Pentagon Withholds $5 Million for Each F-35 Jet Until Software Upgrades Are Complete

Lockheed Martin is the primary developer of the F-35 stealth combat jets.
Pentagon Withholds $5 Million for Each F-35 Jet Until Software Upgrades Are Complete
An RAF Lockheed Martin F-35B fighter jet taxis along a runway after landing at the Royal International Air Tattoo at Fairford, Great Britain, on July 8, 2016. Peter Nicholls/Reuters
Matt McGregor
Updated:
Though F-35 jet deliveries resumed in July, the U.S. military is withholding $5 million in payment per jet to Lockheed Martin until technological upgrades are completed, the F-35 Joint Program Office (JPO) said on Thursday.
The JPO is a division of the Naval Air Systems Command that oversees the program management of the F-35 stealth jet series.
Lockheed Martin is the primary developer of the F-35 stealth combat jets.
“The F-35 JPO and Lockheed Martin have reached an agreement for acceptance and delivery of Technology Refresh 3 (TR-3) enabled aircraft with robust combat training capability,” a Lockheed Martin spokesperson told The Epoch Times in an emailed statement. “As a part of the agreement, the JPO will withhold a portion of the final aircraft delivery payments from Lockheed Martin until the TR-3 combat capability is qualified and delivered.”

In addition, Lockheed Martin and its industry partners are investing in a digital infrastructure that will support the F-35’s flights, the spokesperson said.

The jet’s TR-3 software update—which includes increased processing and memory capacity—is behind schedule.
In a 2023 press release, Air Force Lt. Gen. Mike Schmidt, the executive program officer for the JPO, said the initial F-35 test flight with the TR-3 software upgrade was a “significant achievement.”

“TR-3 is the F-35’s critical computer processing electronics upgrade that will continue to provide all our pilots with the capability they need to be successful against any adversary,” he said.

According to Lockheed Martin, the F-35 is “the most advanced, connected fighter aircraft in the world,” using integrated technology that gives an “unprecedented advantage over adversaries.” 
“The 5th Generation F-35 combines stealth, sensors and information fusion in a supersonic, highly maneuverable fighter,” Lockheed Martin said on its website. “The F-35’s ability to collect, analyze and share data is a powerful force multiplier that enhances the broader force—air, land and sea.” 

‘Top Priority’

Lockheed Martin has said that the software updates could take months to complete.
The company plans to deliver 100 F-35 jets—which make up 27 percent of the company’s sales—to the U.S. military in 2024 and over 150 in 2025.
The Bethesda, Maryland-based company’s sales forecast increased to $70 billion to $71 billion as opposed to the $68 billion to $70 billion previously expected when the sales of the F-35 jet resumed in July.
The cost of an F-35 is $82.5 million on average, while other variants are averaged at $108 million.
Lockheed Martin CEO Jim Taiclet said the F-35 is the company’s “top priority,” and that it delivered the first jet updated with TR-3 software and anticipates more deliveries for 2024.
Mr. Taiclet said the upgrades “are critical steps” to guarantee that the jet is “the most advanced fighter aircraft in the world.”
Reuters contributed to this article.
Matt McGregor
Matt McGregor
Reporter
Matt McGregor is an Epoch Times reporter who covers general U.S. news and features. Send him your story ideas: [email protected]
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