Sen. John McCain (R-Ariz.) called for the federal government to use “incentive fee contracts” in military procurement programs rather than “award fee contracts,” after reports that Lockheed Martin was still receiving bonuses despite not meeting contract goals.
McCain used the example of the F-35 fighter jet as a prime example for a program run amuck.
McCain said that because of challenges the U.S. military faces it could not tolerate these “egregious” cost overruns.
Although a defense hawk, McCain has historically been critical of the lack of oversight of government contracts from the Department of Defense.
McCain's remarks come as the House is expected to begin consideration of its 2015 Defense spending bill later this week.