Yet the Pentagon authorized a $1 billion cash payment to Lockheed in early August,Defense News reported August 12, five months earlier than Lockheed expected and for $100 million more than Lockheed’s claimed shortfall.This is fraud.
Furthermore, the payment – reportedly made under an existing undefinitized contract action (UCA), has not been made public.
Joe DellaVedova, spokesman for the F-35 Joint Program Office (JPO), told Defense News that “with what we have provided, Lockheed will be able to continue the LRIP 9 production without bearing any undue burden.”
DelleVedova did not reply to an Aug 15 e-mail asking for clarification.
The cash payment to Lockheed appears all the more surprising that the company apparently does not have any cash-flow problems.
For the first half of the year, Lockheed posted an operating profit of $2.86 billion, dwarfing its claimed $900 million shortfall on the F-35. Lockheed also said it “generated cash from operations of $1.5 billion,” so it was hardly pinched for cash, especially as its F-35 sales increased -- during just the second quarter -- by $390 million, and its profit by $60 million.
This is criminal.
This is corporate welfare.
Everyone associated with this program is getting smeared because of it. Fanboys should be proud. You're not only getting used by the Generals, F-35 program, Lockheed Martin but now you can add shareholders to the list. You're being whored out.