The Pentagon is withholding $46.5 million from Lockheed Martin because of ongoing deficiencies with a system used to track costs and schedules for the F-35 fighter, Bloomberg reports.
The F-35 has been criticized for delays and growing costs. Program costs are at an estimated $395.7 billion for eventual production of 2,443 planes, up 70 percent from the $233 billion projected in 2001, adjusted for inflation, according to Bloomberg.
The funds being withheld won’t be released until all the deficiencies in the system are corrected and it “regains approval status,” a spokeswoman told Bloomberg.
A Pentagon rule, effective August 2011, required new contracts to spell out arrangements for withholding payments if there are any glitches. The most the Pentagon can withhold from billings under the regulation is 5 percent.
Addressing the 3 Biggest BYOD Security Threats
Research Report: Powering Continuous Monitoring Through Big Data
Mobile Apps: New Ways to Connect Government with Citizens
Continuous Monitoring As a Service: A Shift in the Way Government Does Business
JOIN THE DISCUSSION
By using this service you agree not to post material that is obscene, harassing, defamatory, or otherwise objectionable. Although Nextgov does not monitor comments posted to this site (and has no obligation to), it reserves the right to delete, edit, or move any material that it deems to be in violation of this rule.