Lockheed's F-35 Problems Keep Piling Up

(MoneyWatch)  The F-35 Joint Strike Fighter is the future of U.S. military aviation. The aircraft, manufactured primarily by Lockheed Martin (LMT), will be used by the Air Force, Navy and Marine Corps; it will fly from large airfields, aircraft carriers and improvised landing fields near the front line. Several thousand of the advanced, stealthy fighter and attack aircraft will be made for the U.S. and Allies across the world.

But bad news about the program has been leaking out for the last six months, and in the last week more problems have been reported. In response to a Freedom of Information Act (FOIA) request, the Fort Worth Star-Telegram received reports by the Defense Contracts Management Agency (DCMA) about Lockheed's performance, DCMA representatives work inside contractor plants to monitor work and make sure the government is receiving what it has contracted for. The DCMA has found serious schedule problems in the assembly and test of the aircraft. How bad? Bad enough that that Northrop Grumman (NOC), who build the aircraft's center section, were told to stop delivering their parts because they were being stockpiled as other assemblies and parts weren't ready. Lockheed is also taking parts off the aircraft in the production line to repair the test aircraft. This further delays production.

The Air Force has confirmed that the aircraft will enter service in 2015, two years later then planned. The Navy has yet to announce whether it will keep to its 2014 date. Delays to the F-35 will force the U.S. and its Allies to keep flying older aircraft longer and at greater expense. The Australian and Dutch governments have raised these concerns.

The Navy is trying to negotiate a five-year production contract for F/A-18 aircraft with Boeing (BA). Right now the prices proposed by Boeing are too high. The contract has become more important as the aircraft will be needed to fill the gap opened by JSF's delay. If the JSF had been available as originally planned, fewer F-18 aircraft would have been needed and the production run shorter.

The Obama Administration has canceled two major programs -- the VH-71 Presidential Helicopter and the Army's new ground vehicle Future Combat Systems (FCS) -- because they were well behind schedule and over cost. It also ended F-22 production run due to its high cost. Will it keep the F-35 going no matter what the schedule and cost? And if not, what will replace it?