- 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%.
Pentagon to withhold payments to Pratt & Whitney
Oct 8 2013, 15:23 ET