McCain calls for 'incentive fee' contracts for F-35 program

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.

ADVERTISEMENT
“When we look at a program such as this, where it exceed its original cost estimates by more than $15 billion and more than five years later of delays and there are still problems with the most expensive weapons system in history … we need to do a lot better and one of the things that has to be done that has not been done is holding people accountable,” McCain said on the Senate floor Monday.

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.

More in Senate

McCain expects Pentagon plan on closing Gitmo

Read more »