Supply chain issues have hit the Pentagon after Lockheed Martin said it will deliver fewer F-35 fighter jets next year.
The billion dollar defense company based in Maryland said that it has revised its delivery schedule due to pandemic-related production constraints.
According to the Pentagon's F-35 program office, seen by Bloomberg, the company was scheduled to deliver between 158 to 163 of the fighter jets in 2022.
However, in a new released distributed on Monday, the company has projected it will deliver between 151 to 153 jets next year, and a further 156 in 2023 and each year thereafter 'for the foreseeable future'.
Lockheed Martin's statement said that the production revision for lots 12 to 14 'ensures predictability and stability in the production process while recovering the aircraft shortfall realized over the last year during the COVID-19 pandemic.'
According to the announcement, the largest U.S. defence contractor is expected to deliver between 133 to 139 aircraft this year.
Supply chain issues have hit the Pentagon after Lockheed Martin said it will deliver fewer F-35 fighter jets (pictured, file photo) next year
Next month, the U.S. Defense Department is expected to decide on a new schedule for a major milestone in the $398 billion acquisition program - the Pentagon's most expensive - as it is meant to carry out a one-month stimulation exercise.
The exercise is set to test the F-35 against most advanced air defences and aircraft in the possession of foreign advisories, and is a step required to make a decision on full-rate production, Bloomberg reported.
Richard Aboulafia, aviation analyst with Teal Group, told the business news outlet in an email that the revised schedule: 'shows the production constraints and supply chain disruptions resulting from the pandemic, and probably other causes.
'Stalling out at 156 per year' (after 2022) 'isn't terrible, but it isn't the 170-plus we were expecting in the next few years.'
In a July report from the Government Accountability Office (GAO) on F-35 support a maintenance said that the program planned to deliver 158 aircract deliveries in 2021, as of April.
But the report added that almost all of the F-35s delivered by Lockheed Martin had been late, and noted that the company 'is not projected to deliver all 158 aircraft, according to program officials.'
Despite this, 'the F-35 program expects to produce a high number of aircraft in 2022,' the GAO said at the time.
'The most aircraft the contractors have delivered in one year has been 134, which they accomplished in 2019, before many of the supply chain challenges were present,' it added.
Pictured: U.S. Air Force Lockheed Martin F-35 Lightning stealth fighter flies over the San Francisco Bay in San Francisco, California on October 13, 2019
At one point, the program had planned to deliver 167 F-35s in 2022, 'which is more than the contractors have ever delivered and 47 more aircraft, and 39% greater, than it delivered in 2020,' the watchdog said in the report.
As recently as this month, the Pentagon awarded Lockheed Martin annualized contracts worth up to $6.6 billion to support operations and sustainment of the global F-35 fleet, its F-35 Joint Program Office announced on September 13.
The new air vehicle sustainment contract is for fiscal year 2021, with options for years 2022 and 2023, and is intended to reduce sustainment costs, the office said.
Pictured: CEO of Lockheed Martin, Jim Taiclet. The company is by far the U.S. government's largest contractor
Separately, Lockheed said that the contract would include supporting base and depot maintenance, pilot and maintainer training while also covering supply chain management for part repair and replenishment.
'These contracts represent more than a 30% reduction in cost per flying hour from the 2020 annualized contract, and exemplify the trusted partnership and commitment we share to reduce sustainment costs and increase availability for this unrivaled 5th generation weapon system,' Bridget Lauderdale, Lockheed Martin vice president, said.
In the list of the top 100 Contractors of the U.S. federal government, released in 2020, Lockheed Martin was by far-and-away the most awarded company, with more than double the amount of dollars obligated than the company second in the list.
The company was obligated $76 billion dollars in 2020, making up almost 13.5% of total amount obligated by the U.S. Federal Government. In 2019, the U.S. Government was responsible for almost 70 percent of the company's revenue.
In terms of aircraft, in addition to the F-35 jet, the company provides C-130 Hercules, F-16 Fighting Falcon and F-22 Raptor to the Pentagon.
It also supplies missiles, including the Hellfire missile, as well as helicopters such as the Black Hawk and Seahawk helicopters and space weapons.
It is unclear whether other weapons systems or military hardware delivered by Lockheed Martin will be delayed as a result of supply chain issues.
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