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control panels; combined altitude radar altimeter system for
improved weapons delivery and low-altitude terrain avoidance;
enhanced fire control computer that managed fire control and
other functions; and advanced stores management subsystem that
performed the inventory, logic and control, status monitoring,
and release and jettison functions for the F-16's external weapon
stores.
The costs of developing the new systems were charged to the
MSIP (Contract 2038) and not to Contract 2034. Contract 2034's
profitability was affected by the success of GENDYN's development
efforts under MSIP (Contract 2038) because Contract 2034 did not
permit GENDYN relief from delay or change in price in the event
GENDYN encountered technological problems under MSIP. GENDYN
encountered numerous technological challenges in developing and
building the Block 25 aircraft.
Contract 2034 required GENDYN to have new software ready in
time for it to be tested and installed on the first of the Block
25 aircraft. GENDYN failed to complete the software on time, and
in August 1983, the Air Force withheld progress payments on
Contract 2038 from GENDYN. By the time the software was finally
completed (in December 1985), GENDYN had to retrofit the software
into completed F-16's, at GENDYN's expense.
The Air Force delegated the day-to-day responsibilities for
administering Contract 2034 to an Administrative Contracting
Officer (ACO) who was stationed at the plant in Fort Worth,
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