What's Happening?
The Department of Defense Office of Inspector General conducted an audit revealing that the F-35 Joint Program Office (JPO) did not adequately oversee Lockheed Martin's performance in the 2024 air vehicle sustainment contract. Despite a 50% aircraft readiness
rate, Lockheed Martin was paid $1.7 billion by July 1, 2025, without economic adjustments. The audit highlighted that the JPO failed to include aircraft readiness performance or enforce material inspection and government property reporting requirements in the contract. Additionally, the JPO did not effectively utilize contracting officer’s representatives to oversee performance requirements at F-35 aircraft sites. The F-35 program is the Department of Defense's largest acquisition, with an estimated cost of over $2 trillion.
Why It's Important?
This audit underscores significant accountability and oversight issues within the Department of Defense's management of the F-35 program, which is crucial given its massive financial implications. The findings suggest that taxpayer money may not be effectively utilized, as performance metrics were not met, yet substantial payments were made. This could lead to increased scrutiny from lawmakers and the public, potentially affecting future defense contracts and procurement processes. The audit's recommendations aim to improve contract management and oversight, which could enhance the program's efficiency and effectiveness, ultimately impacting national defense capabilities.
What's Next?
The Office of Inspector General has made several recommendations to address these issues, including modifying contracts to incorporate performance incentives and improving oversight responsibilities. The Under Secretary of Defense for Acquisition and Sustainment is expected to respond to the unresolved recommendation within 40 days. The implementation of these recommendations could lead to more stringent oversight and accountability measures in future contracts, potentially improving the F-35 program's performance and readiness.
