Agreement between Pentagon and Lockheed Martin for cost reduction of the new F-35 lot

(To Lockheed Martin)
02/10/18

The US Department of Defense and Lockheed Martin have finalized the 11,5 billions of dollars contract related to the production and delivery of 141 F-35 aircraft, at the lowest unit price achieved in the history of the program. 

The cost of an F-35A was reduced for the eleventh consecutive year. The unit cost, which includes the aircraft, engine and fees, is $ 89,2 million, 5,4% less than the previous $ 94,3 million of LRIP 10 Lot (Low-Rate Initial Production).

For the 11th production batch (LRIP 35), the unit cost of an F-115,5B short take-off and vertical landing fighter reached $ 5,7 million, a reduction of 122,4% from the previous $ 10 million of the LRIP 35. Finally, the unit cost of the embarked variant F-107,7C dropped to $ 11,1 million, 121,2% less than the previous $ 10 million of LRIP 11. The agreement for LRIP91 covers 28 aircraft for the US Armed Forces, 22 for the Program's International Partners and 35 for States that are purchasing the F-2019 in Foreign Military Sales. Deliveries will begin in XNUMX.

For the 11th production batch (LRIP 35), the unit cost of an F-115,5B short take-off and vertical landing fighter reached $ 5,7 million, a reduction of 122,4% from the previous $ 10 million of the LRIP 35. Finally, the unit cost of the embarked variant F-107,7C dropped to $ 11,1 million, 121,2% less than the previous $ 10 million of LRIP 11. The agreement for LRIP91 covers 28 aircraft for the US Armed Forces, 22 for the Program's International Partners and 35 for States that are purchasing the F-2019 in Foreign Military Sales. Deliveries will begin in XNUMX.

"Cost reduction is fundamental to the success of this programSaid Vice Admiral Mat Winter, program executive officer for the F-35. "We are respecting the commitment to get the best price for taxpayers and the armed forces. The agreement for the next batch of F-35 represents a fair deal for the US government, international partners and industry. We remain focused on pushing forward the initiatives aimed at reducing the cost of hunting and guaranteeing maximum efficiency".

Thanks to stealth technology, supersonic speed, advanced sensors, weapon capacity and the ability to be deployed in every part of the world, the F-35 is the most advanced fighter ever built, developed to allow men and women in uniform to complete the missions in complete safety. More than just a hunt, F-35's ability to collect, analyze and share data makes it a powerful force multiplier capable of enhancing all the assets, both air and ground involved in the field.

"The agreement represents an important step forward in the program. We continue to increase production rates, reduce costs, and provide advanced skills to our men and women in uniformSaid Greg Ulmer, Lockheed Martin vice president and general manager of the F-35 program. "As production increases and additional cost reduction initiatives are implemented, we are in line with our goal of bringing the cost of an F-35A to $ 80 million by 2020, costing less than or equal to that of a previous generation aircraft, while providing a huge advantage in terms of operational capabilities."

The progress of the program

This latest agreement shows the progress and level of maturity achieved by the program, while the industry and the government are considering how to acquire the next three production batches, with the aim of further reducing costs.

With over 320 aircraft already operating in 15 bases around the world - the F-35 already plays a vital role in global security. Besides 680 pilots and 6.200 maintainers have been trained to intervene on the aircraft and the F-35 fleet has passed 155.000 flight hours globally. The reliability of the weapon system continues to increase thanks to the combined enhancement of hardware and software capabilities.

In addition to its advanced capabilities, the F-35 program contributes to the economic stability of both the United States and the Allied Nations, creating jobs, new contracts and greater security, fueling global economic interchange. The F-35 program involves women and men in the United States and around the world: with over 1.500 companies supplying 46 states and in Puerto Rico, the program directly and indirectly supports over 194.000 people only in the United States. In addition, the program affects over 100 suppliers and contributes to the creation of hundreds of jobs internationally.

(images: Lockheed Martin)