News: Agreement Reached on F-35A Price
Published 6 February 2017, 11:46
Latest F-35 LRIP contract
The US Department of Defense and Lockheed Martin have reached an agreement in principle for Low-Rate Initial Production Lot 10 (LRIP-10) for the F-35 Lightning II.
The F-35 LRIP agreement for 90 aircraft lowers the unit price for an F-35A to below $100 million for the first time. The Lot 10 contract represents a US$728 million price reduction compared to the Lot 9 contract and more than a 60% price reduction for the F-35A since the first LRIP-1 contract, a Lockheed Martin statement said.
The statement said: “President Trump’s personal involvement in the F-35 programme accelerated the negotiations and sharpened our focus on driving down the price. The agreement was reached in a matter of weeks and represents significant savings over previous contracts. This is a good deal for the American taxpayer, our country, our company and our suppliers.”
The company said: “The F-35A unit price in LRIP-10, including aircraft, engine and fee, is roughly 7% lower than the previous LRIP-9 contract. Over the past two procurement lots (LRIP-9 and 10), the price of the F-35A has dropped 12%.”
The LRIP 10 contract includes 55 jets for the US Services and 35 jets for international partners. The breakdown of aircraft is as follows:
· 44 F-35A for the US Air Force
· 9 F-35B for the US Marine Corps
· 2 F-35C for the US Navy
· 3 F-35B for UK
· 6 F-35A for Norway
· 8 F-35A for Australia
· 2 F-35A for Turkey
· 4 F-35A for Japan
· 6 F-35A for Israel
· 6 F-35A for South Korea
Regarding the F-35 economic impact, Lockheed Martin says current low rate production supports more than 1,300 suppliers in 45 states across the United States, directly and indirectly employing more than 146,000 people, in addition to military and civil service positions at US bases.
The company says that by the 2020s, at full rate production, direct and indirect jobs will be more than 260,000.
Source: Lockheed Martin