FORT WORTH, Texas, Oct. 29, 2019 /PRNewswire/ -- The F-35 Joint
Program Office and Lockheed Martin (NYSE: LMT) finalized a
$34 billion agreement for the
production and delivery of 478 F-35s at the lowest aircraft price
during the history of the Program. This contract includes all U.S.,
International Partners and Foreign Military Sales aircraft in Lots
12, 13 and 14.
In the agreement, the F-35 Enterprise meets and exceeds its
long-stated cost reduction targets for each variant – and the F-35A
unit price, including aircraft and engine, is now below
$80 million in both Lot 13 and Lot
14, the F-35A unit cost represents an estimated overall 12.8
percent reduction from Lot 11 costs for the conventional landing
variant, and an average of 12.7 percent savings across all three
variants from Lot 11 to 14.
"Driving down cost is critical to the success of this program. I
am excited that the F-35 Joint Program Office and Lockheed Martin
have agreed on this landmark three-lot deal. This agreement
achieves an average 12.7 percent cost reduction across all three
variants and gets us below $80
million for a USAF F-35A by Lot 13 - one lot earlier than
planned," said Air Force Lt. Gen. Eric
Fick, F-35 Program Executive Officer. "This $34 billion agreement is a truly historic
milestone for the F-35 Enterprise."
The agreement includes 291 aircraft for the U.S. Services, 127
for F-35 International Partners, and 60 for F-35 Foreign Military
Sales customers. Price details include:
Variant
|
Lot
12
|
Lot
13
|
Lot
14
|
% Reduction
from Lot 11*
|
F-35A
|
$82.4M
|
$79.2M
|
$77.9M
|
12.8%
|
F-35B
|
$108.0M
|
$104.8M
|
$101.3M
|
12.3%
|
F-35C
|
$103.1M
|
$98.1M
|
$94.4M
|
13.2%
|
*Please note:
Final prices for F-35 variants following adjustments for
Congressional plus-ups and other contractual settlements are as
follows: F-35A - $89.3M; F-35B - $115.5M; and F-35C -
$108.8M.
|
"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 5th Generation F-35 to equal or less than 4th Generation legacy
aircraft," said Greg Ulmer, Lockheed
Martin, F-35 Program vice president and general manager. "With the
F-35A unit cost now below $80 million
in Lot 13, we were able to exceed our long-standing cost reduction
commitment one year earlier than planned."
The sub $80 million unit recurring
flyaway cost for an F-35 represents an integrated acquisition price
for the 5th Generation Weapon System. With embedded
sensors and targeting pods, this F-35 unit price includes items
that add additional procurement and sustainment costs to legacy
4th Generation aircraft.
Program Progress
With more than 450 aircraft operating from 19 bases around the
globe, the F-35 is playing a critical role in today's global
security environment. More than 910 pilots and 8,350 maintainers
have been trained, and the F-35 fleet has surpassed more than
220,000 cumulative flight hours. Eight nations have F-35s operating
from a base on their home soil and seven Services have declared
Initial Operating Capability.
In addition to strengthening global security and partnerships,
the F-35 provides economic stability to the U.S. and International
Partners by creating jobs, commerce and security, and
contributing to the global trade balance. The F-35 is built by
thousands of men and women in America and around the
world. With more than 1,400 suppliers in 46 states and
Puerto Rico, the F-35 Program
supports more than 220,000 direct and indirect jobs in the U.S.
alone. The Program also includes more than 100 international
suppliers, creating or sustaining thousands of jobs.
For additional information, visit our website:
https://www.f35.com/.
About Lockheed Martin
Headquartered in Bethesda, Maryland, Lockheed Martin is a
global security and aerospace company that employs approximately
105,000 people worldwide and is principally engaged in the
research, design, development, manufacture, integration and
sustainment of advanced technology systems, products and
services.
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SOURCE Lockheed Martin