The U.S. Dept. of Defense assigned an $869.9-million contract to Lockheed Martin to proceed with procurement of long-lead materials, parts, and components, plus associated support services for Lot 20 of the F-35 Joint Strike Fighter aircraft. The F-35’s Lots 18 and 19 are in production currently in production, though Lockheed and the Pentagon have not yet finalized the production scope in terms of unit numbers and cost.
The newly issued contract is due to be completed in 2031, which presumably would coincide with the planned start of production for those aircraft.
The F-35 is a series of fighter jets deployed for ground attack and combat, and available in three variants, for the USAF, USMC, and USN, and defense forces of more than a dozen other nations. It is by far the largest and most expensive U.S. defense program, with hundreds of program participants and suppliers.
A Lockheed executive recently reported to investors that the manufacturer expects a production agreement for Lots 18 and 19 to be awarded before the end of this year.
“We expect F-35 Lot 18-19 to be awarded this year, maintaining program funding and continuity,” CFO Jesus Malave Jr. stated on a Q3 earnings call, noting that agreement would confirm “our mutual goals of delivering advanced fifth-generation fighter capability to our services.”
It’s been previously reported that the DoD would reduce the number of aircraft contracted in Lots 18 and 19, in a step to control rising costs.
According to Lockheed Aeronautics president Greg Ulmer, the aircraft unit costs will rise in any case. “Inflation is real. The cost of raw materials has gone up. The cost of everything has gone up, so there is just inflation pressure in the system,” Ulmer is reported to have said.
More specifically, the new F-35s will reflect the cost of adopting the Technology Refresh (TR-3) updates, which will improve the jets’ data-processing functions, to accommodate new electronic warfare capabilities. Those updates will include new Pratt & Whitney propulsion technology referred to as the Engine Core Update.
The F-35 program budget is also being adjusted to outfit all the current aircraft with the TR-3 and ECU capabilities.
