Summary
- Pentagon withholding final F-35 payment until TR-3 update completed
- TR-3 update includes better software, memory, displays for F-35
- Lockheed resumes deliveries after compromise on TR-3, aims to produce 156 jets per year
While the advanced F-35 Joint Strike Fighter deliveries may have resumed, the Pentagon is withholding the final $5 million payment for each aircraft. Lockheed will only get the final payment after it has completed the Technology Refresh 3 (TR-3) update. Issues with the update caused the Pentagon to refuse delivery of the F-35 for a year, with over 100 F-35 jets left parked around Lockheed facilities. A compromise was finally reached, and Lockheed has resumed deliveries.
Pentagon to withhold final F-35 payment
The Pentagon is now taking delivery of the F-35 without the TR-3 fully completed. On Thursday, the F-35 Joint Program Office stated that Lockheed must complete the TR-3 for these jets before receiving the final $5 million. It is likely to take months for the issue to be resolved. Breaking Defense notes, “TR-3 jets delivered for now are reserved for training, and a subsequent software patch expected to enable full combat capability is anticipated next year — though the exact figure for the withholdings was not clear.”
“We have coordinated the terms and conditions with Lockheed Martin. As a portion of the agreement, approximately $5 million per aircraft is being withheld and will be released as combat capability is delivered.” – F-35 Joint Program Office spokesman
TR-3 includes software and hardware improvements with better computer memory, better displays, and greater processing power (F-35s may have more in common with a computer than a WW2-era fighter). Lockheed stated in July that, due to the delivery pause, it would take between 12 and 18 months to deliver the many F-35s parked around its premises.
Export countries like Denmark also take delivery of F-35s without the TR-3 completed so they don’t fall behind in their transition from F-16 jets. It is unclear if Denmark and other countries are likewise withholding any payments. The F-35 program constitutes 27% of Lockheed’s sales.
Lockheed continues to produce and deliver F-35s
Lockheed recently announced that it had delivered the 1,000th F-35 fighter jet. The company is expected to produce them at a stable rate of 156 jets per year, although production delays are likely to see only 75 to 110 F-35s produced in 2024. According to Reuters, CEO Jim Taiclet stated in July, “The F-35 remains a top priority, and we recently delivered the first TR-3 configured aircraft to the customer and anticipate deliveries for 2024 to meet our expected range of 75-110 F-35s.”
Separately, Lockheed has just rolled out the first of 32 F-35As destined for Poland. Poland is rapidly rearming due to the Russian invasion of neighboring Ukraine. It has also purchased 48 South Korean KAI T-50 Golden Eagle light multirole fighters (partly because they could be delivered much quicker).