The U.S. Department of Defense (DoD) has disbursed approximately $1.7 billion to Lockheed Martin for the F-35 Joint Strike Fighter program, despite the aircraft’s troubling readiness rate, which averaged only 50% in 2024. A recent audit by the Office of Inspector General (OIG) revealed that the DoD did not adequately hold Lockheed accountable for subpar sustainability performance under the June 2024 air vehicle sustainment contract.
The audit highlighted significant oversight failures by the F-35 Joint Program Office (JPO), which is responsible for the management of the F-35 production and sustainment contracting. The report stated that the JPO did not enforce critical performance metrics related to aircraft readiness, leading to payments exceeding $1 billion without necessary economic adjustments, despite the aircraft not meeting military service requirements.
According to the OIG, the average Air Vehicle Availability rate for all F-35 aircraft was only 50%, meaning the aircraft were not operational half of the time during the fiscal year. The audit documented that the JPO had failed to adequately monitor Lockheed Martin’s performance, citing a lack of measurable contract requirements and ineffective use of contracting officer representatives at F-35 sites.
Audit Findings and Recommendations
The OIG’s findings indicate that the JPO’s insufficient oversight allowed Lockheed Martin to receive substantial payments without demonstrating the expected performance standards. The F-35 Joint Strike Fighter is the largest acquisition program of the defense department, with estimated lifetime costs exceeding $2 trillion for purchasing, operating, and sustaining the aircraft.
In response to these findings, the OIG made several recommendations to improve contract management and oversight. Key suggestions include revising the contract to incorporate performance incentive metrics aligned with military requirements and enhancing the responsibilities of contracting officers to ensure effective monitoring and reporting of Lockheed’s performance.
The official performing the duties of the Assistant Secretary of Defense for Sustainment, alongside the Under Secretary of Defense for Acquisition and Sustainment, expressed general agreement with the OIG’s recommendations. Of the seven recommendations outlined, six have been resolved but remain open, while one remains unresolved. The OIG has requested a formal response to the unresolved recommendation within 40 days of the audit’s final report.
The audit underscores the critical need for improved accountability measures in defense contracting. With the F-35 program’s significant investment and strategic importance, ensuring its operational readiness is essential for maintaining defense capabilities. The OIG will close resolved recommendations once it receives documentation confirming the implementation of agreed-upon actions.
