Says Company Will Repay $265 Million In Overages

Lockheed Martin Corp. -- ever-sensitive to any whisper of impropriety when it comes to government contracts -- notified the Pentagon this week it discovered an "inadvertent billing error" on the F-35 Joint Strike Fighter program... and says it plans to repay the overages, to the tune of $265 million.

The Wall Street Journal reports the overbilling dates back to 2002, just after the JSF contract was awarded. The charges pertain to invoices on work performed by Northrop Grumman and BAE Systems, both subcontractors to Lockheed on the JSF.

The Bethesda, MD company -- the military's top contractor -- took pains to make clear those two companies weren't responsible for the overcharges.

Northrop assembles a portion of the F-35's center fuselage, and is involved with many of the aircraft's systems. BAE builds the aft fuselage and empennage assemblies, as well as the aircraft's avionics.

Lockheed said it will soon repay the government for the charges, as well as a soon-to-be-determined amount of interest.

"This error will not impact the program's schedule or budget," said Lockheed Martin spokesman Tom Jurkowsky.

FMI: www.lmco.com