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Lockheed Poised to Get $11 Billion F-35 Contract Despite Delays

Aug. 22, 2018
The defense contractor has been “late to contract requirements” in providing 209 of 308 of the planes to U.S. and international customers.

Lockheed Martin Corp. continues to deliver its next-generation F-35 aircraft late because of production flaws, even as the Pentagon is poised to award the company a potential $11 billion contract that’s the biggest yet.

The contractor for the costliest U.S. weapons system has been “late to contract requirements” in providing 209 of 308 of the planes to U.S. and international customers through June 30, the Defense Contract Management Agency said in a statement to Bloomberg News. While Lockheed and the Pentagon’s F-35 program office said they expect on-time delivery of all 91 F-35s due this year, the contract agency predicted seven won’t make that deadline.

“The government expects and needs better performance by Lockheed Martin and its suppliers,” Mark Woodbury, a spokesman for the Defense Contract Management Agency, said in the statement. Major improvements on the assembly floor will be “more difficult to achieve since many of the easy corrections have already been made,” he added.

While the Pentagon’s F-35 office concurs with most of the contract agency’s concerns, according to Joe DellaVedova, a spokesman, he said Lockheed “remains on track” to deliver all 91 jets this year. Carolyn Nelson, a Lockheed spokeswoman, said the company is making steady progress in eliminating production-line failings.

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