The US Government Accountability Office (GAO) released an assessment on 3/9 stating that Lockheed Martin delivered 110 F-35 fighter jets to the US military in 2024. "On average, each fighter was delivered 238 days late, a significant increase from 61 days in 2023," the report said.

Despite the delays, contractors on the project continued to receive award fees intended to incentivize faster deliveries, thanks to adjustments made by the F-35 program officials to payment terms. The GAO explained, "The program initially linked award fees to on-time deliveries, but later provided additional opportunities for contractors to earn these fees by shifting incentives to other aspects after it became clear Lockheed Martin would not be able to deliver any aircraft on time."

F-35 fighter jets on the assembly line in Texas, USA, June 2017. Photo: Lockheed Martin

F-35 fighter jets on the assembly line in Texas, USA, June 2017. Photo: Lockheed Martin

The GAO noted that due to these adjustments, the F-35 Joint Program Office (JPO) paid hundreds of millions of USD in performance award fees to Lockheed Martin, even as the rate of late aircraft deliveries and the average number of days late increased.

"The Lot 12-14 contract allowed Lockheed Martin to receive a portion of the award fee even if deliveries were up to 60 days late, with the amount decreasing each day. The corporation received most of the on-time award fee for Lots 13 and 14, delivered between 2021 and 2024, despite delivering all these aircraft late," the report stated.

Officials from the Defense Contract Management Agency (DCMA) predict that Lockheed Martin will not receive the majority of the on-time award fee for Lots 15-17 due to delays surrounding the Technology Refresh 3 (TR-3) package, related to the F-35's hardware and software.

The JPO subsequently shifted the award fee towards addressing what they believed to be the cause of the Lot 15-17 delivery delays, including $100 million to Lockheed Martin to upgrade its software laboratory capabilities and another $100 million for TR-3 related hardware, repairs, and testing equipment.

A formation of F-35s flying over Wisconsin, USA, June 23. Photo: USAF

A formation of F-35s flying over Wisconsin, USA, June 23. Photo: USAF

Pratt & Whitney, the engine supplier for the F-35, also received tens of millions of USD in on-time award fees after being penalized $10 million for increasingly late deliveries.

The GAO warned, "The award and penalty system has not effectively improved delivery schedules. Unless the on-time award mechanism is reassessed and more reasonable schedule targets are implemented, the F-35 program will continue to reward contractors despite late aircraft and engine deliveries."

The F-35 is the Pentagon's most expensive weapons development program. The project's cost increased by 10% in 2024 due to the need for engine cooling improvements.

Approximately 3,000 aircraft are planned for production throughout the F-35 program, with 1,000 already delivered to the US military and its allies. The F-35 fighters are expected to operate until 2088, and the program is projected to cost over $2 trillion to manufacture and maintain.

Nguyen Tien (According to Task&Purpose, AFP, AP)