Pentagon Contract Announcement
(Source: US Department of Defense; issued June 8, 2018)
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $735,735,572 modification to a previously awarded advance acquisition contract (N00019-17-C-0001).

This modification provides additional advance procurement funding in the amount of $74,746,572 for the procurement of long-lead time materials, parts, components, and effort in support of the F-35 Lightning II Low Rate Initial Production Lot 13 aircraft for the U.S. Air Force, U.S. Navy, and U.S. Marine Corps.

The modification also provides $660,989,000 in economic order quantity funding for procurement of material and equipment that has completed formal hardware qualification testing for the F-35 program for use in procurement contracts to be awarded for the F-35 program low rate initial production Lots 13 and 14 for the U.S. Air Force, U.S. Navy, and U.S. Marine Corps.

Work will be performed in Fort Worth, Texas (30 percent); El Segundo, California (25 percent); Warton, United Kingdom (20 percent); Orlando, Florida (10 percent); Nashua, New Hampshire (5 percent); Nagoya, Japan (5 percent); and Baltimore, Maryland (5 percent), and is expected to be completed in December 2019.

Fiscal 2018 aircraft procurement (Air Force, Navy, and Marine Corps) funds in the amount of $735,735,572 are being obligated at time of award, none of which will expire at the end of the current fiscal year.

This modification combines purchases for the U.S. Air Force ($359,378,333; 49 percent); U.S. Navy ($193,379,239; 26 percent); and the U.S. Marine Corps ($182,978,000; 25 percent).

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

(EDITOR’S NOTE: The F-35 Joint Program Office has still not awarded the Lot 11 production contract, as negotiations continue with Lockheed Martin over the price, but it continues to support the program by advancing large contracts for long-lead items, such as the award announced above.
The full contract for Lot 12 has not yet been awarded, either.
These actions tend to reinforce the impression that, even though Lockheed continues to deliver sub-standard F-35 aircraft that require costly upgrading, and even though the US Air Force is considering scrapping 200 delivered F-35s because it cannot afford to upgrade them, the Pentagon continues to order as many and as fast as possible, in a race to make the program “too big to kill.”
Finally, as is often the case for F-35 contract announcements, the above award combines funding for very different things, which makes it very difficult to accurately calculate the cost of each lot, and consequently how much customers are paying for their F-35s.)


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