Lockheed Martin Slapped with US$30 Million Fine for Overcharging in F-35 Scandal

(DEFENCE SECURITY ASIA) –The defense contractor behind the cutting-edge F-35 Lightning II fighter jet has been hit with a staggering US$30 million (RM133 million) penalty for allegedly overcharging the U.S. Department of Defense (DoD) in the aircraft’s development and maintenance.

The U.S. Department of Justice announced the penalty imposed on Lockheed Martin.

This decision comes in the wake of President Donald Trump’s bold declaration that his close aide, Elon Musk, who heads the Department of Government Efficiency (DOGE), will root out billions of dollars in wasteful Pentagon spending.

Adding fuel to the fire, Musk—a fierce Trump ally—recently made waves with his scathing remark: “Some idiots are still building manned fighter jets like the F-35 in an era that increasingly prioritizes drones.”

The fine against Lockheed Martin comes as the F-35 program faces mounting challenges, including production delays and rising costs.

The total lifecycle cost of the F-35, covering development, production, and sustainment, is projected to reach US$485 billion (RM2.1 trillion).

Between 2013 and 2015, Lockheed Martin Corp allegedly failed to accurately disclose cost information to the F-35 Joint Program Office at the U.S. Department of Defense during contract negotiations.

The U.S. government claims that Lockheed Martin violated the False Claims Act and the Truth in Negotiations Act—a 1962 law requiring government contractors seeking sole-source (non-competitive) contracts to disclose all cost data used in their pricing proposals.

Lockheed Martin, the largest Pentagon contractor, previously paid US$11.3 million (RM50.1 million) to the U.S. Department of Defense for undisclosed cost and pricing data.

The U.S. government argues that if Lockheed Martin officials had provided accurate data, the F-35 Joint Program Office would have awarded contracts at lower prices, according to a Department of Justice statement.

As of 2024, Lockheed Martin has produced and delivered over 1,000 F-35 fighter jets to the United States and its allies.

In 2024 alone, the company successfully delivered 110 units, achieving its highest target for the year.

The F-35 program comprises three main variants:

1. F-35A – A conventional takeoff and landing (CTOL) variant used by the U.S. Air Force.

2. F-35B – A short takeoff and vertical landing (STOVL) variant used by the U.S. Marine Corps and other international operators.

3. F-35C – A carrier-based variant designed for U.S. Navy operations.

The F-35 is designed to replace aging fighter aircraft such as the F-16 Fighting Falcon, F/A-18 Hornet, and AV-8B Harrier II, aiming to deliver enhanced combat capabilities and versatility.

The cost of an F-35 fighter jet varies by variant:

• F-35A: US$77.9 million (RM345.7 million) per unit

• F-35B: US$101.3 million (RM448 million) per unit

• F-35C: US$94.4 million (RM419 million) per unit