Pentagon Contract Announcement
(Source: US Department of Defense; issued April 16, 2014)
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $54,574,234 modification to a previously awarded fixed-price-incentive-fee, cost-plus-incentive-fee contract (N00019-12-C-0004) for production non-recurring technical assistance in support of the F-35 Lot VII effort for the U.S. Navy, U.S. Air Force, and international partner governments.

Services to be provided includes manufacturing technology transfer and planning tasks required to ensure a manufacturing base with sufficient technical knowledge to support F-35 production requirements.

Work will be performed in El Segundo, Calif. (38 percent); Fort Worth, Texas (24 percent); Warton, United Kingdom (16.5 percent); San Diego, Calif. (14 percent); Orlando, Fla. (3.4 percent); Nashua, N.H. (2.3 percent); Palmdale, Calif. (1.2 percent); Marietta, Ga. (.3 percent) Amityville, N.Y. (.2 percent); and Laval, Canada (.1 percent), and is expected to be completed in January 2015.

Fiscal 2012 aircraft procurement, Navy and Air Force and international partner funds in the amount of $54,574,234 are being obligated on this award, $42,966,294 of which will expire at the end of the current fiscal year.

This modification combines purchases for the U.S. Navy ($21,912,810; 4 percent); the U.S. Air Force ($21,053,484; 38.7 percent); and F-35 international partner governments ($11,607,930; 21.3 percent).

The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

(EDITOR’S NOTE: This is another episode in the remarkable and continuing story of F-35 contracting.
This latest contract, which has a planned duration of 9 months, uses FY2012 funds (in FY2014) to pay Lockheed “to ensure a manufacturing base with sufficient technical knowledge to support F-35 production requirements” for the LRIP 7 production lot.
The main LRIP 7 contract was awarded – using FY2013 funds - on September 27, 2013. Why is this “technical knowledge” contracted separately, 7 months later?
Is it a remedial action?
Is it to correct an oversight?
Is it an additional contract for additional work?
Since it concerns “F-35 production requirements” one imagines it to be of some significance, especially as it also concerns foreign governments.
Why, then, does it only concern Lot 7 production?
Given the way contracts for each production lot are divided into several parts, and funded over several fiscal years, it is not surprising that so much uncertainty concerning F-35 costs and prices.)


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