Lockheed reaches 10-year agreement with the Pentagon covering 850-plus F-35s

The framework covers US and international orders across Lots 21-30 at a continued production rate of 156 jets annually.

Lockheed Martin has reached a sweeping deal with the Pentagon for the next 10 years of production for the F-35 stealth fighter.

The framework agreement announced on 22 October covers a minimum of 850 aircraft for the US military, plus options for international customers. The fifth-generation strike fighters will be delivered as part of F-35 Lots 21-30, maintaining Lockheed’s full production rate of 156 jets annually.

“This multi-year framework strengthens the way we can plan and invest in the F-35 enterprise,” says Lockheed chief executive Jim Taiclet. “With the greater certainty that comes from the US government’s transformative approach to F-35 production and sustainment, we can make the upfront investments needed to expand capacity, improve efficiency, and build a more resilient supply chain.”

Although a framework has been agreed to, key terms of the deal are not yet finalised, including pricing and schedules. Upon reaching a final deal, the Pentagon will still have to issue a formal contract award. Congressional lawmakers will also have to approve multi-year negotiating authority for the Pentagon’s F-35 Joint Program Office.

“We have fundamentally changed how we stabilise the American defence industrial base to produce at speed and scale,” says under secretary of war Michael Duffey. “By aligning financial incentives with actual performance, we are ensuring our warfighters are equipped with the lethal capabilities they need to fight and win.”

Lockheed says the 10-year arrangement would “fulfil the government’s imperative for a predictable, affordable, and resilient” fighter manufacturing enterprise. The ability to enter into long-term contracts with suppliers and lock in prices will “save taxpayers billions of dollars” over the F-35’s lifecycle, the company adds.

The proposed framework also includes initial spares and 10 years of modification kits and sustainment. OJ Sanchez, president of Lockheed’s Aeronautics unit, says this will improve readiness and availability across the F-35 fleet.

“This, in addition to the investments Lockheed Martin is making to the global spares pool, will directly translate into higher mission-capable rates and a more resilient supply chain,” he says.

Notably, the Pentagon says Lockheed will provide at least $7 billion in internal company funds to support the F-35 programme as part of the deal.

The worldwide F-35 fleet currently sits at some 1,375 jets in active service.

The post Lockheed reaches 10-year agreement with the Pentagon covering 850-plus F-35s first appeared on FlightGlobal.

Source: www.flightglobal.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.