During the committee’s closed-door markup of the defense authorization bill in June, McCain offered an amendment that would have put the F-35 on probation on December 31 because of cost hikes. The fighter would be terminated a year later if the program’s price tag remained 10 percent or more above Lockheed Martin’s target cost.
The committee split, 13-13, and the amendment failed to make it into the bill. But McCain has signaled that he wants to take his fight to the full Senate.
“We’ll revisit it on the floor,” McCain told reporters in June. The committee’s tied vote was “ample testimony to the lobbying power of Lockheed Martin. That’s all it was.”
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In his letter, Lynn said that the government is responsible for paying for the increases under the cost-plus-incentive fee contracts negotiated for the first three lots of aircraft. After problems forced the Pentagon to restructure the program last year, defense officials negotiated a fixed-price contract for the fourth lot of fighters.
If all four congressional defense committees do not sign off on the reprogramming, the Pentagon will have to move money within the F-35 accounts, including potentially siphoning money from three of the Air Force planes planned for this year, Lynn wrote.
Another approach could be cutting funds for tooling, sustainment, and spare parts for the fifth lot of aircraft, which Lynn said would have the “undesirable effect” of increasing the program’s costs in the future.