The United States Department of Defense has paid Lockheed Martin approximately $1.7 billion despite ongoing concerns regarding the F-35 fighter jet’s poor readiness rates. An audit conducted by the Office of Inspector General (OIG) revealed that the F-35 Joint Program Office (JPO) failed to hold Lockheed Martin accountable for inadequate performance related to the aircraft’s sustainability, as outlined in a report issued on December 19, 2023.
The June 2024 air vehicle sustainment contract did not include sufficient oversight mechanisms, which led to the payment being made without any “economic adjustment” despite the aircraft’s readiness rate being only 50%. This means that, on average, the F-35 aircraft were unavailable for flight half of the time during the fiscal year 2024. The OIG memo highlighted that while the military services set specific performance standards, these were not met, resulting in over $1 billion in payments despite the poor performance metrics.
The audit indicated that the JPO had not effectively monitored Lockheed Martin’s performance, stating, “This occurred because the F-35 JPO did not include aircraft readiness performance or other measurable contract requirements.” Additionally, the report criticized the JPO for inadequate enforcement of material inspection and government property reporting requirements in the sustainment contract.
Findings from the Audit and Recommendations
The OIG’s findings also pointed to a lack of effective use of contracting officer representatives at F-35 aircraft sites, which is crucial for overseeing performance requirements. The JPO is primarily responsible for F-35 production and sustainment contracting, making its oversight role critical.
The F-35 Joint Strike Fighter program, the largest acquisition initiative of the Department of Defense, has an estimated lifecycle cost exceeding $2 trillion for buying, operating, and sustaining the aircraft. While the F-35s are designed for a service life of around 8,000 flight hours, testing on the F-35A variant suggests they could potentially last up to 24,000 flight hours, according to reports from Simple Flying.
In light of these findings, the OIG made several recommendations aimed at improving accountability and performance tracking. Key suggestions included modifying the contract to incorporate incentive metrics that align with military service performance requirements and better orienting the responsibilities of contracting officer representatives to ensure they effectively monitor and report on Lockheed Martin’s performance. The audit also called for an evaluation of staffing levels at all bases requiring F-35 oversight.
The official Performing the Duties of the Assistant Secretary of Defense for Sustainment, representing the Under Secretary of Defense for Acquisition and Sustainment and the Program Executive Officer for the F-35 JPO, expressed general agreement with the OIG’s recommendations. Of the seven recommendations made, six are reported as resolved but remain open, while one is still unresolved. The audit requests that comments on the unresolved recommendation be provided within 40 days of the final report.
The OIG will close the resolved recommendations once documentation is submitted to confirm that the agreed-upon actions have been implemented. This ongoing oversight is vital to ensuring that the substantial investment in the F-35 program translates into effective and reliable military capabilities.
