The U.S. Department of Defense has paid Lockheed Martin $1.7 billion as of July 1, 2025, despite the F-35 Joint Strike Fighter program experiencing significant readiness challenges. An audit conducted by the Office of Inspector General (OIG) revealed that the Department did not adequately enforce performance standards related to aircraft sustainability in its June 2024 contract with Lockheed Martin.
The F-35 Joint Program Office (JPO) was found to have insufficiently monitored the contractor’s performance, resulting in a troubling 50 percent aircraft readiness rate. This figure indicates that the aircraft were unavailable for flight about half of the time. The audit notes that, although the military services established minimum performance requirements, these standards were not met. Notably, over $1 billion was paid out while the F-35s fell short of expected operational capabilities.
According to the OIG memo, “The average Air Vehicle Availability rate for all F-35 aircraft in FY 2024 was 50 percent.” The audit highlighted that the JPO failed to hold Lockheed Martin accountable for its “poor performance” in relation to F-35 sustainment activities. The lack of effective oversight stemmed from the JPO’s failure to include measurable contract requirements and enforce critical inspection protocols.
The OIG discovered that the JPO did not leverage the role of contracting officer’s representatives effectively to oversee performance at F-35 aircraft sites. This oversight is crucial for ensuring that the contractor meets the defined performance metrics.
Implications of the Audit Findings
The F-35 program represents the largest acquisition initiative in the Department of Defense’s history, with an estimated total lifecycle cost exceeding $2 trillion. This includes expenses related to purchasing, operating, and maintaining the aircraft throughout its expected service life of approximately 8,000 flight hours. Interestingly, testing of the F-35A variant suggests potential longevity of up to 24,000 flying hours, equivalent to three service lives.
In light of the findings, the OIG made several recommendations aimed at improving oversight and accountability within the program. Key suggestions include modifying the contract to incorporate incentive metrics that align with military performance requirements, refining the responsibilities of contracting officer’s representatives to ensure they effectively monitor and report on Lockheed Martin’s performance, and adjusting staffing levels at all F-35 oversight bases.
The official Performing the Duties of the Assistant Secretary of Defense for Sustainment, responding on behalf of the Under Secretary of Defense for Acquisition and Sustainment and the Program Executive Officer for the JPO, expressed general agreement with the OIG’s recommendations.
Of the total seven recommendations made by the OIG, six have been categorized as resolved but remain open, while one remains unresolved. The office has requested a response from the Under Secretary of Defense for Acquisition and Sustainment regarding the unresolved recommendation within 40 days of the final report. The OIG will close the resolved recommendations once management provides documentation evidencing the implementation of the agreed-upon actions.
As the F-35 program continues to evolve, the need for stringent oversight and accountability remains paramount to ensure that taxpayer funds are utilized effectively and that the military is equipped with reliable aircraft capable of meeting operational demands.
