Audit of the DoD’s Oversight of Contractor Performance for the F‑35 Joint Strike Fighter Sustainment Contracts

Title Full

Date Issued

Saturday, December 19, 2026

Submitting OIG

Department of War OIG

Agencies Reviewed/Investigated

Department of War

Report Number

DODIG-2026-039

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Report updated under NDAA 5274

Open Recommendations

This report has 7 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
D-2026-0039-D000AT-0001-0001.a.1	No	$0	$0
Rec. 1.a.1: The DoD OIG recommended that the Under Secretary of Defense for Acquisition and Sustainment, in coordination with the Program Executive Officer for the F'35 Joint Program Office modify the F'35 air vehicle sustainment contract to include incentive metrics and associated remedies that closely align with or support the performance requirements outlined in the bilateral Performance'Based Arrangement or obtain a waiver for not including the performance requirements from each Military Service.
D-2026-0039-D000AT-0001-0001.a.2	No	$0	$0
Rec. 1.a.2: The DoD OIG recommended that the Under Secretary of Defense for Acquisition and Sustainment, in coordination with the Program Executive Officer for the F'35 Joint Program Office modify the F'35 air vehicle sustainment contract to include contract requirements that contain specific metrics and associated remedies, including the development of metrics for action requests, property transfer responses, and resolution timelines.
D-2026-0039-D000AT-0001-0001.a.3	No	$0	$0
Rec. 1.a.3: The DoD OIG recommended that the Under Secretary of Defense for Acquisition and Sustainment, in coordination with the Program Executive Officer for the F'35 Joint Program Office modify the F'35 air vehicle sustainment contract to include property clauses the Defense Contract Management Agency considers necessary in future option years.
D-2026-0039-D000AT-0001-0001.b	No	$0	$0
Rec. 1.b: The DoD OIG recommended that the Under Secretary of Defense for Acquisition and Sustainment, in coordination with the Program Executive Officer for the F'35 Joint Program Office enforce the requirement for Lockheed Martin to provide a completed DD Form 250, Material Inspection and Receiving Report, or its electronic equivalent.
D-2026-0039-D000AT-0001-0002.a	No	$0	$0
Rec. 2.a: The DoD OIG recommended that the Program Executive Officer for the F'35 Joint Program Office align the contracting officers representative responsibilities to monitor and report impactful evaluation data on Lockheed Martins performance, including the impact of cannibalization of spare parts on aircraft readiness, and update these responsibilities in the Quality Assurance Surveillance Plan.
D-2026-0039-D000AT-0001-0002.b	No	$0	$0
Rec. 2.b: The DoD OIG recommended that the Program Executive Officer for the F'35 Joint Program Office provide all contracting officers representatives a detailed Performance Work Statement and appropriate access to databases and information required to accomplish effective oversight.
D-2026-0039-D000AT-0001-0002.c	No	$0	$0
Rec. 2.c: The DoD OIG recommended that the Program Executive Officer for the F'35 Joint Program Office coordinate with the Military Services to complete a workforce study to determine appropriate contracting officers representative requirements and staffing levels for the F'35 air vehicle sustainment contract.