Back to news

October 1, 2020 | International, Aerospace

Lockheed, Pentagon agree on $70.6M settlement over F-35 parts problems

Ed Adamczyk

Sept. 30 (UPI) -- Lockheed Martin will invest nearly $71 million to correct an ongoing problem with spare parts for the F-35 fighter plane, an agreement the Pentagon states.

The agreement, announced on Tuesday, will be formalized within two weeks, a Defense Contract Management Agency spokesman said.

The deal refers to over 15,000 F-35 spare parts delivered to the U.S. military without "electric equipment logs," which permit the parts to the identified and absorbed into logistics systems.

Incorrect or unavailable information delays the uploading of data, and the dispute centered on at least $183 million in Defense Department expenses owing to the problem.

The parts in question were rejected for installation only because of the lack of tracking data -- no flaws in safety or manufacturing were inferred, officials said.

The action was initiated after the Pentagon's inspector general discovered the problem in a 2019 audit, and recommended that the Defense Department should seek $303 million in refunds.

Instead of a direct payment from Lockheed, the defense contractor will "compensate the government with Lockheed Martin investments" to ensure that future spare parts are delivered with accurate EELs, company spokesman Brett Ashworth said.

RELATED Lockheed, Boeing and Saab bid on Canada's fighter jet contract

The House Oversight and Reform Committee was critical of Lockheed during a July hearing, but on Wednesday, committee members Rep. Carolyn Mahoney, D-N.Y., and Rep. Stephen Lynch, D-Mass., applauded the resolution of the dispute.

"We applaud the Department of Defense for its efforts to hold Lockheed Martin accountable for failing to meet its F-35contract requirements," Mahoney and Lynch said in a joint statement.

"While we believe Lockheed should have reimbursed American taxpayers for a greater share of the funds DOD spent to address the inefficiencies uncovered by our committee's investigation, this is a step in the right direction. We look forward to seeing the final signed agreement that codifies Lockheed Martin's commitment to improving the F-35 program," they said in the joint statement.

https://www.upi.com/Defense-News/2020/09/30/Lockheed-Pentagon-agree-on-706M-settlement-over-F-35-parts-problems/5021601494979/

On the same subject

  • How Relativity Space plans to win the Pentagon’s launch contracts

    September 22, 2020 | International, C4ISR

    How Relativity Space plans to win the Pentagon’s launch contracts

    Nathan Strout Relativity Space wants to be the first company to launch an entirely 3D-printed rocket into orbit and it wants the Pentagon as a customer. While the COVID-19 pandemic has thrown a wrench into plans, a growing number of companies are looking to provide small and medium launch services to the U.S. government. The establishment of the U.S. Space Force, Space Development Agency and U.S. Space Command in 2019 signaled the Pentagon's ambitious plans for launching more payloads into space, and providing a vehicle for just a portion of those launches would prove lucrative to any company. For Vice President of Business Development and Government Affairs Josh Brost, Relativity Space stands out from the competition, bringing disruptive 3D printing technology to bear on the small launch sector. Prior to joining Relativity, he worked at SpaceX for nine years, where he was responsible for the company's government sales. Even as the company works toward the launch of its first Terran One rocket in fall 2021, Relativity has worked to secure contracts in the commercial world. In June, the company announced it had secured a deal with Iridium Communications for six dedicated launches to low Earth orbit, with the first launch taking place no earlier than 2023. That same month, Relativity also announced a Right of Entry Agreement with the 30th Space Wing for development of rocket launch facilities at Vandenberg Air Force Base. Recently, Brost and Relativity Space co-founder and CEO Tim Ellis spoke with C4ISRNET about how the company plans to win launch contracts with the U.S. government. https://www.c4isrnet.com/battlefield-tech/space/2020/09/21/how-relativity-space-plans-to-win-the-pentagons-launch-contracts/

  • Cubic Awarded Contract from Naval Air Systems Command for KnightLink Systems

    February 22, 2024 | International, Naval

    Cubic Awarded Contract from Naval Air Systems Command for KnightLink Systems

    The KnightLink software provides a wide range of capabilities and video support including operational, vendor, flight test, laboratory aid and maintenance

  • KC-46, P-8 production to stop as Boeing temporarily shuts down facilities

    March 24, 2020 | International, Aerospace

    KC-46, P-8 production to stop as Boeing temporarily shuts down facilities

    By: Valerie Insinna WASHINGTON — Production of the Air Force's KC-46 refueling tanker and the Navy's P-8 maritime surveillance plane will stop as Boeing shuts down all facilities in the Seattle area amid the coronavirus pandemic. “Boeing plans to begin reducing production activity today and projects the suspension of such operations to begin on Wednesday, March 25, at sites across the Puget Sound area,” the company said in a statement on Monday. A Boeing spokesman confirmed that the impacted area includes the facilities in Everett and Renton, where the KC-46 and P-8 are made, respectively. “We plan to temporarily suspend all production operations, including those relating to P-8 and KC-46A, in the Puget Sound region,” the spokesman said. “We're actively engaged with our defense customers to minimize any impacts on their missions. Certain non-production work for all commercial derivative aircraft programs, including for the KC-46 remote vision system enhancements, will continue being done by employees working remotely.” The company is urging employees to telework if they can, but work on classified projects cannot be done on laptops, which could impact more sensitive elements of defense programs. The production stoppage itself is perhaps an even more urgent challenge. Boeing's Puget Sound facilities are best known for commercial airliner production, but the commercial-derivative aircraft it makes for the military —like the KC-46 and P-8 — are built on the same lines. Any pause in commercial production could put Boeing behind in delivering aircraft to the Air Force and Navy. However, Boeing's defense business will likely be able to make a quick recovery as long as the pause in production is not protracted, said Richard Aboulafia, an aerospace analyst with the Teal Group. “P-8, KC-46 and other Boeing defense production in the Puget Sound area is mostly low-volume, like around 1-2 per month,” he said. “So they should be able to recover over the course of the year, assuming the factory deep clean is successful and the pandemic threat turns a corner.” Boeing CEO Dave Calhoun characterized the temporary plant closures as a “necessary step” to protect employees in the wake of a state of emergency in Washington state. "We continue to work closely with public health officials, and we're in contact with our customers, suppliers and other stakeholders who are affected by this temporary suspension,” he said. “We regret the difficulty this will cause them, as well as our employees, but it's vital to maintain health and safety for all those who support our products and services, and to assist in the national effort to combat the spread of COVID-19.” The company will also continue to monitor U.S. government guidance on COVID-19 and conduct a deep cleaning of impacted sites during the two-week pause, Boeing said. https://www.defensenews.com/coronavirus/2020/03/23/kc-46-p-8-production-to-stop-as-boeing-temporarily-shuts-down-production-in-puget-sound-area/

All news