Seeking Alpha

Pentagon to withhold payments to Pratt & Whitney

  • Five percent of all billings to United Technologies' (UTX -0.7%) Pratt & Whitney unit will be held back until the company fixes flaws in a system used to track cost and schedule performance, according to a Defense Department spokesman. The 5% is the maximum that can be held back over such issues.
  • "We have submitted corrective action plans," says Pratt & Whitney, "and are working closely" with the Pentagon's Contract Management Agency.
  • Through August, the Pentagon has withheld $195M in payments to the F-35's prime contractor, Lockheed Martin (LMT -0.5%), over flaws in its contract management systems, but Lockheed was recently informed the amount held back has been reduced to 2% of billings from 5%.
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector