* Pentagon delays F-35 development by 13 months
* Sees additional aircraft purchases if costs come down
* U.S. Air Force sees no alternative to F-35
Source: DTN News / Reuters By Andrea Shalal-Esa
(NSI News Source Info) 
WASHINGTON - March 3, 2010: U.S. Air Force Secretary Michael Donley on Tuesday underscored the Pentagon's commitment to the Lockheed Martin Corp (LMT.N) F-35 fighter program and said the program would likely survive a mandatory live-or-die review triggered by cost overruns on the program.
Pentagon acquisition chief Ashton Carter last week signed an acquisition decision memorandum implementing restructuring steps outlined by top defense officials in recent weeks.
In the Feb. 24 memo, which was first reported by the DODBuzz.com website, Carter said the Pentagon was extending the development phase of the program by 13 months; adding one carrier variant plane for extra testing; and moving a decision about moving into full-rate production to November 2015, when initial operational testing is completed.
Donley told defense reporters the Pentagon was still working through details before notifying Congress about a probable breach of the Nunn-McCurdy cost thresholds that would trigger a review that could lead to the program's cancellation.
But said no "showstoppers" had emerged that could lead to a decision to cancel the program.
There also were no alternatives in the Pentagon's weapons arsenal, he added.
In Carter's memo, he agreed to add $2.8 billion to the development cost of the F-35, and said the Pentagon would withhold $614 million in award fees from Lockheed and the other contractors on the program, Northrop Grumman Corp (NOC.N) and BAE Systems (BAES.L).
Donley said the Pentagon was restructuring its contract with Lockheed to encourage the company to make good its earlier promises on the program and meet the schedule.
He said it was unclear how many additional jets could be purchased of the 122 that were removed from the Pentagon's five-year budget plan.
Carter's memo said the department would request long lead procurement funding for 48 fighter planes in fiscal 2011.
Donley said moves by Lockheed to lower costs on the program would allow the department to buy more aircraft than planned in the fiscal 2011 budget plan, and could allow the military to re-accelerate the now-delayed timetable for moving into full-rate production and operational use of the new planes.
Donley also said he was not aware of any further management changes in the F-35 program "on the government side" after a decision last month to remove Marine Corps Major General David Heinz, who was running the program. He said it was unclear when a replacement for Heinz would be named, but said Senate confirmation was needed since it would now be a three-star position.
Carter and the chief executives of the prime contractors working on the F-35 programs are due to meet at the Lockheed plant in Fort Worth, Texas, later this week.
Donley said the Air Force was considering funding a service life extension program for the Lockheed F-16 fighter planes, given the expected delays in fielding of the F-35, but said not final decisions had been made.
It was not yet clear if any funding for such a program would be added to the fiscal 2011 budget or later budget years, he said.
Source: DTN News / Reuters By Andrea Shalal-Esa
(NSI News Source Info) 
WASHINGTON - March 3, 2010: U.S. Air Force Secretary Michael Donley on Tuesday underscored the Pentagon's commitment to the Lockheed Martin Corp (LMT.N) F-35 fighter program and said the program would likely survive a mandatory live-or-die review triggered by cost overruns on the program.
Pentagon acquisition chief Ashton Carter last week signed an acquisition decision memorandum implementing restructuring steps outlined by top defense officials in recent weeks.
In the Feb. 24 memo, which was first reported by the DODBuzz.com website, Carter said the Pentagon was extending the development phase of the program by 13 months; adding one carrier variant plane for extra testing; and moving a decision about moving into full-rate production to November 2015, when initial operational testing is completed.
Donley told defense reporters the Pentagon was still working through details before notifying Congress about a probable breach of the Nunn-McCurdy cost thresholds that would trigger a review that could lead to the program's cancellation.
But said no "showstoppers" had emerged that could lead to a decision to cancel the program.
There also were no alternatives in the Pentagon's weapons arsenal, he added.
In Carter's memo, he agreed to add $2.8 billion to the development cost of the F-35, and said the Pentagon would withhold $614 million in award fees from Lockheed and the other contractors on the program, Northrop Grumman Corp (NOC.N) and BAE Systems (BAES.L).
Donley said the Pentagon was restructuring its contract with Lockheed to encourage the company to make good its earlier promises on the program and meet the schedule.
He said it was unclear how many additional jets could be purchased of the 122 that were removed from the Pentagon's five-year budget plan.
Carter's memo said the department would request long lead procurement funding for 48 fighter planes in fiscal 2011.
Donley said moves by Lockheed to lower costs on the program would allow the department to buy more aircraft than planned in the fiscal 2011 budget plan, and could allow the military to re-accelerate the now-delayed timetable for moving into full-rate production and operational use of the new planes.
Donley also said he was not aware of any further management changes in the F-35 program "on the government side" after a decision last month to remove Marine Corps Major General David Heinz, who was running the program. He said it was unclear when a replacement for Heinz would be named, but said Senate confirmation was needed since it would now be a three-star position.
Carter and the chief executives of the prime contractors working on the F-35 programs are due to meet at the Lockheed plant in Fort Worth, Texas, later this week.
Donley said the Air Force was considering funding a service life extension program for the Lockheed F-16 fighter planes, given the expected delays in fielding of the F-35, but said not final decisions had been made.
It was not yet clear if any funding for such a program would be added to the fiscal 2011 budget or later budget years, he said. (Reporting by Andrea Shalal-Esa)
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