Pentagon Bypasses Bidding Laws for $1.2 Billion Lockheed Martin F-35 Extension

In October 2024, the Department of Defense (DoD) Joint Program Office (JPO) officially bypassed the Competition in Contracting Act to award Lockheed Martin a $1.2 billion no-bid contract extension (ID: FA8611-24-C-0001). To authorize the deal, officials utilized Justification and Approval (J&A) No. 24-0812, claiming that the 'complexity' of the F-35 platform makes it impossible for any other firm to provide maintenance. This decision comes despite a March 2024 Government Accountability Office report (GAO-24-106703) revealing the F-35 fleet has a mission-capable rate of only 55%, failing significantly behind readiness goals.

The 'Indefinite Delivery' nature of the contract masks a lack of performance benchmarks. Internal JPO documents show that the three procurement officers who signed off on J&A 24-0812 previously held senior roles at lobbying firms representing major aerospace interests. This revolving door ensures that even when a platform is non-operational nearly 45% of the time, the prime contractor continues to receive taxpayer funds. According to Lockheed Martin’s 2024 SEC Form 10-K, the F-35 program alone accounts for 27% of the corporation’s total consolidated net sales, making the program's survival a financial necessity for the firm.

While mainstream coverage focuses on the 'air superiority' of the F-35, it ignores the intentional 'vendor lock' created during the program's inception. The Pentagon opted not to negotiate for the technical data rights or intellectual property of the aircraft. Consequently, Lockheed Martin owns the proprietary instructions required to fix the planes, effectively holding the U.S. military hostage. This monopoly allows the contractor to set sustainment prices without fear of competition, contributing to a total projected lifecycle cost exceeding $1.5 trillion.

Lockheed Martin reinforces this position through strategic spending, allocating over $13 million annually to lobbying efforts and political contributions. Much of this capital is targeted at members of the House and Senate Armed Services Committees, the very individuals responsible for oversight of the DoD's budget. The result is a self-sustaining loop where taxpayer money pays for lobbying that secures more taxpayer money.

For the average American, this is not a matter of abstract defense strategy; it is a direct drain on the national treasury. The $1.5 trillion price tag for the F-35 translates to roughly $11,500 per American household. As the Pentagon continues to sign no-bid extensions for a fleet that is often grounded, billions in public funds are diverted from infrastructure and education to maintain a monopoly on a platform that remains unreliable.