terence Murphy
Washington, DC

December 14, 2006

Page 195
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amounts, those deficit amounts and utilized them in
the claims, and then extended them further as we
researched further information to determine

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government participation. That's what we did with

5 them.
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Q.

Mr. Murphy, do you know who - - if there

was any direct communication between the CIPA team
and Mercer?

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MR. BIRD: Obj ection to the form. You may

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answer.
THE WITNESS:

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I believe there was. Mercer

would confer on occasion with George Matray down in

New York.
BY MS. MAOS:
Q.

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Do you know who George Matray is?

A.

George Matray works in the insurance group

for DCMA, I believe.
Q.

Is that the same process that was followed

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for the segment-closings where there was a surplus?

A.

Yes, it was.

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MR. BIRD: Obj ection. Beyond the scope of

22 the direct examination.
Alderson Reporting Company 1 - 800 - FOR-DEPO
0966f177 -fd11-4cef-a6d2-c5b6fde52c43