$614 Million Withheld From Lockheed Martin
Defense Secretary Robert M. Gates announced a restructuring in
the F-35 Joint Strike Fighter office Monday to provide increased
oversight of a program he conceded has fallen behind in meeting key
benchmarks.
File Photo
Gates also announced that he has withheld $614 million in
performance fees from the lead contractor, Lockheed-Martin, "since
the taxpayers should not have to bear the entire burden of getting
the JSF program on track."
"We have restructured the F-35 program and believe it is on
track to become the backbone of U.S. air superiority for the next
generation," Gates said during a Pentagon news conference.
"Nonetheless, the progress and performance of F-35, over the last
two years, has not been what it should, as a number of key goals
and benchmarks were not met."
To fix the situation, the secretary announced a change in
leadership at the Joint Strike Fighter program office, which had
been headed by Marine Maj. Gen. David R. Heinz. A three-star
officer yet to be named will replace him, Gates said, the higher
rank reflecting the importance of the program to the future of
military aviation.
Gates, who visited Lockheed Martin's F-35 production facility in
Fort Worth, Texas, Aug. 31, said he has become concerned about the
program's progress as Ashton Carter, undersecretary for
acquisition, technology and logistics, became more involved in the
program. "It was clear that there were more problems than we were
aware of when I visited Fort Worth," Gates said. "And I think that
the restructuring program that Dr. Carter has put in place will
work. It is realistic. The cost estimates are now in accord with
what the joint estimating teams are predicting, rather than what
the program is predicting."
The problems facing the program aren't insurmountable, with
proper steps taken, Gates said. "I believe that we are in a
position to now move forward with this program in a realistic way,"
he said. "But by the same token, one cannot absorb the additional
costs that we have in this program and the delays without people
being held accountable."
Gates pointed to his track record since coming to the Defense
Department of demanding accountability. "Accountability is not just
about holding contractors responsible. The Department of Defense
also bears responsibility for the JSF's troubling performance
record," he said. "I think if I've set one tone here at the
Department of Defense, it is that when things go wrong, people will
be held accountable."
Visiting the Lockheed-Martin plant this summer, Gates said the
importance of the F-35 program can't be overstated, citing the new
aircraft as an example of new, innovative and more cost-effective
ways to meet the country's current and future defense needs.
The F-35 is the first aircraft to be developed within the
department to meet the needs of three services, with three variants
being developed simultaneously. This brings cost savings and
economies of scale not possible with separate aircraft because the
F-35s will share common components and maintenance requirements,
Gates noted. "We cannot afford, as a nation, not to have this
airplane," he said, noting that every dollar saved in acquisition
frees up a dollar to support other critical wartime
requirements.
The Air Force will receive the F-35's "A" variant, which will
provide conventional takeoff and landing capabilities. The Marine
Corps is slated to receive the "B" variant that has a vertical-lift
capability. The Navy will receive the "C" variant, designed for
carrier launches.
The different F-35 variants will replace the legacy F-16
aircraft for the Air Force and the F/A-18 and AV-8 aircraft for the
Navy and Marine Corps.