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Lockheed says Pentagon recertifies cost-tracking system
December 2, 2013 / 6:00 PM / 4 years ago

Lockheed says Pentagon recertifies cost-tracking system

WASHINGTON, Dec 2 (Reuters) - The Pentagon has recertified a cost-tracking system used by Lockheed Martin Corp’s aeronautics division, ending the withholding of progress payments imposed in 2010 after the government identified problems with the system, Lockheed said,.

According to a company statement, the Pentagon’s Defense Contract Management Agency (DCMA) said it agreed to recertify Lockheed’s earned value management system (EVMS), citing a big shift in the company’s approach and its work on correcting past problems.

“Lockheed Martin Aeronautics’ genuine commitment and disciplined approach to correcting EVMS deficiencies has resulted not only in the company regaining its EVMS compliance credentials as a condition for doing business with the Department of Defense, but has fundamentally changed the way it thinks and will manage work in the future,” David Kester, director of the DCMA’s earned value management division, said in the statement.

The Pentagon uses the EVMS to assess the performance of weapons programs, looking at scope, schedule and costs. The DCMA has been critical of Lockheed’s system since 2007 and has been withholding from 2 percent to 5 percent of progress payments on the company’s F-35 fighter jet program since 2010.

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