Lockheed Martin Corp., the No. 1 U.S. defense contractor, is the first company to have payments withheld under a new Pentagon rule intended to correct deficiencies with internal systems that track cost, schedules, accounting and purchases, according to the Defense Department.
The Pentagon’s contract management agency will withhold 5 percent of billings on the next four F-35 jet engine contracts from United Technologies Corp.’s Pratt & Whitney unit, according to a Defense Department spokesman.
Boeing Co. should lose as much as $271 million in government payments for satellite launch services because the No. 2 U.S. defense contractor violated federal accounting rules, the Pentagon’s audit agency said.
Rolls-Royce Holdings Plc was an average of 160 days late last year in delivering equipment needed for the U.S. Marine Corps version of the F-35 fighter to hover and land like a helicopter, according to the Pentagon.
The Defense Department is withholding 5 percent of billings for a Navy helicopter contract until United Technologies Corp.’s Sikorsky Aircraft unit fixes deficiencies with an internal business system, a Pentagon spokesman said.