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January 30, 2019 | International, Aerospace

Lockheed: F-35A Cost To Drop Below $80 Million Per Fighter In 2023

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Lockheed Martin is committed to producing the F-35A Lightning II Joint Strike Fighter for $80 million each by next year and further reducing the overall program costs as part of the next production contract negotiations with the Department of Defense, the company said on Tuesday

In 2022, Lockheed Martin officials expect to negotiate the next multiyear F-35 contract with the Joint Program Office. The goal is to use the steady cash flow from a multiyear contract to drive down further the production costs once the contract kicks in.

As part of a pitch for multiyear contract, Lockheed Martin officials say such a deal will lower the F-35A price to less than $80 million per fighter, Marillyn Hewson, chief executive of Lockheed Martin, told analysts during a conference call today discussing the company's 2018 year-end results and expectations for 2019.

“That's our target, to continue to drive the unit cost down,” Hewson said. “And we won't stop there, we will always be looking at ways that we can take the cost down in the program as it continues to mature and grows.”

Currently, the F-35A, the standard take-off and landing variant primarily used by the U.S. Air Force and foreign partners, has a price tag of $89.2 million. The F-35B short takeoff/vertical landing variant used by the Marine Corps and some foreign partners currently cost $115.5 million each, and the F-35C carrier variant used by the Navy cost $107.7 million per fighter, according to Lockheed Martin.

As production increases, the price per F-35 is expected to decrease due to efficiencies in the production process and the ability to lock in lower prices for large quantities of raw materials and components. Lockheed Martin plans to deliver 131 fighters this year, compared to the 91 F-35 fighters delivered in 2018. Within two years, company officials expect to deliver more than 161 fighters per year.

However, with F-35 production is closing in on what's considered the full capacity for the program of record, Hewson said the company could build more.

Increasing the production rate would require coordination with the JPO, the supply chain and international customers, but Hewson said the company could handle increased demand. Germany, Switzerland and Finland are currently considering buying the F-35, Hewson said.

Already the U.S. and 12 other countries are either part of the program of record or committed to purchasing F-35 fighters, according to Lockheed Martin.

“We could certainly go to a higher rate if the demand were such that we needed to do that,” Hewson said.

Other segments of Lockheed Martin's weapons systems portfolio are also expected to perform well in 2019. The company's Missiles and Fire Control business are expected to record a profit of between $1.3 billion and $1.4 billion in the year. The Rotary and Mission Systems business is expected to record a profit of about $1.3 billion for the year, Bruce Tanner, Lockheed Martin's chief financial officer, said during the call.

After the call, the U.S. Department of State's Defense Security Cooperation Agency announced it approved the sale of two Aegis Weapon Systems, two Multi-Mission Signal Processors and two Command and Control Processor refreshes to Japan.

Lockheed Martin's Rotary and Mission Systems division is the prime contractor for the Aegis Weapon System and Multi-Mission Signal Processor portion of the $2.1-billion total buy. Japan selected Lockheed Martin in July to outfit its Aegis Ashore system but needed State Department approval before finalizing the deal.

In September, the Japanese Maritime Self-Defense Force successfully tested its sea-based Aegis ballistic missile defense capability with the U.S. Missile Defense Agency. Japan currently has four Aegis-equipped destroyers and is in the process of building two more.

The following is the State Department notice it approved a proposed Aegis Weapon System sale to Japan.
AEGIS Weapon Systems
Transmittal No: 19-08

WASHINGTON, January 29, 2019 – The State Department has made a determination approving a possible Foreign Military Sale to Japan of two (2) AEGIS Weapon Systems (AWS), two (2) Multi-Mission Signal Processors (MMSP) and two (2) Command and Control Processor (C2P) Refreshes and related equipment for an estimated cost of $2.150 billion. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale today.

The Government of Japan has requested to buy two (2) AEGIS Weapon Systems (AWS), two (2) Multi-Mission Signal Processors (MMSP) and two (2) Command and Control Processor (C2P) Refreshes. Also included is radio navigation equipment, naval ordnance, two (2) Identification Friend or Foe (IFF) Systems, Global Command and Control System-Maritime (GCCS-M) hardware, and two (2) Inertial Navigation Systems (INS), U.S. Government and contractor representatives' technical, engineering and logistics support services, installation support material, training, construction services for six (6) vertical launch system launcher module enclosures, communications equipment and associated spares, classified and unclassified publications and software, and other related elements of logistical and program support. The total estimated program cost is $2.150 billion.

This proposed sale will contribute to the foreign policy and national security of the United States by improving the security of a major ally that is a force for political stability and economic progress in the Asia-Pacific region. It is vital to U.S. national interests to assist Japan in developing and maintaining a strong and effective self-defense capability.

This proposed sale will provide the Government of Japan with an enhanced capability against increasingly sophisticated ballistic missile threats and create an expanded, layered defense of its homeland. Japan, which already has the AEGIS in its inventory, will have no difficulty absorbing this system into its armed forces.

The proposed sale of this equipment and support does not alter the basic military balance in the region.

The prime contractor for the Aegis Weapon System and Multi-Mission Signal Processors will be Lockheed Martin Rotary and Mission Systems, Washington, DC. The Command and Control Processor Refresh will be provided by General Dynamics, Falls Church, VA.

There are no known offset agreements proposed in connection with this potential sale.

Implementation of this proposed sale will require annual trips to Japan involving U.S. Government and contractor representatives for technical reviews, support, and oversight for approximately eight years.

There will be no adverse impact on U.S. defense readiness as a result of this proposed sale.

This notice of a potential sale is required by law and does not mean the sale has been concluded.

All questions regarding this proposed Foreign Military Sale should be directed to the State Department's Bureau of Political Military Affairs, Office of Congressional and Public Affairs, pm-cpa@state.gov.

https://news.usni.org/2019/01/29/40708

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  • Navy Awards Sikorsky $1.13B for Next 12 CH-53K Heavy-Lift Helicopters

    May 22, 2019 | International, Aerospace, Naval

    Navy Awards Sikorsky $1.13B for Next 12 CH-53K Heavy-Lift Helicopters

    By: Megan Eckstein The Department of the Navy awarded Sikorsky a $1.13-billion contract for 12 CH-53K King Stallion heavy-lift helicopters, the Defense Department announced on Friday. The contract to the Lockheed Martin-owned company covers Lots 2 and 3 of the helicopter, which will replace the aging CH-53E Super Stallion. The Navy plans to buy 200 CH-53Ks over the life of the program. This award comes after an overhaul of the helicopter's test program, which had fallen behind due to inefficiencies in the test plan and technical problems in the design of the aircraft. Those problems included an exhaust gas reingestion problem in the helo's three-engine design. A recent Pentagon Selected Acquisition Report noted 126 design deficiencies, Bloomberg has reported, and the Department of the Navy has since worked with Sikorsky to restructure the remaining test program. After cost growth in the Lot 1 contract for the helicopters, the Navy and Marine Corps reduced this contract to 12, compared to a previous plan to buy 14 under Lots 2 and 3. “The aircraft quantity was negotiated for 12 vice 14 aircraft due to cost growth identified during Lot 1 production as well as the cost of incorporating the correction of known technical deficiencies that have resulted from developmental flight test to date,” Navy spokesman Capt. Danny Hernandez told USNI News. “The lower quantity will allow the program to afford the aircraft while preserving planned support efforts within the budget and program schedule.” In a Friday news release, Navy and Marine Corps leadership expressed confidence in the program despite the challenges it has faced over the past year or so. “The Marine Corps is very appreciative of the efforts by the Navy and our industry partners to be able to award the LRIP 2/3 contract,” Lt. Gen. Steven Rudder, the deputy commandant for aviation, said in a news release. “This is a win for the Marine Corps and will secure the heavy-lift capability we need to meet future operational requirements and support the National Defense Strategy. I'm very confident in the success of the CH-53K program and look forward to fielding this critical capability.” “This contract award reflects close cooperation and risk sharing between the Government and industry teams to deliver critical capabilities to the Marine Corps,” James Geurts, assistant secretary of the Navy for research, development and acquisition, said in the release. “Working with our industry partners, the team ensured that solutions for technical challenges are incorporated into these production aircraft. This reflects the urgency to ensure we deliver capabilities necessary to support the Marine Corps and the Department of Navy's mission, while continuing to drive affordability and accountability into the program.” In a House Armed Services Committee hearing earlier this spring, Daniel Nega, the deputy assistant secretary of the Navy for air programs, told lawmakers on the tactical air and land forces subcommittee that the upcoming contract would put the onus on Sikorsky to address remaining design flaws and fix any other problems that come up during the remainder of testing. “The flight envelope's been tested to the corners; Gen. Rudder talked about how we've sort of wrung it out,” he said at the hearing. “There's a relatively low risk that anything major will be found. However, if nuisance issues come along, we are not going to give those nuisance issues to the Marines, and the Navy and Marine Corps team is not going to accept the full risk of that. So the risk concurrency between the development and the production, that overlap is going to be taken care of.” Asked how the contract awarded today would do that, Hernandez told USNI News that “the production contract is structured to ensure a deployable configuration is delivered for fleet use. All known issues are included in the contract, additionally the contract provides provisions for any new issues discovered during flight testing. This will ensure appropriate shared risk between the government and industry.” Sikorsky's Path Forward Despite the ongoing technical challenges with the helicopter design and the delays in the test program – which has set back the planned start of initial operational test and evaluation but does not appear to threaten the planned first deployment of the helicopter in 2023 or 2024 – Sikorsky officials remain confident that the aircraft is on the right path following last year's restructure. “The majority of the technical issues that we've discovered over the 1,400 hours of flight test, nothing too terribly different than we would expect to find on a development program,” Bill Falk, Sikorsky's program director for CH-53K, told USNI News in an interview earlier this month. “The majority of them are already resolved, already proven and demonstrated in aircraft. We do have a set of issues that we still are in the process of resolving and demonstrating, but we've got a plan in place, parts installing in the aircraft and flight test plans to demonstrate that.” Falk said the company has dedicated one of its six test aircraft to tackle the exhaust gas reingestion issue, spending the last four or five months using computer-aided modeling and data from test flights to develop prototype solutions and test them out on the aircraft. “We have enough data that we now understand what solution we need to install on the aircraft, demonstrate and validate, which will become part of the production solution,” Falk said. “So we are at a completely different spot: where there was uncertainty four to five months ago, we have complete confidence now.” The new test plan is also more focused than the original one, tying each flight test to the delivery of a specific capability rather than just flying for flying's sake, Falk told USNI News. The helicopter has already demonstrated that it meets or exceeds all requirements for speed, range, altitude, lift capacity and more. Sikorsky and the Navy/Marine Corps team have also conducted hot weather and brownout condition testing in Arizona, and they have certified the helicopter can be transported via C-5 and C-17 cargo planes. A key upcoming test will be sea trials, where the CH-53K will have to prove it can fly on and off a flight deck and that Marines can maintain it at sea. Falk said the Navy is looking at a window of late February or early March through May of 2020 for sea trials, and that the tests will take place aboard a yet-to-be-decided amphibious assault ship. Initial operational test and evaluation is set to begin in early 2021, which would allow the Marine Corps to declare initial operational capability in time for the first deployment in 2023 or 2024. Though work still remains to be done, Paul Fortunato, director of Marine Corps business development at Sikorsky, and John Rucci, the company's senior experimental test pilot for the CH-53K, said the new helicopter has already proven it is easier to operate and maintain than its predecessor and that its warfighting capability surpasses the requirements for the aircraft. Rucci said pilots have total trust in the fly-by-wire cockpit, which essentially lands the helicopter on its own – meaning the pilots can focus on the mission at hand or evading a threat, or can safely land in a sandstorm or other degraded conditions. And Fortunado said the helo was built with easy maintenance in mind: fewer tools are required, the all-electronic maintenance documents include graphics that maintainers can zoom in on and rotate to help them maintain or repair parts, the logistics footprint is smaller and easier for deployments aboard amphibious ships. The design even includes putting electronic components in “backwards,” meaning the connections are facing outwards and easily accessible when maintainers take off a panel, instead of the wiring being in the back like usual and requiring a Marine to use a mirror to see what is going on behind the component. At Marine Corps Air Station New River in North Carolina, Falk said, Marines are using one of the system demonstration test article (SDTA) helicopters to work out any remaining issues in the maintenance manuals and to start learning more about how to fix and sustain the new helo. “There's Marines crawling around that aircraft, taking it apart, putting it back together again, running the maintenance procedures, and basically using what we developed in order for them to be able to maintain the aircraft,” Falk said. “So the opportunity for us before we start delivering production aircraft, we can learn from that, we can feed all that back, we can improve our maintenance procedures and basically when the aircraft is deployed deliver a much higher-quality, more efficient set of maintenance instructions. Plus, you've got Marines that have already used it, done it, learned.” https://news.usni.org/2019/05/17/navy-awards-sikorsky-1-13b-for-next-12-ch-53k-heavy-lift-helicopters

  • Serco Awarded $162 Million Contract to Support U.S. Navy’s Amphibious Warfare Program Office

    October 2, 2019 | International, Naval

    Serco Awarded $162 Million Contract to Support U.S. Navy’s Amphibious Warfare Program Office

    September 30, 2019 - Serco Inc., a provider of professional, technology and management services, announced today that the Company has been awarded a contract to continue its support to the U.S. Navy's Amphibious Warfare Program Office (PMS 377) with a full range of professional support services including Test & Evaluation Program Support, Technical Management Support, Acquisition & Life Cycle Management, and Integrated Logistics Support. This is the first contract award announcement for the Naval Systems business that Serco acquired from Alion Science & Technology Corporation. The recompete contract has a one-year base period plus four one-year option periods and is valued at $162 million, if all options are exercised. The business began providing direct program support to PMS 377 in 2009, and since then the program has grown from 8 personnel to approximately 220 today. Under the contract award, Serco will continue providing services that support the new construction and delivery of Navy amphibious ships and crafts, as well as the entire program lifecycle of four classes of craft, including multi-purpose (LHAR Class) ships, Landing Craft Utility (LCU 1610 and LCU 1700), Landing Craft Air Cushion (LCAC) and Ship Shore Connector (SSC). Services provided range from concept design and engineering; to program management for production and ship/craft delivery; to fleet support including Ship Life Extension Program (SLEP), regular overhauls and vessel retirement. Work will be performed at both CONUS and OCONUS locations. “This was a critical recompete win for Serco, as it reinforces our ability to deliver the Design, Integrate, Support lifecycle for the U.S. Navy,” said Dave Dacquino, Chairman and CEO of Serco Inc. “Serco is now one of the largest providers of naval modernization services in the U.S. and winning programs like PMS 377 will continue to be a strategic priority for the Company going forward.” The Company's services under this contract enable these vessels to be deployed on amphibious missions including airborne/and seaborne assaults on hostile shores, as well as a very important humanitarian support role for natural disasters as demonstrated during the critical recovery responses to hurricanes Katrina and Dorian. https://www.serco.com/news/media-releases/2019/serco-awarded-162-million-contract-to-support-us-navys-amphibious-warfare-program-office

  • Des parlementaires européens appellent à un budget de la défense renforcé

    July 16, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Des parlementaires européens appellent à un budget de la défense renforcé

    Dans une tribune publiée dans le quotidien belge Le Soir et intitulée « L'UE ne peut pas sacrifier son budget de défense commune », des parlementaires nationaux et européens demandent de faire de la sécurité des citoyens et de la défense de l'Union une des priorités de la discussion budgétaire européenne. De précédentes négociations ont en effet conduit à une réduction substantielle, du Fonds européen de Défense (passé de 13 milliards d'euros sur 7 ans selon le projet de la Commission à quelque 6 milliards suite aux premières négociations de l'automne 2019 et à 8 milliards aujourd'hui) et du projet de mobilité militaire (passé de 6,5 milliards sur 7 ans à 1,5 milliard aujourd'hui), rappellent-ils. « La pression sur les dépenses de défense européenne sera cependant encore plus forte demain dans un contexte, où les thèmes de résilience, sécurité sanitaire ou sécurité humaine attireront plus facilement les dépenses publiques. Qu'en sera-t-il alors de notre avenir ? », demandent ces parlementaires. Le Soir du 13 juillet 2020 - Le Monde du 13 juillet 2020

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