Lockheed Risks $400 Million Payment Delay Until It Shows New F-35 Software Works
- Pentagon will withhold final payments of about 10% per plane
- Payment may be held back on 52 of the advanced fighter jets
A US military Lockheed Martin F-35 at the 2023 Paris Air Show in Le Bourget, France.
Photographer: Benjamin Girette/BloombergThe Pentagon will withhold about 10% of the price for new F-35s from Lockheed Martin Corp. until the contractor shows that new software works properly, potentially delaying more than $400 million in payments by December on 52 of the advanced fighter jets.
The aircraft needs the delay-plagued software upgrade to function just right with new cockpit hardware before it can carry more precise weapons and gather more information on enemy aircraft and air defenses. The “TR-3” upgrade will increase processing power 37 times and memory 20 times over the F-35’s current capabilities. The Defense Department said Lockheed’s contract calls for it to deliver as many as nine jets a month with the improved software and hardware.