The agreement covers 470 new F-35 jets over three separate contracts, known as Lots 12-14.
The agreement, once finalised, will represent the largest F-35 production contract and the lowest aircraft prices in programme history.
The final contract will cover all Lot 12 aircraft, with priced options for Lots 13 and 14, say Lockheed Martin.
The unit price for all three F-35 variants was reduced on average 15% from Lot 11 to 14, and the agreement includes an F-35A unit cost below $80 million in Lot 13.
“This is a truly historic milestone for the F-35 Enterprise. The F-35 Joint Program Office and Lockheed Martin team have come to agreement on this landmark three-lot deal that achieves an average ~15% unit cost reduction and results in a less than $80M F35A in Lot 13 – one year earlier than planned,” said Vice Admiral Mathias Winter, F-35 Program Executive Officer.
“This ~$34B agreement marks the largest procurement in the history of the Department and provides a best value for our warfighter and taxpayer, incentivizes industry to continuously improve their performance and achieves the lowest F-35 unit prices per aircraft to date.”
“With smart acquisition strategies and a relentless focus on cost reduction, the F-35 enterprise has successfully reduced procurement costs of the 5th Generation F-35 to equal or less than 4th Generation legacy aircraft,” said Greg Ulmer, Lockheed Martin’s vice president and general manager of the F-35 program.
“Beating our long-stated goal and delivering an F-35A below $80 million in Lot 13 is a testament to our joint government and industry team – and we look forward to working with the Joint Program Office to finalize the agreement.”