US Is Withholding $5 Million for Each F-35 Lacking Upgrades (1)

The Pentagon is withholding $5 million from Lockheed Martin Corp. for each F-35 aircraft that doesn’t yet have advanced hardware and software to meet specifications, the Defense Department’s F-35 program office said.

“We have coordinated the terms and conditions with Lockheed Martin,” the program office said in a statement Thursday to Bloomberg News. “Approximately $5 million per aircraft is being withheld and will be released as combat capability is delivered.”

The announcement gives investors, analysts and taxpayers a sense of the cash incentive at stake for the No. 1 defense contractor as it seeks to move beyond a years-long saga ...