Lockheed said the allocable Cray costs for 1994 and 1995 was $30.3 million, representing $23.5 million of Cray hourly costs and $6.8 million for Lockheed’s loss on the disposition of the computers in late 1995. Since the government had paid it only $20.8 million, Lockheed asserted it was underpaid $9.5 million and attempted to use this underpayment as an offset to the CAS non-compliance charges. However, the court ruled because the contractor did not file a formal claim on this issue, it now may not raise, by way of an offset, its losses on the Cray computers. The court claimed the loss claim did not arise out from "the same set of operative facts" as those considered by the CO in rendering its non-compliance decision. Nothing in the record indicated the CO was even aware of the loss and consideration of the loss claim, even in the form of an offset, would have required the CO to consider all of the facts related to the transactions giving rise to the loss (Lockheed Martin Corp. v United States, Fed. Cl., No. 00-129C).

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