How Lockeed can score $52.5 million pay-day on F-35

F35 static model credit USAF 560.jpgDelivering the pole model on time to Eglin AFB apparently doesn’t count (photo courtesy USAF).

Lockheed Martin can earn a $52.5 million extra pay-day this year on the F-35 program, chief executive Robert Stevens told Wall Street analysts on Tuesday. That may seem like chump-change compared to the roughly $11.4 billion in the Fiscal 2011 budget for F-35, but these days a defense contractor will gladly take anything it can get.

The list also helps clarify what the F-35 joint program office thinks are some of the most important objectives for the struggling program to achieve this year.

1. Complete all structural testing = $10.5 million

2. Complete carrier suitability tests on F-35C = $10.5 million

3. Start sea trials for the F-35B short take-off and vertical landing variant = $10.5 million

4. Release Block 1 software training update to Eglin AFB = $10.5 million

5. Release Block 2 software to flight test program = $10.5 million

Last week, F-35 executive Vice Adm David Venlet revealed that Lockheed missed on four of five milestones worth $7 million each last year. The remaining $28 million in the bonus budget last year is lost forever.

Venlet’s bonus plan comes from the $614 million award fee withheld from Lockheed in February last year. The fund was broken into annual lots of milestone-based incentive bonuses that increase in value each year.  


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5 Responses to How Lockeed can score $52.5 million pay-day on F-35

  1. dude 28 April, 2011 at 1:44 pm #

    In light of the latest PRC advancements the JSF seems driven by money rather than capability of strategic significance.

  2. William C. 28 April, 2011 at 5:36 pm #

    How about a bonus for lightening the aircraft a tad?

  3. Aussie Digger 29 April, 2011 at 7:01 am #

    Hey Dude,

    Yeah, there is no “strategic significance” in a future fighter force comprising 2600+ fully low observable aircraft, when the “competition” is still struggling to build multi-role 4th Gen’s that are competitive in ALL roles against legacy Teen series is there?


  4. puppethead 30 April, 2011 at 12:02 pm #

    Anyone else notice how the latest F135 issue came to light literally the day after the F136 program was told to shut down? Why would we want any competition again?

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