On January $1,2025,$ The Navy awards to Contractor A a fixed$-$price contract for $$100,000,000$ to create $1,000,000$ widgets. The widgets are due to the Navy by December $31,2025.$ Contractor A$\text{'}$s proposal for the $$100,000,000$ price includes the intial expense of purchasing $$20,000,000$ piece of machinery necessary to produce the widgets.

On October $15,2025,$ the Contracting Officer notes in a letter to Contractor A that it appears Contractor A is behind schedule and will not make delivery by December $31,2023.$ Contractor A responds on October $20,2025$ that they have provided $250,000$ widgets to date and that, while Contractor A will miss the deadline of December $31,2023,$ at current production rates, performance should be completed by February $15,2026(2\mathrm{.}5$ months late$).$ Contractor A notes in the same correspondence that delays in the availability of the expensive machine contributed to the delay in performance.

The Contracting Officer is aware that, even if he Terminates for Default on November $1,2025$ and reprocures, the Government will not receive the remaining widgets until July $1,2026.$ The Contracting Officer nevertheless makes the decision to T$4$D$.$ Navy pays Contractor A the price of the $250,000$ delivered widgets minus the reprocurement cost of $$50,000.$

Contractor A appeals the T$4$D as improper to the Armed Services Board of Contracting Appeals. What information supports this claim?

If Contractor A successfully converts this T$4$D to a T$4$C$,$ what will Contractor A be entitled to recover?

What abou tht eexpensive piece of equipment purchased in the beginning?