By Marina Malenic

A stealthy cruise missile being developed by Lockheed Martin [LMT] and plagued by years of test failures will be subjected to one more round of reliability testing this summer after the company makes technical adjustments to the system, the Air Force’s top weapons buyer said last week.

The $6 billion Joint Air-to-Surface Standoff Missile (JASSM) program could face termination if Lockheed Martin does not fix problems that have caused the weapon repeatedly to fail to detonate on impact, David Van Buren, acting assistant Air Force secretary for acquisition, told reporters at a May 15 Pentagon briefing.

“I think that if this next round of missiles does not perform well, that it will not be positive for the program,” he said.

Van Buren said there are “several issues with the reliability of the missile” and its subsystems.

“We’ve been very straightforward with the contractor with regard to the need to improve their performance, he said.

Asked whether Lockheed Martin would be financially responsible for the latest technical adjustments to the missile, Van Buren said: “They have to make whatever corrective actions they’re currently making within the contract terms and conditions, yes.”

The Air Force’s fiscal year 2010 budget request includes no money for JASSM production. Approximately $82 million is budgeted for repairs, with small amounts also requested for two developmental variants of the weapon.

Pentagon officials last week acknowledged continuing problems with JASSM performance but said an operational need has thus far prevented program termination.

A Defense Acquisition Board review of the program had been scheduled for Dec. 5, 2008, but it was postponed by then-Pentagon acquisition chief John Young and has not yet been rescheduled.

JASSM is a precision cruise missile designed for launch from outside area defenses to kill hard and area-type targets. Over $500 million has been spent on the effort since 2007.