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.

8
Leave a Reply

avatar
7 Comment threads
1 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
7 Comment authors
Peter BezemerexpatHerodotusAlfred CraneSteve Taylor Recent comment authors
  Subscribe  
newest oldest
Notify of
Mark
Guest

Getting paid to reduce costs. The world is mad…

maurice10
Guest

Yes, they have been successful and saved $90 million!!!

Herodotus
Guest

And of course, American industry is not subsidised! That only happens in unfair Europe!

Steve Taylor
Guest

It goes on across the West in all spheres.

It is frightening how many large companies get money from governments in contracts like this one and in ‘grants’. Of course it is we the tax payer who pays…….

Alfred Crane
Guest
Alfred Crane

To make the planes cheaper, introduce competition.

They say they want a single platform to reduce the need for separate training programs, supply chains, maintenance specialists, etc. However, I’m guessing the extra cost in training would be paid for by lower purchase prices due to competition. The YF-23 would be a nice thing to have right now.

Alfred Crane
Guest
Alfred Crane

Introduce competition. YF-23

expat
Guest
expat

That’s the problem when you don’t have competition for product. If you follow the shipbuilding threads on here most commenters think its fine, UK Government should single source and provide jobs.

Peter Bezemer
Guest

Aren’t cost savings self-funding?