Lockheed, Pentagon Agree on $71 Million Credit Over F-35 Parts (excerpt)
(Source: Bloomberg News; published Sept. 29, 2020)
By Anthony Capaccio
Lockheed Martin Corp. and the Pentagon’s contracts management agency reached an informal agreement that the company will provide about $71 million in services for the F-35 jet program as compensation for delivering aircraft parts that weren’t ready for installation.

The Defense Contract Management Agency began negotiations with the No. 1 defense contractor in April for either refunds or equivalent services over F-35 parts delivered from 2015 to early 2020. The parts were delivered without electronic data that personnel need to track their history and remaining service life. The accord was reached on Sept. 18.

The agency and Lockheed are still “working out the repayment details before a formal document will be signed,” agency spokesman Matthew Montgomery said in an emailed statement. “Negotiations on repayment are ongoing, but we anticipate it being a combination of credits toward improvements already made” and future improvements to Lockheed’s parts management system, he said.

…/…

The agency initially estimated that Lockheed was responsible for at least $183 million in expenses to the U.S. from the missing or delayed electronic logs. The Pentagon inspector general recommended last year that officials seek $303 million in refunds. (end of excerpt)


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

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