Auditors: Over 1 million F-35 spare parts lost by DoD and Lockheed
More than 1 million F-35 spare parts worth at least $85 million have gone missing over at least the last five years, according to a new Government Accountability Office report criticizing the program’s supply tracking.
Auditors said that because the government doesn’t have its own system tracking those parts, officials may not truly know how many spare parts are actually in the global spares pool, where they are, or their total value.
As a result, “the full quantity and value of these [lost] spare parts may be significantly higher” than the 1 million tally determined by the main contractor, Lockheed Martin, the document reads.
And disagreements between Defense Department offices and the main F-35 contractor, Lockheed Martin, over how to categorize missing parts are holding up the government’s effort to create its own reliable system to keep track of the parts, the GAO report states.
In short, the F-35 program can’t know whether contractors are properly managing spares, according to auditors, who have tracked losses going to back to 2018.
In a statement to Defense News, Lockheed Martin said the tally of spare parts listed as lost in the report cover the last two decades of the program.
Lockheed Martin said it is working with the F-35 Joint Program Office and the Defense Contract Management Agency to make sure they have the documentation needed to support disposing of components that staff judged to be “excess, obsolete or unserviceable.”
“Lockheed Martin manages F-35 spare part inventory in compliance with contract requirements,” the company told Defense News. “We continue to partner with the Joint Program Office to increase insight into spare part availability and support fleet readiness.”
The F-35′s program office said in an email to Defense News that it also agreed with GAO’s recommendations on ways to improve tracking of spare parts — but said “we know where the vast majority of F-35 spare parts are in the global supply chain.”
The Defense Department office pointed to the Defense Federal Acquisition Regulation Supplement rules that said programs should strive to have their recorded inventories accurate about 95% of the time, and said the F-35 program exceeds that goal.
“At this time, our error rate is around 1%,” the program office said. “While this is considered much better than the government goal of 5%, we will continue to work with the services and our industry partners to improve spare parts accountability and drive readiness for our warfighters.”
The JPO also said that F-35 spare parts are now being tracked through a non-government system, but that it is working with industry to move the data to a government system.
The international F-35 program, which includes the United States and other nations such as the United Kingdom, Norway, Italy, Canada, Israel, Japan and South Korea, has what GAO called a “unique” system for managing its spare parts. All participants in the program worldwide have access to a global pool of spare parts — everything from engines, tires, landing gear and support equipment down to bolts and screws — that the Defense Department owns until a part is installed on a fighter.
https://www.navytimes.com/air/2023/05/30/auditors-over-1-million-f-35-spare-parts-lost-by-dod-and-lockheed/