Clock Runs Out on F-35 Lot 9 Appeal

Lockheed Martin did not file an appeal with the Armed Services Contract Board of Appeals regarding its dispute with the Pentagon over the F-35 Lot 9 contract. In November, the Pentagon terminated negotiations on the lot and simply imposed a unilateral price, saying talks had gone on too long and there was no resolution in sight. The company had 90 days to file an appeal with ASCBA. However, the company has not yet decided whether it will “pursue other avenues, such as filing a certified claim under the Contract Disputes Act, filing a Request for Equitable Adjustment, and requesting Alternate Dispute Resolution under the JSF [Joint Strike Fighter] Memorandum of Agreement,” a company spokesman said Thursday. Lot 9 deliveries are “independent of the … unilateral contract process,” he said, and Lockheed will deliver the jets in 2017 “as outlined in the program of record.” An undefinitized deal on Lot 10 was set in November and the definitized version, with a final, negotiated price, is expected any day. President Donald Trump has said the lot will cost $600 million less than previously expected.