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JSF, Not Offsets, Right Model for Transatlantic Cooperation
The Joint Strike Fighter model should replace the traditional offset
approach in international defense cooperation.
The JSF, not offsets, is the right model for transatlantic cooperation,
argue top Lockheed Martin representatives.
But the aerospace company's leadership is walking a fine line in
making that case and, in parallel, is trying to moderate legislative
provisions being considered in Congress that could make transatlantic
defense cooperation take a turn for the worse.
Concerted lobbying last year caused Congress to abandon strengthened
Buy America provisions. But the House of Representatives' influential
armed services panel is trying again, this time applying tighter
against industries based in countries with offset demands. It has
again raised concerns in and outside the U.S. that transatlantic
defense cooperation is in a death spiral.
Offsets have "never been our preference," says Lockheed
Martin COO and President Robert Stevens. However, he quickly adds
the company will execute offset requirements it is handed, and that
domestically it is telling lawmakers those rules don't always undermine
U.S. employment-the House member's main concern.
But the company has to be judicious in its lobbying efforts. The
main advocate of the legislative changes, Rep. Duncan Hunter (R-Calif.),
also is one of the staunchest supporters of major Lockheed Martin
and other defense programs.
A better model than using offsets is the F-35 JSF, argues Stevens,
who is slated to become Lockheed's CEO in the near future. International
defense relations should "evolve to a best value approach,"
he contends.
Several JSF partners have voiced unhappiness about the approach.
Stevens concedes "the process can be improved," but notes
that anyone who would have thought a complex program such as JSF
wouldn't face such hurdles is naive. Workshare and technology transfer
concerns have headed the list of complaints from non-U.S. program
partners.
Dain Hancock, president of Lockheed Martin Aeronautical, adds that
three years into the F-35 development program, there have been no
instances in which work has had to be slowed because technology
transfer issues weren't resolved. He notes that the government has
established a detailed technology release roadmap to ensure such
delays don't occur. In fact, Stevens adds, such a detailed roadmap
is a model other cooperative efforts should embrace.
—Robert Wall
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