Lockheed’s F-35 Bonus Fees Under Scrutiny by Pentagon’s Watchdog (excerpt)
(Source: Bloomberg News; published June 21, 2018)
By Anthony Capaccio
The Pentagon’s inspector general is reviewing bonuses paid to Lockheed Martin Corp. for performance on contracts to support its F-35 jets in light of questions about whether the military services are getting the spare parts they need.

The review will assess “the information used to support all incentive fees paid” and “whether that information substantiates the fee,” Bruce Anderson, a spokesman for acting Inspector General Glenn Fine, said in an email. “Depending on what we find, we could make recommendations to improve what fees are being used,” he said.

Lockheed’s production and support contracts for the F-35, the costliest U.S. weapons program, provide for incentive fees, which are paid out if performance goals are met or exceeded. The 300th aircraft was delivered this month out of the planned U.S. purchase of 2,456 F-35s.

“The audit isn’t about aircraft production. It’s about the incentive fees paid to Lockheed Martin on the F-35 sustainment,” or support, contracts, Anderson said. The amounts paid haven’t been disclosed. (end of excerpt)

Click here for the full story, on the Bloomberg News website.


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