The Department of Defense today notified the General Electric/Rolls Royce Fighter Engine Team (FET) and the Congress that the F136 Joint Strike Fighter (JSF) engine contract has been terminated.
On March 24, 2011, Under Secretary of Defense for Acquisition, Technology and Logistics Ashton Carter directed the F-35 JSF contracting officer to issue an order to the FET to stop work on the F136 development contract. The stop work order ended the expenditure of $1 million per day on an extra engine that the DoD has assessed as unneeded and wasteful. The stop work order was put in place pending final resolution of the extra engine's future in Congressional action on the fiscal 2011 budget.
Subsequently, H.R. 1473, the Department of Defense and Full-Year Continuing Appropriations Act for 2011 was passed by both houses of Congress and signed by the President on April 15, 2011. H.R. 1473 contains no funding for the F136 engine.
Following this action, Carter directed the JSF Joint Program Office to cease all activity on the F136 development, and the JSF contracting officer determined to terminate the F136 contract.
The FET has been instructed to preserve and deliver government property. The Defense Contract Management Agency will assume responsibility for termination settlement.
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