New F-35s Get Green Light for Combat Training Amid Lockheed Payment Withholdings.

The newest batch of F-35 Joint Strike Fighters, equipped with upgraded software, are now capable of more advanced training missions. However, the Department of Defense (DOD) is withholding millions of dollars in payments to Lockheed Martin until these jets can prove they are combat-ready.

Lockheed Martin, in partnership with the F-35 Joint Program Office (JPO), announced that the latest F-35s have received software updates that enhance their training capabilities, moving beyond the initial basic training functionalities that were previously available. These enhancements are part of the Technology Refresh 3 (TR-3) upgrades, which are essential for the jets' full operational potential. However, despite these advancements, the government is holding back approximately $5 million per jet until the F-35s can be certified for combat.

The TR-3 Software Challenge

The delivery of the TR-3-equipped F-35s had been halted since July 2023 due to issues with software integration and hardware shortfalls. Lockheed Martin continued production during this period, storing the jets at its Fort Worth, Texas, facility while working on a solution. A partial, "truncated" version of the TR-3 software was eventually developed, which allowed the jets to conduct basic training missions, though they remained unsuitable for combat operations.

In July 2024, after the truncated software was deemed sufficient for training purposes, the government resumed accepting deliveries of these F-35s. Despite this progress, the jets are not expected to be combat-ready until 2025, prompting the DOD to withhold a portion of payments to Lockheed Martin as a penalty for the delayed combat capability.

The Importance of TR-3 and Block 4 Upgrades

The TR-3 upgrades are a critical stepping stone toward the more comprehensive Block 4 modernization program, which will significantly enhance the F-35's combat capabilities. Block 4 will introduce improvements such as the ability to carry additional weapons, enhanced target identification, and advanced electronic warfare capabilities. The TR-3's enhancements in display technology, computer memory, and processing power are vital for these forthcoming upgrades.

However, the delays in TR-3's full implementation have caused ripple effects across the F-35 program. The U.S. Air Force, Marine Corps, and Navy have all experienced disruptions in their plans to field these jets, with some units receiving fewer aircraft than anticipated.

Financial Implications for Lockheed Martin

The financial impact on Lockheed Martin is significant, with approximately $5 million being withheld for each jet that fails to meet combat readiness standards. This decision was part of a broader agreement between the government and Lockheed to resume F-35 deliveries despite the ongoing limitations.

The cost of these jets is substantial, with the newest F-35A fighters, flown by the U.S. Air Force, priced at about $82.5 million each. The F-35B, used by the Marine Corps for short takeoff and vertical landing operations, costs around $109 million per unit. The F-35C, designed for carrier operations by both the Navy and Marine Corps, comes in at approximately $102.1 million.

Impact on the Air Force and Beyond

The delays have had tangible consequences for the U.S. Air Force, particularly for its European-based squadrons at RAF Lakenheath in England. General James Hecker, commander of U.S. Air Forces in Europe, noted that the TR-3 delays have led to a slowdown in the number of F-35s arriving at Lakenheath, with fewer than a dozen jets being delayed. Hecker acknowledged that while the current software is sufficient for training, more work remains to be done to achieve full combat capability.

As the TR-3-equipped jets are delivered to training bases, the Air Force plans to transfer combat-capable jets from these bases to operational squadrons like those at Lakenheath. However, until TR-3 is fully operational, the rollout of the Block 4 upgrades will be slowed, delaying the next phase of F-35 modernization.

Andrew Hunter, the Air Force’s acquisition chief, emphasized that the service will not pay full price for jets that have not yet delivered the promised capabilities. “We will not pay for that which we have not yet received,” Hunter stated, highlighting the Air Force's commitment to ensuring value for taxpayer dollars.

Looking Ahead

As Lockheed Martin continues to address the challenges posed by the TR-3 upgrade, the F-35 program remains under intense scrutiny. The DOD's decision to withhold payments underscores the high stakes involved in ensuring that these advanced fighter jets meet their full combat potential. With combat readiness expected in 2025, the pressure is on for Lockheed Martin to deliver on its promises and for the F-35 to solidify its role as the cornerstone of U.S. air superiority in the years to come.