Pentagon To Withhold 5% Of F-35 Lot 5 Payments

Continued flaws with a program designed to track the cost of the military’s largest weapon system are eating into Lockheed Martin’s bottom line. Late last week, Lockheed learned the military is halting an ongoing review of its internal audit program, the earned value management system (EVMS). Along with that decision, the Defense Contract Management Agency (DCMA) will withhold 5% of the price of the fifth lot of fighter jets — the maximum penalty ...