Graham Warwick/WASHINGTON DC

A battle is brewing over funding for the US/UK Joint Strike Fighter (JSF) concept demonstrator programme. Despite being at least $100 million over budget, Lockheed Martin does not appear to want the ban lifted on spending company funds on the programme, for fear that Boeing will invest heavily on redesigning its JSF contender.

Lockheed Martin, responding to reports that it is over budget, says it will "-execute the JSF concept demonstration phase-while holding the current schedule and performing within current contract funding." A high-ranking industry source says the statement is an effort to head off a move by Boeing to make the concept demonstration a cost-sharing effort so that it can spend company funds maturing its design.

Boeing unveiled a revised JSF configuration early this month, admitting that it was unable to meet the latest requirements with its original delta-wing design. While claiming the design was revised within the budget allowed for maturation of the JSF preferred weapon system concept (PWSC), Boeing admits it has proposed to the JSF programme office several company-funded independent research and development (IRAD) projects that would help reduce the design's risk.

The ban on contractors investing their own money in the concept demonstrator phase was intended to prevent the companies bankrupting themselves to win what is the only new US fighter programme on the horizon.

Rules also prevent IRAD funds being spent on specific programmes, but Boeing says it has proposed generic technology projects that it says would be "relevant" to the JSF.

Both teams are working under cost-plus contracts worth some $1.2 billion, with roughly two thirds earmarked for the concept demonstrator aircraft and one third for evolution of the PWSC. Lockheed Martin's overruns are on the concept demonstrator part of the contract and are believed to be divided roughly equally between Skunk Works accounting errors, Rolls-Royce Allison lift fan cost increases and costs associated with other new technologies.

The source says Lockheed Martin believes Boeing would benefit more from going to a cost-sharing contract, because its revised design is less mature. Lockheed Martin, which claims to have solved all technical issues with its X-35 concept demonstrator, says it is "extremely close" in design to its current PWSC.

Boeing's X-32 demonstrator represents an outdated design, but the company maintains that it is still relevant to reducing the risk in its PWSC.

Source: Flight International