Lockheed Martin has received a three-year, $90.3M contract modification from the U.S. Navy to identify and implement measures to reduce the cost of the F-35.
The company will aim to complete the cost reduction efforts by June 2022, the Department of Defense said Tuesday:
“Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is awarded a $90,345,180 modification to a previously awarded cost-plus-incentive-fee contract (N00019-17-C-0001). This modification provides for the identification and execution of cost reduction initiatives to reduce the cost of the F-35 Lightning II Air System.
Work will be performed in Fort Worth, Texas, and is expected to be completed in June 2022.
Fiscal 2017 aircraft procurement (Air Force, Navy, and Marine Corps) funds in the amount of $90,345,180 will be obligated at time of award, all of which will expire at the end of the current fiscal year. This modification combines purchases for the Air Force ($44,929,818; 50 percent); Navy ($26,000,000; 29 percent); and the Marine Corps ($19,415,362; 21 percent).
The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.”
The company secured a $1.38B advance acquisition contract in 2017 to obtain long lead materials, components and parts for the F-35 program’s lots 12 to 14.