A recent audit by the US Defence Department's Office of the Inspector General has exposed critical shortcomings in the F-35 fighter jet program, revealing that aircraft availability averaged just 50 per cent throughout fiscal year 2024.

This figure fell 17 percentage points short of the minimum performance threshold set by military services, primarily due to maintenance lapses by Lockheed Martin, the prime contractor. The report attributes these failures to the F-35 Joint Program Office (JPO) not holding Lockheed adequately accountable for sustainment performance.

The audit pinpointed specific contractual deficiencies in the Air Vehicle Sustainment (AVS) agreement, including the absence of aircraft readiness metrics, financial incentives, or penalties for non-compliance.

Additionally, the JPO neglected to enforce material inspection protocols and government property reporting obligations, undermining oversight mechanisms. Contracting officer representatives were also underutilised, exacerbating gaps in monitoring Lockheed's execution.

Despite these pervasive issues, the Pentagon disbursed approximately $1.7 billion to Lockheed Martin without applying any economic penalties or adjustments.

This payment occurred even as key metrics—such as full mission capable, mission capable, and air vehicle availability rates—failed to meet baseline requirements. The watchdog criticised this as a direct consequence of weak contract enforcement, allowing poor performance to go unpunished.

The F-35 remains the Pentagon's most ambitious acquisition endeavour, with lifetime costs now exceeding $2 trillion for procurement, operations, and sustainment. This escalation stems from extended service life projections to 2088, inflationary pressures, and rising sustainment expenses estimated at $1.58 trillion. Procurement alone accounts for around $422 billion, yet persistent readiness shortfalls continue to erode the program's value.

Ongoing challenges include depot capacity constraints, spare parts shortages, and reliability issues across 17 of 24 key metrics as of recent assessments.

While the program has achieved some efficiencies, such as $84 billion in lifetime savings through JPO initiatives, deeper reforms are needed to curb costs. Defence Secretary Pete Hegseth has reportedly intensified scrutiny, amid broader concerns over the jet's mission readiness.

The Inspector General issued targeted recommendations to the Under Secretary of Defence for Acquisition and Sustainment and the F-35 JPO Program Executive Officer. These include embedding incentive metrics in future contracts, clarifying contracting officer responsibilities, and reassessing staffing at F-35 bases. Implementing such measures could enhance accountability and drive improvements in fleet availability.

Lockheed Martin has not yet issued a formal response to the audit findings, though prior statements emphasise collaboration with the government to bolster readiness through 2088.

The revelations coincide with growing international interest in the F-35, including potential markets like India, where sustainment woes could influence procurement decisions. For the US military, addressing these systemic flaws is imperative to restoring the stealth fighter's operational edge.

Inspector General - U.S. Department of Defence