Free Stipulation - District Court of Federal Claims - federal

Case 1:99-cv-00440-SGB

Document 164

Filed 09/25/2007

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IN THE UNITED STATES COURT OF FEDERAL CLAIMS ATK THIOKOL, INC. Plaintiff, vs. THE UNITED STATES OF AMERICA, Defendant. STIPULATION In accordance with the Court's direction, the parties hereby stipulate to the following facts: 1. In decisions dated November 30, 2005 (ATK Thiokol, Inc. v. United States, Case No. 99-440c (Judge Braden)

68 Fed. Cl. 612 (2005)), July 31, 2006 (ATK Thiokol, Inc. v. United States, 72 Fed. Cl. 306 (2006)), and May 31, 2007 (ATK Thiokol, Inc. v. United States ("ATK 2007"), 76 Fed. Cl. 654 (2007)), the Court held that the United States (the "government") had disallowed improperly certain independent research and development ("IR&D") and equipment costs from interim indirect cost billing rates of ATK Thiokol, Inc. ("ATK") applied to all flexibly priced ATK contracts performed in relevant years. The IR&D and equipment costs that, according to the Court's November 30, 2005 decision, the government has disallowed improperly, appear below by fiscal year and in total: Year 1998T 1998 1999 IR&D $1,017,538 $1,116,822 $972,257 Equipment N/A N/A $122,404 Total $1,107,000 $1,117,000 $1,096,404

Case 1:99-cv-00440-SGB

Document 164

Filed 09/25/2007

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Year 2000 2001 2002 2003 2004 2005 2006 TOTAL 2.

IR&D N/A N/A N/A N/A N/A N/A N/A $3,106,617

Equipment $520,541 $242,647 $646,362 $591,651 $481,690 $393,353 $131,603 $3,130,251

Total $520,541 $242,647 $646,362 $591,651 $481,690 $393,353 $131,603 $6,236,868

Regarding depreciation costs relating to facilities and equipment for the

Castor IV motor which were involved in this appeal, ATK is entitled to classify all such depreciation costs assignable to fiscal year 2007 and future years as allowable costs for any government contract purposes, including for interim billing purposes, subject to any limitation in any government contract on the total amount of allowable costs that the government is obligated to pay. 3. This stipulation is limited to the undisputed facts set forth above. Each

party reserves its right to raise any other issues in this litigation and reserves its right to appeal based upon any prior or subsequent decisions by the Court. Respectfully submitted this 25 day of September, 2007.

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Case 1:99-cv-00440-SGB

Document 164

Filed 09/25/2007

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Assistant Attorney General s/ Thomas A Lemmer Thomas A. Lemmer McKenna Long & Aldridge LLP 1875 Lawrence Street, Suite 200 Denver, Colorado 80202 Tel: (303) 634-4000 Fax: (303) 634-4400 ATTORNEY FOR ATK THIOKOL, INC. OF COUNSEL: Steven M. Masiello McKenna Long & Aldridge LLP 1875 Lawrence Street, Suite 200 Denver, Colorado 80202 Michael L. Bell Alliant Techsystems Inc. ATK Thiokol, Inc. P.O. Box 98 Magna, UT 84044-0098 s/ Robert E. Chandler ROBERT E. CHANDLER Trial Attorney Commercial Litigation Branch, Civil Div. Department of Justice 1100 L Street, N.W. Attn: Classification Unit, 8th Floor Washington, D.C. 20530 Tel: (202) 514-4678 ATTORNEYS FOR DEFENDANT OF COUNSEL: Douglas Jacobson Defense Contract Management Agency B.H. Whipple Federal Building One Federal Drive, Suite 1150 Fort Snelling, MN 55111-4007 Tel: (612) 605-4105 Paul Mitchell Defense Contract Audit Agency 8725 John J. Kingman Road, Suite 2135 Fort Belvoir, VA 22060 Tel: (703) 767-3045 PETER D. KEISLER Assistant Attorney General JEANNE E. DAVIDSON Director s/ Donald E. Kinner DONALD E. KINNER

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