Gates Calls For Delay In Pentagon Buys Of Lockheed F-35s
More than $2.8 billion that was budgeted earlier to buy the militarys next-generation fighter would instead be used to continue its development.
The delay is a setback for both Gates and Lockheed.
The defense secretary said last year he wanted to accelerate jet purchases to complete the militarys most expensive weapons program sooner and possibly save money.
For Lockheed, the worlds largest defense contractor, accelerated purchases would be more profitable because a programs production phase brings in more revenue than research and development. In addition, the Bethesda, Maryland-based company faces negotiations that may require it to absorb a share of cost overruns during what will likely be an extended development phase. The company now absorbs no overrun costs.
Along with the delay in Lockheeds program, Gates is calling for spending a total of $2.4 billion in 2011 and 2012 to buy 26 F/A-18E/F planes that are capable of jamming enemy radar. Those aircraft are produced by Boeing Co., the second-largest defense contractor.
Navy officials had said previously that if the F-35 program slipped, they would press for more F-18s to mitigate a “fighter gap” caused by their aging, carrier-based jets.
Cuts Itemized
Gatess order is in an unreleased document he signed Dec. 23 that is the basis for the new defense budget to be released Feb. 1. The document was widely distributed within the Pentagon.
Gates cut the planned purchase of F-35s by 10 planes in 2011 to 42; by 17 in 2012 to 45; by 52 in 2013 to 77; by 20 in 2014 to 90; and 23 in 2015 to 107, according to the document made available to Bloomberg News.
He directed the shift from the procurement budget to development of $320 million in fiscal 2011; $544 million in 2012; $716 million in fiscal 2013; $872 million in fiscal 2014 and $356 million in 2015, according to the document.
The document gives no indication that the programs target quantity would be cut. The planes bought through 2015 would be used for training, testing and to fill the first operational squadrons.
2,456 U.S. Planes
The F-35 programs current projected cost is $298.8 billion. The plan is to build by 2034 at least 2,456 U.S. aircraft with common parts for the Air Force, Navy and Marine Corps.
Gatess decision appears to have been influenced by several independent assessments commissioned by the Pentagon, said Thomas Christie, who was in charge of the Defense Departments weapons testing from 2001-2005.
One recent study agreed with a similar one from a year earlier that predicted a 2 1/2 year delay in development beyond the current target of October 2014 and an added cost of $16.5 billion. The new estimate recommended the Pentagon add $314 million to the five-year plan to beef up testing. Gates did so.
A separate review of Lockheeds manufacturing raised questions about the companys ability to meet its schedule for assembling the plane.
Production Rate at Issue
The deferral of buying 122 aircraft reflects concerns “about Lockheed Martins ability to produce aircraft at the previously planned rate,” Christie said in an interview.