Pentagon to Withold Lockheed F-35 Payments Over Tracking

Lockheed Martin Corp., the No. 1 U.S. defense contractor, is the first company to have payments withheld under a new Pentagon rule intended to correct deficiencies with internal systems that track cost, schedules, accounting and purchases, according to the Defense Department.

The Pentagon will withhold about $1 million a month in billings from Lockheed’s aeronautics division until the unit fixes longstanding shortcomings with its cost and schedule tracking system, Shay Assad, the Pentagon’s director of pricing, said today in an interview.