House Defense Bill Makes F-35 Contracts Fixed-Price

Law360, New York (December 14, 2011, 10:18 PM EST) -- The U.S. House of Representatives on Wednesday passed a 2012 defense funding bill that makes future federal purchases of F-35 Joint Strike Fighters, plagued by budget overruns and delays, subject to fixed-price contracts and hold contractor Lockheed Martin Corp. liable for any unexpected additional costs.

The bill, which passed by a 283-136 vote, prohibits the U.S. Department of Defense from signing "fixed-price incentive firm target" contracts that, despite their name, include target profits for Lockheed and charge cost overruns to the government.

The ban was included...
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