Lockheed and Pentagon strike initial 10-year deal for 850 F-35 jets
Lockheed Martin and the US Department of Defense have entered an initial 10-year production and sustainment agreement covering at least 850 F-35 Lightning II jets at 156 aircraft a year — a framework deal, not yet a formal order.
Lockheed Martin has entered an initial production and sustainment agreement with the US Department of Defense for at least 850 F-35 Lightning II fighter jets over the next 10 years, the two sides announced on Thursday (Reuters).
The agreement is not an order but a prearranged long-term framework. Formal contract terms, pricing and schedules would only follow a contract award if Congress grants the F-35 Joint Program Office multiyear procurement authority in the coming months.
Under the framework, Lockheed would produce 850 aircraft for the US and international customers, plus sustainment, spare parts and modification kits, maintaining annual production at 156 aircraft, Dow Jones Newswires reported via Morningstar. The deal would end the annual contracting cycle for the programme.
Lockheed will self-fund at least $7 billion in initiatives supporting the F-35 programme, the department said, and estimates the agreement will support 317,000 US jobs and generate nearly $79 billion in annual economic activity over the next decade (Dawn).
Under Secretary of Defense Michael Duffey said: “We have fundamentally changed how we stabilize the American defense industrial base to produce at speed and scale … ensuring our warfighters are equipped with the lethal capabilities they need to fight and win.”
Chief executive Jim Taiclet said the multiyear framework lets Lockheed make the upfront investments needed to expand capacity: “That’s good for the taxpayer, good for our suppliers and, most importantly, good for the United States and its allies.”
More than 1,375 F-35s are currently fielded worldwide. The agreement was announced with the Defense Department — which President Donald Trump calls the Department of War.
Sources
- Reuters: Lockheed, Pentagon strike initial deal to produce 850 F-35 jets
- Dow Jones Newswires (via Morningstar): Lockheed Martin Inks 10-Year F-35 Framework Deal With Government
- Dawn: Lockheed, US Pentagon strike initial deal to produce 850 F-35 jets
- Al Arabiya: Lockheed, Pentagon strike initial deal to produce 850 F35 jets
More on this topic: all World stories
