The Pentagon and Lockheed Martin have finalised a $34 billion deal for the next three lots of F-35 Joint Strike Fighters. The deal also sees the cost of all three F-35 variants drop with the F-35A reaching below $80 million.
The $34 billion deal announced by US Undersecretary of Defense for Acquisition and Sustainment Ellen Lord is for the delivery of 478 F-35s including 149 for Lot 12, 160 for Lot 13 and 169 for Lot 14.
According to a contract notice, work will be performed in Fort Worth, Texas (57%); El Segundo, California (14%); Warton, United Kingdom (9%); Cameri, Italy (4%); Orlando, Florida (4%); Nashua, New Hampshire (3%); Baltimore, Maryland (3%); San Diego, California (2%); Nagoya, Japan (2%); and various locations outside the continental U.S. (2%).
291 of the jets are for the US, 127 are for F-35 international partners and 60 are for FMS customers. A total of 351 will be the F-35A conventional take-off and landing variant, 86 will be the F-35B short take-off and vertical landing variant, and 41 will be the F-35C aircraft carrier-launched, according to Lockheed Martin.
Under the terms of the agreement, the per unit recurring flyaway cost of the F-35A will reach less than $80 million by Lot 13, one lot sooner than planned.
The F-35A will be $82.4 million for Lot 12, $79.2 million for Lot 13, and $77.9 million for Lot 14, according to Lockheed. For Lots 12, 13 and 14 the F-35B will cost $108 million, $104.8 million and $101.3 million, respectively and the F-35C will cost $103.1 million, $98.1 million and $94.4 million respectively.
“With smart acquisition strategies, strong government-industry partnership and a relentless focus on quality and cost reduction, the F-35 enterprise has successfully reduced procurement costs of the fifth- generation F-35 to equal or less than fourth-generation legacy aircraft” Greg Ulmer, F-35 program vice president and general manager at Lockheed, said in a statement.