Defense News
Pentagon Warns Lockheed About Possibly Withholding Payments
Bloomberg News (6/15, Capaccio) reported the Pentagon "will withhold payments to Lockheed Martin Corp. starting as early as next month if the company doesn't submit a suitable plan for fixing problems in its system for tracking contract costs and schedules, Pentagon procurement director Shay Assad said." The revised plan is due by June 30, and if it is "deemed unacceptable," Assad said, "We are going to take action to withhold funds." He added "there has been no decision on how much money might be withheld, and the action could affect payments for the $382 billion F-35 Joint Strike Fighter, the Pentagon's costliest program." The Pentagon's weapon buyer Ashton Carter "is elevating the importance of so-called tracking systems in overseeing contractors' performance," and told Congress Lockheed has "a systemic, corporate-level problem." Lockheed spokesman Joe Stout said the company has been "working closely" with the Pentagon "to develop a plan that will address all issues and lead to resolution of all concerns."
