The jets were late. Lockheed got on-time bonuses anyway
After nearly 20 years of F-35 production, the program continues to “overpromise and underdeliver,” GAO said.
Audrey Decker | September 3, 2025 07:03 PM ET
Industry Pentagon Air Force Navy Marine Corps
The maker of F-35 jets is getting paid for on-time delivery, even though it’s delivering the aircraft late and without the required upgrades, a government watchdog agency said.
“The F-35 program office compensated Lockheed Martin with hundreds of millions of dollars of performance incentive fees while the percentage of aircraft delivered late and the average days late grew,” according to a new report from the Government Accountability Office.
Both Lockheed and engine-builder Pratt & Whitney have received incentive fees, but the money has been “largely ineffective” at holding the contractors accountable, according to GAO. The structure of the incentives has allowed Lockheed to deliver F-35s “up to 60 days late” and earn some of the money.
“Unless the F-35 program re-evaluates its use of incentive fees and better aligns them to achieving desired production schedule outcomes, it will be at greater risk of continuing to reward contractors for delivering engines and aircraft late,” GAO said.
https://www.defenseone.com/business/2025/09/jets-were-late-lockheed-got-time-bonuses-anyway/407880/?oref=d1-topic-lander-top-story
