Press Release: Audit of the DoD’s Oversight of Contractor Performance for the F-35 Joint Strike Fighter Sustainment Contracts (Report No. DODIG-2026-039)

The Department of Defense Office of Inspector General (DoD OIG) released its "Audit of the DoD's Oversight of Contractor Performance for the F-35 Joint Strike Fighter Sustainment Contracts."

The DoD OIG found that the F-35 Joint Program Office (JPO) did not consistently hold Lockheed Martin accountable for poor performance related to F-35 sustainment. Specifically, the JPO did not include aircraft readiness performance metrics in the contract, failed to enforce material inspection and government property reporting requirements, and did not effectively use contracting officer's representatives for oversight.

As a result, the DoD paid Lockheed Martin $1.7 billion without an economic adjustment, despite the Full Mission Capable, Mission Capable, and Air Vehicle Availability rates not meeting the minimum military service requirements. The average Air Vehicle Availability rate for all F-35 aircraft in FY 2024 was 50 percent, meaning the aircraft were not available to fly half of the time.

The DoD OIG recommended that the Under Secretary of Defense for Acquisition and Sustainment and the F-35 JPO Program Executive Officer address these deficiencies. Key recommendations from the report include incorporating incentive metrics into the contract, aligning the responsibilities of contracting officers' representatives, and evaluating and adjusting staffing levels at all bases requiring F-35 oversight.

The DoD OIG will continue to monitor the DoD's progress toward full implementation of these recommendations.