The Myth of Declining F-35 Prices (***Corrected 3)
(Source: Defense-Aerospace.com; issued Dec 02, 2014) (See Story History at bottom)

By Giovanni de Briganti
PARIS --- The average unit cost of the F-35 Joint Strike Fighter continues to rise, despite claims by the program’s Joint Program Office and the prime contractor, Lockheed Martin, that they are decreasing with each annual production lot.

The program office bases its claim of lower costs on just a few of the many contracts it awards for each lot, and disregards the others. When announcing the main LRIP Lot 6 and Lot 7 contracts on Sept 27, 2013, for example, the JPO stated that:

”This award increases the value of the aircraft and associated production efforts on the LRIP 6 contract to $4.4 billion ($3.7 billion awarded …[in]…December 2012 ….and $0.7 billion awarded today) ….for production of 36 aircraft, with average aircraft unit cost approximately 2.5 percent lower than LRIP 5 aircraft.”

In fact, the real LRIP Lot 6 unit cost ($ 230.3 million) is fully 19.6% higher than the Lot 5 unit cost ($192.6 million) according to our analysis of DoD contract data.

JPO’s claim of lower Lot 6 unit prices is based on the two contracts identified above whereas, in fact, it awarded 27 Lot 6 contracts between Feb 9, 2012 and 0ct 9, 2014. The total value of these contracts is $8,292.6 million (see Table 1), almost double the $4,400 million cited by JPO.

Dividing the $8,292.6 million value of all the Lot 6 contracts by the number of Lot 6 aircraft (36) produces an average unit cost of $230.3 million, which is almost double the unit costs announced by JPO: $103 million to $120 million, depending on the version. (These figures were corrected from "$98 million to $116 million" as mistakenly stated in the story as initially posted.)

It should be noted that these contracts do not include the cost of the aircraft’s engine ($15 to $25 million depending on the variant) which is contracted separately. Once engine costs are added, Lot 6 unit cost increases to about $250 million.

JPO has offered no explanation for having counted only two of the 28 contracts it awarded for Lot 6. Half of these contacts were awarded before JPO announced its unit cost estimate on Sept 27, 2013, and should have been counted; another 13 were awarded after that date, and so could not be counted.

Because of these two procedural quirks, JPO’s unit costs are -- unsurprisingly – wide off the mark.

Joint Program Office responds

The F-35 Joint Program Office does not agree with our approach, and questions its validity. "Deriving aircraft unit costs by 'adding all lot-specific contracts announced by DoD and then dividing them by the number of aircraft in each lot' does not result in the accurate cost of the aircraft," JPO spokesman Joe DellaVedova said in a Dec 03 e-mail. "In addition, it confuses readers and completely ignores the fact that the F-35 is not one aircraft -- it is a family of 3 distinct aircraft."

DellaVedova added that "defense contracts include the price for more items than just the cost of the aircraft. These items may include costs such as spare parts, flight simulators, tooling, support equipment, and manpower to maintain the aircraft.

"To derive the accurate cost of the aircraft, it is necessary to remove those additional items from the total and divide the recurring aircraft costs by the quantity in each lot. The following are the accurate aircraft unit costs by lot by aircraft variant.

"You can see the aircraft price for the F-35As, F-35Bs and F-35Cs are decreasing. Note the F-35B cost appears to increase in Fiscal Year (FY) 2011, but this is due to the small quantity bought in Low Rate Initial Production (LRIP) lot 5. The F-35B does decrease in subsequent lots."

These are JPO's cost figures, by Lot and by variant, as provided by DellaVedova. They include the "build and assemble of the airframe and all subcomponents + engine + profit in 'Then Year' U.S. dollars."

F-35A contract settlement
LRIP 4 -- $125 Million -- FY10
LRIP 5 -- $120 Million -- FY11
LRIP 6 -- $117 Million -- FY12
LRIP 7 -- $112 Million -- FY13

F-35B contract settlement
LRIP 4 -- $139 Million -- FY10
LRIP 5 -- $152 Million -- FY11
LRIP 6 -- $145 Million -- FY12
LRIP 7 -- $137 Million -- FY13
(Increase in LRIP 5 due to 16 Bs in LRIP 4, and 3 Bs in LRIP 5)

F-35C contract settlement
LRIP 4 -- $156 Million -- FY10
LRIP 5 -- $140 Million -- FY11
LRIP 6 -- $134 Million -- FY12
LRIP 7 -- $130 Million -- FY13

"The F-35 is a complex program and we appreciate the opportunity to present the facts," DellaVedova concluded.

(While we concede that our approach may not perfect, it is the best given the information available, even though it results in informed estimates rather than in definitive figures.

But JPO’s figures do not clarify the issue, either. JPO does not say how they were calculated, nor which contracts (or which portion of each contract) were used to arrive at its figures, so they are not necessarily more credible.

Basically, JPO expects its figures to be taken at face value, but given the program's long history of less-than-perfect candor, that is probably one step further than many are willing to take--Ed.)







To avoid any differences of interpretation, we based our calculations on the premise that any contract awarded for Lot 6 aircraft should be counted towards the cost of Lot 6. We thus excluded from our calculations several large contracts not specifically identified as regarding Lot 6 or Lot 5. Some are listed below.

In fact, the cost figures released by JPO and Lockheed appear incomplete however they are analyzed, and can only lead to incoherent unit cost figures.

Even using JPO’s own figure of $4,400 million as the total cost of LRIP 6, for example, the average unit cost should be $122.2 million ($4,400 / 36), and not $98 million to $116 million as announced by JPO.

Lot 5 unit cost well lower than Lot 6

A similar review of Lot 5 contracts shows that the unit cost of Lot 5 aircraft was actually much lower than for Lot 6, which invalidates JPO’s claim that Lot 6 “average aircraft unit cost [is] approximately 2.5 percent lower than LRIP 5 aircraft.”

In fact, as shown in Table 2, the Pentagon awarded 13 contracts for Lot 5, for a total value of $6,163.7 million, between July 6, 2010 and Sept 20, 2013. Since Lot 5 comprises 32 aircraft, their average cost is $192.6 million ($6,163.7m / 32 = $192.6m)

The 19.6% increase of average unit cost between Lot 5 ($192.6m) and Lot 6 ($230.3m) is clearly at odds with claims by JPO and Lockheed Martin that unit prices are decreasing with each successive production lot.

And there is no certainty that these unit costs are final. JPO continues to award contracts for remedial work, concurrency fixes and other modifications. The last such award for Lot 6 was on Oct 9, 2014, and it is quite possible that additional contracts will further inflate Lot 6 costs.



The Pentagon’s method of awarding F-35 contracts, which is illustrated by our tables, seems to be specifically devised to confuse anyone attempting to make some sense of the huge sums being awarded to Lockheed Martin and to Pratt a Whitney, the engine prime contractor. For no other major contract are the engines contracted separately, as for the F-35, and for no other program has it been considered necessary to award, and to publicly announce, 28 contracts for a single production lot.

Furthermore, the way the contracts are split seems to follow no rational process. Why, for example, did the JPO find it necessary to award three separate Lot 6 contracts on Sept. 28, 2012? And why did it end up awarding six separate Lot 6 contracts between Aug 11 and Aug 27, 2014, a period of just over two weeks?

To back up our conclusions, we have listed below all 28 LRIP Lot 6 contracts announced by the Pentagon in its daily contract page, as well as all the 13 Lot 5 contracts that had been previously announced. These are the contracts on which we based our tables.

We will revisit the issue with subsequent production lots, after leaving sufficient time to be reasonably sure that most of the Lot contracts have been awarded.


CORRECTIONS
3. The Joint Program Office's response was added Dec. 04, 2014.

2. A previously-uncounted contract worth $535.31 million was awarded on Aug 8, 2011 for Lot 6. It has now been added to our totals. (Many thanks to reader DB for pointing out this oversight).

1. Lot 5 originally comprised 30 aircraft, and that is the figure used in our original calculations.
However, on April 13, 2012 Lockheed was awarded a $258,800,000 for one additional CTOL aircraft for the US Air Force, and one additional CV aircraft for the US Navy, increasing the number of Lot 5 aircraft to 32.
This increase was overlooked in the original story, which based its sums on the original 30 aircraft. (Many thanks to reader AW for pointing out this oversight)

The corrected story was last uploaded on Dec. 4, 2014 at 07:00 GMT.


METHODOLOGY
1. To calculate average unit costs, we added the value of all contracts awarded for Lot 5 and Lot 6, and divided the total by the number of aircraft in each lot.

2. Our cost figures, like those released by JPO, do not include the cost of the Pratt & Whitney F135 engine, which currently varies between $15 million and $30 million according to the aircraft variant.

3. Several other contracts awarded since 2010, and worth several hundred million dollars, have not been counted in our cost calculations since they were not clearly attributed to any lot. Some are listed below as non Lot-specific.

4. The contracts announcements below have been edited for space. The links are to the relevant announcements on the DoD website.


1. LRIP LOT 6 CONTRACTS

Awarded before Sept 27, 2013


-- Aug 08, 2011:
http://www.defense.gov/Contracts/Contract.aspx?ContractID=4594
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $535,315,000 advance acquisition contract to provide long lead parts and components required for the manufacture of 38 Low Rate Initial Production (LRIP) Lot VI F-35 Lightning II Joint Strike Fighter aircraft (19 Conventional Takeoff and Landing (CTOL) aircraft for the Air Force; 4 CTOLs for the government of Italy; 2 CTOLs for the government of Australia; 6 Short Take-Off Vertical Landing (STOVL) aircraft for the U.S. Marine Corps; and 7 Carrier Variant (CV) aircraft for the Navy).
(This contract was initially overlooked as is does not include its reference number.
Note also that this contract refers to the 38 aircraft initially planned for Lot 6; this was subsequently reduced to 36.)


-- February 09, 2012
http://www.defense.gov/contracts/contract.aspx?contractid=4723
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $14,800,000 modification to a previously awarded advance acquisition contract (N00019-11-C-0083) to procure long lead items for F-35 Lightning II Joint Strike Fighter low rate initial production Lot 6 short take-off vertical landing (STOVL) aircraft for the Marine Corps.

-- 12 March 2012
http://www.defense.gov/contracts/contract.aspx?contractid=4744
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $38,599,999 modification to the previously awarded low rate initial production Lot 6 advance acquisition contract (N00019-11-C-0083) to provide additional funding for the procurement of long lead items for F-35 Lightning II Joint Strike Fighter low rate initial production conventional take-off and landing (CTOL) aircraft for the Air Force, and the governments of Italy and Australia.
Work, which will be performed in Fort Worth, Texas, is necessary to protect the delivery schedules of CTOL aircraft planned for delivery through January 2015.

-- December 06, 2012
http://www.defense.gov/contracts/contract.aspx?contractid=4931
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a not-to-exceed $386,694,924 modification to the previously awarded F-35 Lightning II Program Air System Low Rate Initial Production Lot 6 Advance Acquisition Contract (N00019-11-C-0083) to provide sustainment support for delivered air systems.

--December 28, 2012 (Three contracts)
http://www.defense.gov/contracts/contract.aspx?contractid=4946
** Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a not-to-exceed $3,677,916,910 undefinitized modification to the previously awarded F-35 Lightning II low rate initial production lot 6 advance acquisition contract (N00019-11-C-0083) for the procurement of 18 conventional take-off and landing aircraft for the Air Force; six short take-off vertical landing aircraft for the Marine Corps; and seven Carrier Variant aircraft for the Navy. In addition, this modification provides for all associated ancillary mission equipment.

** Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a not-to-exceed $753,420,000 undefinitized modification to the previously awarded F-35 Lightning II low rate initial production lot 6 advance acquisition contract (N00019-11-C-0083) to provide non-recurring sustainment and logistics support for delivered and projected air systems.

** Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a not-to-exceed $374,495,232 undefinitized modification to the previously awarded F-35 Lightning II low rate initial production lot 6 advance acquisition contract (N00019-11-C-0083) the manufacture and delivery of initial air vehicle spares in support of 60 low rate initial production lot VI and VII air vehicles (37 Air Force conventional take-off and landing (CTOL) aircraft; 12 Marine Corps short take-off vertical landing aircraft; and 11 Navy Carrier Variant aircraft.
(This contract has been counted towards Lot 6 costs on a pro-rata basis—Ed.)

-- March 05, 2013
http://www.defense.gov/contracts/contract.aspx?contractid=4991
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a not-to-exceed $72,200,000 undefinitized modification to the previously awarded Low Rate Initial Production Lot 6 advance acquisition contract (N00019-11-C-0083). This modification provides for the procurement of support equipment at Pilot Training Center 1, Luke Air Force Base for the F-35 Lightning II Conventional Take-Off and Landing air system program.

-- March 20, 2013
http://www.defense.gov/contracts/contract.aspx?contractid=5001
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a not-to-exceed $9,800,000 undefinitized modification to the previously awarded low rate initial production Lot 6 advance acquisition contract (N00019-11-C-0083). This modification provides for the procurement of Australian-specific non-recurring sustainment activities to include procurement of Autonomic Logistics Information System equipment, and sustainment and logistics support to government non-recurring engineering activities.

-- August 12, 2013
http://www.defense.gov/contracts/contract.aspx?contractid=5108
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a not-to-exceed $852,298,021 undefinitized modification to the previously awarded Low Rate Initial Production Lot 6 Advance Acquisition contract (N00019-11-C-0083). This modification provides for the procurement of special tooling and special test equipment for the U.S. Navy, U.S. Air Force and the international partners, which is critical to preserving the current F-35 delivery schedules and meeting future production rates.

-- August 22, 2013
http://www.defense.gov/contracts/contract.aspx?contractid=5118
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a not-to-exceed $34,500,000 undefinitized modification to the previously awarded Low Rate Initial Production Lot 6 Advance Acquisition contract (N00019-11-C-0083) for the F-35 Lightning II Joint Strike Fighter aircraft. This modification provides for the procurement of Autonomic Logistics Information System equipment, training devices and sustainment and logistics support for non-recurring engineering activities for the government of Italy.

-- September 05, 2013
http://www.defense.gov/contracts/contract.aspx?contractid=5127
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a not-to-exceed $10,000,000 undefinitized modification to the previously awarded Low Rate Initial Production Lot 6 advance acquisition contract (N00019-11-C-0083). This modification provides for the initial lay-in of consumable piece parts for repair of repairables at U.S. government organic depots and original equipment manufacturers in support of the F-35 Lightning II Program.

-- September 13, 2013
http://www.defense.gov/contracts/contract.aspx?contractid=5133
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a not-to-exceed $75,726,105 cost-plus-incentive-fee modification to the previously awarded F-35 Lightning II Low Rate Initial Production Lot VI Advance Acquisition contract (N00019-11-C-0083). This modification provides for the diminishing manufacturing sources redesign efforts in support of the Joint Strike Fighter Lot VI effort.

-- September 20, 2013
http://www.defense.gov/contracts/contract.aspx?contractid=5138
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $46,018,410 modification to the previously awarded F-35 Lightning II low rate initial production Lot VI advance acquisition contract (N00019-11-C-0083). This modification provides for the non-recurring technical efforts for manufacturing technology transfer and planning tasks required to ensure a manufacturing base with sufficient technical knowledge is established to support F-35 production requirements.


LRIP 6 contracts awarded after Sept 27, 2013

-- February 20, 2014
http://www.defense.gov/Contracts/Contract.aspx?ContractID=5227
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $9,515,086 cost-plus-incentive-fee modification to the previously awarded F-35 Lightning II Low Rate Initial Production Lot VI contract (N00019-11-C-0083). This modification provides for Netherlands-specific, non-recurring sustainment activities to include procurement of Autonomic Logistics Information Systems equipment and logistics support for non-recurring engineering activities.

-- March 07, 2014
http://www.defense.gov/Contracts/Contract.aspx?ContractID=5237
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a not-to-exceed $7,696,166 undefinitized modification to the previously awarded low rate initial production lot 6 advanced acquisition contract (N00019-11-C-0083) for the F-35 Lightning II Joint Strike Fighter aircraft. This modification provides for the procurement of non-recurring sustainment activities for the government of the United Kingdom, to include procurement of site activation planning efforts for Royal Air Force Marham.

--June 30, 2014
http://www.defense.gov/contracts/contract.aspx?contractid=5318
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $18,369,619 modification to a previously awarded fixed-price-incentive (firm target) contract (N00019-11-C-0083) for the procurement and delivery of electronic components needed to support F-35 production, sustainment, and operations and maintenance requirements.

-- July 14, 2014
http://www.defense.gov/contracts/contract.aspx?contractid=5328
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $278,649,002 modification to the previously awarded F-35 Lightning II Low Rate Initial Production Lot VI contract (N00019-11-C-0083). This modification provides for non-recurring sustainment activities, to include procurement of Depot Phases I-IV sustainment activities.

--August 11, 2014
http://www.defense.gov/contracts/contract.aspx?contractid=5348
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $46,197,710 cost-plus-fixed-fee, fixed-price-incentive firm modification to a previously awarded advance acquisition contract (N00019-13-C-0008) for production non-recurring technical assistance in support of F-35 Lightning II Joint Strike Fighter aircraft for the U.S. Marine Corps, U.S. Air Force, U.S. Navy, and international partners.

-- August 15, 2014
http://www.defense.gov/contracts/contract.aspx?contractid=5352
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $232,794,734 cost-plus-incentive-fee modification to the previously awarded F-35 Lightning II Low Rate Initial Production Lot VI contract (N00019-11-C-0083). This modification provides for non-recurring sustainment activities, to include procurement of 19 training devices and 69 items of complex support equipment.

-- August 20, 2014
http://www.defense.gov/Contracts/Contract.aspx?ContractID=5356
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $12,789,893 modification to the previously awarded F-35 Lightning II Low Rate Initial Production (LRIP) Lot VI contract (N00019-11-C-0083). This modification provides for the procurement of F-35 Deployable Spares Package spares for the U.S. Air Force.

-- August 25, 2014
http://www.defense.gov/contracts/contract.aspx?contractid=5360
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded an $8,167,322 modification to the previously awarded F-35 Lightning II Low Rate Initial Production (LRIP) Lot VI contract (N00019-11-C-0083). This modification provides for the maintenance and support for the F-16 chase aircraft supporting the F-35.

-- August 26, 2014
http://www.defense.gov/contracts/contract.aspx?contractid=5361
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $19,994,879 modification to the previously awarded F-35 Lightning II Low Rate Initial Production Lot VI contract (N00019-11-C-0083). This modification provides site activation efforts required for the stand-up of the United Kingdom Joint Strike Fighter Academic Training Center at Royal Air Force Marham, United Kingdom.

-- August 27, 2014
http://www.defense.gov/contracts/contract.aspx?contractid=5362
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $122,217,252 modification to a previously awarded F-35 Lightning II Low Rate Initial Production (LRIP) Lot VI cost-plus incentive fee contract (N00019-11-C-0083) for the procurement of support equipment for the F-35 aircraft such as sensor covers, tool sets, vacuum clamp sets, and heat gun assemblies.

-- October 09, 2014 (Two contracts)
http://www.defense.gov/contracts/contract.aspx?contractid=5394
** Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $37,129,230 modification to the previously awarded F-35 Lightning II Low Rate Initial Production Lot VI contract (N00019-11-C-0083). This modification provides for non-recurring efforts associated with the procurement of training spares for Israel and Japan and two full mission simulators in support of Japan’s F-35A Conventional Take-Off and Landing (CTOL) Air System for pilot training.

** Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $30,927,881 modification to the previously awarded F-35 Lightning II Low Rate Initial Production Lot VI contract (N00019-11-C-0083).
This modification provides for non-recurring efforts associated with the procurement of two full mission simulators in support of Israel’s F-35A Conventional Take-Off and Landing Air System for pilot training.

-- September 19, 2014
http://www.defense.gov/contracts/contract.aspx?contractid=5380
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $24,868,359 modification to the previously awarded F-35 Lightning II Low Rate Initial Production (LRIP) Lot VI contract (N00019-11-C-0083).
This modification is to realign and increase concurrency funding for post-production concurrency changes to LRIP Lot VI aircraft.


LRIP LOT 5 CONTRACTS

-- July 06, 2010
http://www.defense.gov/contracts/contract.aspx?contractid=4316
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded an advance acquisition contract with an estimated value of $522,200,000 to provide for long-lead efforts and materials associated with the production and delivery of 42 low-rate initial production Lot V F-35 Joint Strike Fighter aircraft. This contract provides for 22 conventional take off and landing aircraft for the Air Force; 13 short take off and vertical landing aircraft for the Marine Corps; and seven carrier variant aircraft for the Navy.

-- December 08, 2010
http://www.defense.gov/contracts/contract.aspx?contractid=4425
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $76,041,000 fixed-price-incentive-firm modification to a previously awarded advance acquisition contract activity (N00019-10-C-0002). This modification provides additional funding for long lead efforts and materials associated with the production and delivery of 42 low rate initial production Lot V F-35 Joint Strike Fighter aircraft for the Air Force (22 Conventional Take Off and Landing aircraft); the Marine Corps (13 Short Take Off and Vertical Landing aircraft); and the Navy (7 Carrier Variant aircraft).

-- September 27, 2011
http://www.defense.gov/contracts/contract.aspx?contractid=4631
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded an $187,000,000 cost-plus-fixed-fee modification to a previously awarded advance acquisition contract (N00019-10-C-0002). This modification provides additional funding for recurring sustainment support, and system engineering sustainment activities necessary to meet the requirement and delivery schedule of this low rate initial production, lot five, F-35 Joint Strike Fighter.

-- December 09, 2011
http://www.defense.gov/contracts/contract.aspx?contractid=4681
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $4,011,919,310 fixed-price-incentive (firm target) (FPIF) modification to a previously awarded advance acquisition contract (N00019-10-C-0002). This modification provides for the manufacture and delivery of 30 Low Rate Initial Production Lot V F-35 Joint Strike Fighter (JSF) Aircraft for the U.S. Air Force (21 Conventional Take Off and Landing (CTOL) aircraft); the U.S. Navy (6 Carrier Variant (CV) aircraft) and the U.S. Marine Corps (3 Short Take Off and Vertical Landing (STOVL) aircraft).

-- December 27, 2011
http://www.defense.gov/contracts/contract.aspx?contractid=4692
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $485,000,000 not-to-exceed cost-plus-fixed-fee undefinitized modification to a previously awarded advance acquisition contract (N00019-10-C-0002). A total of $131,500,000 is being obligated at time of award. This modification provides the F-35 Lightning II, Joint Strike Fighter Low Rate Initial Production Lot V production non-recurring requirements inclusive of special tooling/special test equipment and subcontractor technical assistance for the Air Force, Navy, and the Cooperative Partner participants.

-- March 12, 2012
http://www.defense.gov/contracts/contract.aspx?contractid=4744
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $56,329,396 cost reimbursement modification to previously awarded contract (N00019-10-C-0002) to provide additional funding for the sustainment effort necessary to meet the requirements and delivery schedule for the F-35 Low Rate Initial Production V.

-- April 13, 2012
http://www.defense.gov/contracts/contract.aspx?contractid=4769
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $258,800,000 not-to-exceed undefinitized modification to the previously awarded F-35 Lightning II Joint Strike Fighter low rate initial production Lot 5 contract (N00019-10-C-0002), including one additional conventional take-off and landing aircraft for the Air Force, and one additional carrier variant aircraft for the Navy.

-- June 04, 2012
http://www.defense.gov/contracts/contract.aspx?contractid=4804
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded an $111,612,964 cost reimbursement modification to a previously awarded advanced acquisition contract (N00019-10-C-0002). This modification provides additional funding for recurring support activities such as initial training, aircraft maintenance operations, stand-up of sustainment capability at specified locations, technical data management, and sustaining engineering for the Navy, Marine Corps, and Air Force.

-- August 06, 2012
http://www.defense.gov/contracts/contract.aspx?contractid=4848
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a not-to-exceed $209,800,000 modification to a previously awarded contract (N00019-10-C-0002). This modification provides for the manufacture and delivery of initial air vehicle spares in support of 32 F-35 Lightning II Program low rate initial production Lot V air vehicles.

-- September 26, 2012
http://www.defense.gov/contracts/contract.aspx?contractid=4885
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $79,930,653 not-to-exceed modification to a previously awarded advance acquisition contract (N00019-10-C-0002) for the manufacture and delivery of six F-35 Lightening II Full Mission Simulators In addition, this modification provides for a radar upgrade at Hill Air Force Base in support of F-35 radar cross section testing.

-- December 14, 2012
http://www.defense.gov/contracts/contract.aspx?contractid=4938
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $127,740,214 fixed-price-incentive-fee and cost-plus-incentive-fee modification to the previously awarded F-35 Lightning II Program Air System Low Rate Initial Production (LRIP) Lot 5 contract (N00019-10-C-0002). This effort is required to complete the definitization for the previously announced Undefinitized Contractual Action (UCA) for a total of 32 F-35 Air Systems. This modification procures LRIP 5 production requirements including: manufacturing support equipment; two program array assemblies; ancillary mission equipment, including pilot flight equipment; preparation for ferry of aircraft; and diminishing manufacturing sources redesign.

-- Dec 28, 2012
http://www.defense.gov/contracts/contract.aspx?contractid=4946
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a not-to-exceed $17,106,385 undefinitized modification to the previously awarded F-35 Lightning II low rate initial production lot 5 contract (N00019-10-C-0002). This modification provides for the manufacture and delivery of initial air vehicle spares in support of F-35 Lightening III program LRIP lot 5 air vehicles for the Air Force.

-- Sept 20, 2013
http://www.defense.gov/contracts/contract.aspx?contractid=5138&
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $20,461,696 modification to a previously awarded firm-fixed-price contract (N00019-10-C-0002) for the procurement and delivery of electronic components needed to support F-35 production and sustainment requirements due to current diminishing manufacturing sources.


Non Lot-specific contracts awarded during Lot 6 time-frame
These contracts are not included in our evaluation of Lot 5 and Lot 6 costs.

-- September 18, 2013
http://www.defense.gov/contracts/contract.aspx?contractid=5136
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $99,010,000 modification to a previously awarded advance acquisition contract (N00019-13-C-0008) to provide long lead-time parts, material and components required for the delivery of 19 conventional take off and landing F-35 Lightning II Joint Strike Fighter aircraft for the U.S. Air Force.

-- September 20, 2013
http://www.defense.gov/contracts/contract.aspx?contractid=5138
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $20,461,696 modification to a previously awarded firm-fixed-price contract (N00019-10-C-0002) for the procurement and delivery of electronic components needed to support F-35 production and sustainment requirements due to current diminishing manufacturing sources.

-- June 24, 2014
http://www.defense.gov/contracts/contract.aspx?contractid=5314
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $75,980,553 modification to a previously awarded firm-fixed-price contract (N00019-12-C-0004) for the procurement of 252 helmet mounted display systems in support of the F-35 Lightning II aircraft for the U.S. Navy, U.S. Air Force, and the governments of Japan and Israel.

-- June 30, 2014
http://www.defense.gov/contracts/contract.aspx?contractid=5318
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $18,369,619 modification to a previously awarded fixed-price-incentive (firm target) contract (N00019-11-C-0083) for the procurement and delivery of electronic components needed to support F-35 production, sustainment, and operations and maintenance requirements.

-- September 25, 2014
http://www.defense.gov/contracts/contract.aspx?contractid=5384
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $331,408,457 cost-plus-fixed-fee modification to a previously awarded advance acquisition contract (N00019-13-C-0008) for the procurement of production non-recurring items, including special tooling, special test equipment items and software lab upgrades in support of F-35 Lightning II Joint Strike Fighter aircraft for the U.S. Marine Corps, U.S. Air Force, U.S. Navy, international partners, and foreign military sales.


STORY HISTORY

-- Addition Dec 04, 2014:

The Joint Program Office's response was added Dec. 04, 2014.

-- Corrections Dec 03, 2014:
(1): Text and Table 1 were corrected to add one Lot 6 contract (awarded 9 Aug 2011) that had been overlooked in the original story.
(2): text and Table 2 were corrected to reflect the fact that Lot 5, which originally comprised 30 aircraft, was increased to 32 aircraft in April 2012

-- Correction Dec 02, 2014:
The range of Lot 6 unit costs in the 6th paragraph was corrected, to $103-$120 million, shortly after the story was posted.


-ends-




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