WASHINGTON, Feb. 11 (UPI) -- A Lockheed Martin executive on Monday strictly limited U.S. Air Force access to information about the C-130J aircraft program, which the service plans to terminate.
The directive came in an electronic message from C-130J Chief Systems Engineer Michael A. Reed, who wrote that after meeting with Lockheed's C-130J project leaders, he had decided to "withhold any requests for data that come from the (Air Force System Program Office) or anyone else that is considered non-contractual until requests are levied by a contracts letter."
No one in the Air Force not directly in the contracting office -- which actually cuts the check to Lockheed -- will be entitled even to courtesy copies of letters, often sent to keep various offices appraised of new developments in the program.
"This action has been taken because the recent flurry of informal requests for information from the SPO has exercised (busied Lockheed Martin) employees from Marietta to Fort Worth.
"Until further notice there will be but one avenue for information about the C0130J, and that will be by contracts letters," states the e-mail.
Reed did not respond to request for comment.
The e-mail was obtained by the Project on Government Oversight, a private watchdog organization.
The C-130J program stands to lose up to $5 billion if all the cuts the Pentagon wants go into effect. Lockheed, however, has powerful friends on Capitol Hill who have already said they opposed the Pentagon's plan to cut more than 70 C-130Js out of the budget over the next five years.
Two dozen senators and several representatives signed a letter to President George W. Bush in January calling the proposed cut "ill-advised and untimely." They said Reserve and Guard units in multiple states would not be able to mobilize for lack of planes, and said the termination off the contract would cost at least $800 million.
They asked the decision be delayed until after the Pentagon completes two major studies on requirements later in 2005. The Pentagon forged ahead, and several senators have promised to take the fight to the floor of Congress when the budget is debated.
Also Friday, the Air Force grounded 30 C-130E versions of the cargo plane and put 60 C-130Hs on restricted flight status, citing cracking and metal fatigue near the wings.
The C-130J is a faster, longer-range version of the older aircraft with better avionics and communications gear and was specifically designed to replace the aging E and H models in a novel commercial sale deal. The aircraft was initially developed for the British military and was sold to the U.S. Air Force as an "off-the-shelf" product for which price was the only negotiable item.
In July, the Pentagon's inspector general reported the C-130J aircraft did not meet contract specifications and therefore cannot perform its operational mission. The Air Force has conditionally accepted 50 C-130J aircraft at a cost of $2.6 billion.
Last month, the Pentagon's independent testing office gave the C-130J a similarly failing grade, finding the aircraft neither operationally effective nor suitable for the mission it is supposed to fill.
POGO contends Lockheed's latest effort at keeping information from the Air Force is just a continuation of past practice. It also released a memo dated October 1998 in which Lockheed said it would not allow the Air Force to share cost data gathered at a meeting at its Marietta, Ga., headquarters with the Air Force Audit Agency or the Defense Contracting Management Command, both of which charged with reviewing cost data for Pentagon contracts.
Lockheed wrote: "We are not trying to hide anything, merely attempting to preserve the commerciality of the program."
"We believe that the facts will show that the commercial item contract is a very good deal for the (U.S. government) and we hope that the program discussions will result in a win-win way forward for the U.S. (Air Force) and Lockheed Martin," stated Gene Elmore, vice president of the Hercules program.
