Lockheed's pay for fighter to come later

BETHESDA, Md., Dec. 29 (UPI) -- Lockheed Martin has been told not to expect $283 million in potential payments for a new jet fighter as soon as the company had expected.

The Pentagon, which gave Lockheed Martin the contract to build its new Joint Strike Fighter, has changed payment schedules to keep "the incentive going for the contractor," a military spokeswoman said.

Specifically, the Pentagon says 20 percent of the award fees, or bonus payments, once set to be paid to Lockheed between 2004 and 2007 will instead be paid between 2008 and 2013, the Washington Post reported Wednesday.

The new payment schedule does not change the nominal value of the deal. Award fees are incentives for a contractor to meet or exceed goals and typically account for a majority of a defense contractor's profits.

The Joint Strike Fighter program has faced delays and cost increases as Lockheed Martin worked to lower the weight of the aircraft and the military changed some of the fighter's specifications.