A 1974 Philippines Air Force C-130 was in such a bad shape when it arrived at a BAE Systems hanger in Mojave, California for refurbishment that the company spent more than the ceiling price of $4.2 million to repair it.

By Torsten Maiwald [GFDL 1.2 or GFDL 1.2], via Wikimedia Commons

Although funding was eventually raised to $14.7 million, BAE Systems contended that the payment should be $18.33 million. It then sued the U.S. government in order to recover $6.45 million to account for the difference and provide some profit.

Both parties settled the lawsuit last month after three-years of negotiations.

Source: Alert 5