Back to news

October 29, 2019 | International, Aerospace

Pentagon and Lockheed Martin reach agreement reducing F-35A cost by 12.8 per cent

The F-35 Joint Program Office and Lockheed Martin finalized a US$34 billion agreement for the production and delivery of 478 F-35s at the lowest aircraft price during the history of the program. This contract includes all U.S., international partners and foreign military sales aircraft in Lots 12, 13 and 14.

In the agreement, the F-35 Enterprise meets and exceeds its long-stated cost reduction targets for each variant – and the F-35A unit price, including aircraft and engine, is now below US$80 million in both Lot 13 and Lot 14, the F-35A unit cost represents an estimated overall 12.8 per cent reduction from Lot 11 costs for the conventional landing variant, and an average of 12.7 per cent savings across all three variants from Lot 11 to 14.

“Driving down cost is critical to the success of this program. I am excited that the F-35 Joint Program Office and Lockheed Martin have agreed on this landmark three-lot deal. This agreement achieves an average 12.7 per cent cost reduction across all three variants and gets us below US$80 Million for a USAF F-35A by Lot 13 — one lot earlier than planned,” said Air Force LGen Eric Fick, F-35 program executive officer. “This US$34 billion agreement is a truly historic milestone for the F-35 Enterprise.”

The agreement includes 291 aircraft for the U.S. Services, 127 for F-35 international partners, and 60 for F-35 foreign military sales customers. Price details include:

  • F-35A — Lot 12: US$82.4M; Lot 13: US$79.2M; Lot 14: US$77.9M; % reduction from Lot 11: 12.8 per cent
  • F-35B — Lot 12: US$108M; Lot 13: US$104.8M; Lot 14: US$101.3M; % reduction from Lot 11: 12.3 per cent
  • F-35C — Lot 12: US$103.1M; Lot 13: US$98.1M; Lot 14: US$94.4M; % reduction from Lot 11: 13.2 per cent

“With smart acquisition strategies, strong government-industry partnership and a relentless focus on quality and cost reduction, the F-35 Enterprise has successfully reduced procurement costs of the fifth generation F-35 to equal or less than fourth generation legacy aircraft,” said Greg Ulmer, Lockheed Martin, F-35 program vice-president and general manager. “With the F-35A unit cost now below US$80 million in Lot 13, we were able to exceed our long-standing cost reduction commitment one year earlier than planned.”

The sub US$80 million unit recurring flyaway cost for an F-35 represents an integrated acquisition price for the fifth generation weapon system. With embedded sensors and targeting pods, this F-35 unit price includes items that add additional procurement and sustainment costs to legacy fourth generation aircraft.

Program Progress

With more than 450 aircraft operating from 19 bases around the globe, the F-35 is playing a critical role in today's global security environment. More than 910 pilots and 8,350 maintainers have been trained, and the F-35 fleet has surpassed more than 220,000 cumulative flight hours. Eight nations have F-35s operating from a base on their home soil and seven services have declared initial operating capability.

In addition to strengthening global security and partnerships, the F-35 provides economic stability to the U.S. and international partners by creating jobs, commerce and security, and contributing to the global trade balance. The F-35 is built by thousands of men and women in America and around the world. With more than 1,400 suppliers in 46 states and Puerto Rico, the F-35 Program supports more than 220,000 direct and indirect jobs in the U.S. alone. The program also includes more than 100 international suppliers, creating or sustaining thousands of jobs.

https://www.skiesmag.com/press-releases/pentagon-and-lockheed-martin-reach-agreement-reducing-f-35a-cost-by-12-8-per-cent

On the same subject

  • Army Reveals Timeline for Fielding New Infantry Weapons

    July 19, 2019 | International, Other Defence

    Army Reveals Timeline for Fielding New Infantry Weapons

    By Matthew Cox The Army general in charge of modernizing soldier lethality said recently he is confident that the service will begin replacing both M249 squad automatic weapons and the M4 carbines in infantry brigades in 2023. Army testers are currently shooting the first 6.8mm rounds through a variety of rifle and automatic rifle prototypes of the Next Generation Squad Weapon (NGSW) at Aberdeen Proving Ground, Maryland, Brig. Gen. David Hodne told Military.com at a June 16 Army Futures Command media event. The service's goal is to select a final design for both weapons from a single provider in the first quarter of 2022 and begin replacing M4s and M249s in an infantry brigade combat team (IBCT) in the first quarter of 2023, said Hodne, director of the Army's Soldier Lethality Cross Functional Team. "We are going to do both," he said, explaining the Army won't be sure how long it will take to equip that first IBCT until it can evaluate the winner's production capability. "The first unit equipped spans a period of months, and that first unit equipped will include both [weapons]," Hodne said. The NGSW effort is part of the modernization strategy being orchestrated by Army Futures Command (AFC). Based in Austin, Texas, the command will reach full operating capability as of July 31, AFC Commander Gen. Mike Murray told reporters at the event. Both the NGSW carbine and automatic rifle are being designed to fire a special, government-designed 6.8mm projectile that Army leaders say will penetrate modern enemy body armor at greater distances than the current M855A1 5.56mm Enhanced Performance Round. The Army intends to conduct live-fire tests on NGSW prototypes from several gun makers until August, when it is scheduled to select up to three vendors that will move to the next phase of testing, Hodne said. The August down-select will involve the companies that participated in the Army's second prototyping opportunity notice (PON), released in January, that directed gun makers to develop prototypes of both the rifle and auto rifle versions of the NGSW to ensure both work with the common 6.8mm projectile. Army officials would not release the names of the companies chosen to make prototypes for the second PON effort. Last July, the service awarded contracts for the first PON effort to several companies, but that effort involved only prototypes for the automatic rifle version of the NGSW. "We learned a lot in this process. ... Industry took a very hard problem, and they have developed some very innovative solutions," Hodne said. "The first prototyping opportunity notice was centered around an automatic rifle. What we learned was -- to get the best rifle and the best automatic rifle -- we realized the approach had to be centered around a common cartridge that was supportable by both systems." The Army left it up to vendors to design the type of 6.8mm cartridge they wanted to use in their prototypes, Hodne said, adding that some gun makers went with "traditional bottleneck" brass cartridges while others used newer, case-telescoped cartridges. Another part of the NGSW effort is the advanced fire control system, which is being designed to calculate range to target, atmospheric conditions, and the ballistics of both weapon and ammunition, according to the May 30 prototype opportunity notice. The Army expects to receive fire-control prototypes sometime in October, according to Brig. Gen. Anthony Potts, commander of Program Executive Office Soldier. "People as, 'Is the technology going to be there?' " Potts said. "The answer is yes. ... I am very enthused about next generation squad weapon ... it's not just an evolution in capability. It's a revolution in capability. It really will change the lethality of our squads." https://www.military.com/daily-news/2019/07/17/army-reveals-timeline-fielding-new-infantry-weapons.html

  • Army Makes Prudent Cuts Funding for Research Procurement

    May 31, 2021 | International, Aerospace, Naval, Land, C4ISR, Security

    Army Makes Prudent Cuts Funding for Research Procurement

    Army Makes Prudent Cuts Funding for Research Procurement

  • Contract Awards by US Department of Defense - October 24, 2018

    October 25, 2018 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - October 24, 2018

    DEFENSE LOGISTICS AGENCY Honeywell International Inc., Phoenix, Arizona, has been awarded an estimated $1,036,726,575 firm-fixed-price requirements contract for support of the following platforms: Ground Start Carts, C-130 Auxiliary Power Units (APU), B-2 APU, F-15 components, A-10 APU, E-3 APU, B-1 APU and F-16 turbine power units. This was a sole-source acquisition using justification 10 U.S. Code 2304(c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a three-year, six-month base contract with one three-year option, and one three-year and six-month option period. Using military service is Air Force. Location of performance is Utah, with a July 31, 2028, performance completion date. Type of appropriation is fiscal 2019 through 2029 Air Force working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania (SPRPA1-18-D-001U). NAVY Sikorsky Aircraft Corp., Stratford, Connecticut, is awarded a $717,410,825 firm-fixed-priced, performance-based logistics requirements contract for logistics and repair support for 98 components in support of CH-53 and MH-53 aircraft weapon replaceable assembly components and their related shop replaceable assembly components. This contract includes a 50-month base period with no options. Work will be performed in Stratford, Connecticut (75 percent); and Cherry Point, North Carolina (25 percent). Work is expected to be completed by December 2022. Working capital (Navy) funds in the amount of $142,662,162 will be issued for delivery order (N00383-19-F-0U00) that will be awarded concurrently with the contract. Fiscal 2018-2022 working capital (Navy) funds will be obligated to fund delivery orders as they are issued, and funds will not expire at the end of the current fiscal year. One source was solicited for this non-competitive requirement pursuant to the authority set forth in 10 U.S. Code 2304 (c)(1), in accordance with Federal Acquisition Regulation 6.302-1, with one offer received. Naval Supply Systems Command Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity (N00383-19-D-U001). Canadian Commercial Corp., Ontario, Canada, is awarded a $27,673,372 firm-fixed-price, indefinite-delivery/indefinite-quantity single-award contract for the Mk 200 Mod 0 Propelling Charge. This contract includes options which, if exercised, would bring the cumulative value of the contract to $74,920,000. This contract involves foreign military sales to Australia and India. Work will be performed by General Dynamics Ordnance and Tactical Systems in Quebec, Canada, and is expected to be completed by November 2019. Fiscal 2018 procurement of ammunition (Navy and Marine Corps) funding in the amount of $15,001,914; fiscal 2019 procurement of ammunition (Navy and Marine Corps) funding in the amount of $7,337,384; and foreign military sales (Australia) funding in the amount of $5,334,074 will be obligated on the first delivery order at time of award and will not expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website, with three offers received. The Naval Surface Warfare Center, Indian Head Explosive Ordnance Disposal Technology Division, Indian Head, Maryland, is the contracting activity (N00174-19-D-0002). Northrop Grumman Systems Corp., Charlottesville, Virginia, is awarded an $18,118,858 firm-fixed-price contract to provide common Integrated Bridge and Navigation Systems (IBNS) for the DDG-51 New Construction Ship Program and DDG-51 Midlife Modernization Program. The IBNS is a hull, mechanical and electrical upgrade and part of the comprehensive plan to modernize the DDG-51 class to ensure the ships remain combat relevant and affordable throughout their life. This contract will serve as the base hardware production contract for IBNS systems. The contract includes options which, if exercised, would bring the cumulative value to $163,963,639. Work will be performed in Charlottesville, Virginia, and is expected to be completed by February 2020. Fiscal 2018 other procurement (Navy); and fiscal 2018 and 2016 shipbuilding and conversion (Navy) funding in the total amount of $18,118,858 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website, with one offer received. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-19-C-4101). AIR FORCE KIRA Training Services LLC, Boulder, Colorado, has been awarded a $221,379,030 firm-fixed-price contract for civil engineering services. This contract provides for engineering services, installation management services, facilities/infrastructure maintenance and repair services, emergency management services, and housing management services. Work will be performed at the U.S. Air Force Academy, Colorado, and is expected to be completed by Nov. 30, 2025. This award is the result of a competitive acquisition with 12 proposals received. Fiscal 2019 operations and maintenance funds in the amount of $100,134 will be obligated on Oct. 1, 2018. The 10th Contracting Squadron, U.S. Air Force Academy, Colorado, is the contracting activity (FA7000-19-C-0001). United Launch Services, Centennial, Colorado, has been awarded a $152,429,417 firm-fixed-price contract for Evolved Expendable Launch Vehicle Delta IV heavy launch services. This contract provides launch vehicle production services for National Reconnaissance Office Launch Mission One. Work will be performed in Centennial, Colorado; and Decatur, Alabama, and the launch will occur in Cape Canaveral Air Force Station, Florida; or Vandenberg Air Force Base, California. The work is expected to be completed by June 30, 2021. This award is the result of a sole-source acquisition. Fiscal 2018 missile procurement funds in the amount of $152,429,417 are being obligated at the time of award. Space and Missile Systems Center Los Angeles Air Force Station, California, is the contracting activity (FA8811-19-C-0002). L3 Technologies Inc., Salt Lake City, Utah, has been awarded a $55,382,155 firm-fixed-price, cost-plus fixed-fee, cost-reimbursable contract for the Organic Depot Activation of the MQ-9 communications and data link parts at Tobyhanna Army Depot, Pennsylvania; and Warner-Robins Air Logistics Complex, Georgia. Work will be performed at Tobyhanna Army Depot and Warner-Robins Air Logistics Complex, and is expected to be completed by Oct 21, 2021. This award is the result of a sole-source acquisition. Fiscal 2017 and 2018 aircraft procurement funds in the amount of $44,425,521 are being obligated at time of award. The Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8620-19-C-2008). DynCorp International LLC, McLean, Virginia, has been awarded a $22,500,000 indefinite-delivery/indefinite-quantity contract for Egypt personnel support services. This contract provides for housing, transportation, security, vehicles and labor to support defense contractor employees and department of defense employees. Work will be performed in Egypt and is expected to be completed by Sept. 24, 2023. This contract involves foreign military sales (FMS) to Egypt and is the result of a sole-source acquisition. FMS funds in the amount of $2,742,237 are being obligated at the time of award. Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8630-19-D-5016). TF Powers Construction Co., Fargo, North Dakota, has been awarded a $12,374,000 firm-fixed-price contract for construction services. Contractor will provide all plant, labor, materials, equipment, supplies and supervision necessary for the construction and renovation of building 541 for the Ground Segment Modernization Program: to replace building systems and construct server rooms, offices, auditoriums and conference rooms, a mission control/operation center, remote equipment control rooms, and substantial communications infrastructure all built to security standards. Work will be performed at Grand Forks Air Force Base, North Dakota, and is expected to be completed by Dec. 12, 2019. This award is the result of a competitive acquisition and four offers received. Fiscal 2019 operations and maintenance funds in the amount of $12,374,000 are being obligated at the time of award. The 319th Contracting Flight, Grand Forks AFB, North Dakota, is the contracting activity (FA4659-19-C-C001). ARMY HDR Engineering, Omaha, Nebraska (W912UM-19-D-0001); Jacobs Government Services Co., Pasadena (W912UM-19-D-0002); Stanley-WSP JV, Muscatine, Iowa (W912UM-19-D-0003); Tetra Tech Inc., Marlborough, Massachusetts (W912UM-19-D-0004); and Thomas J. Davis Inc.,* Seguin, Texas (W912UM-19-D-0005), will compete for each order of the $100,000,000 firm-fixed-price contract for architect and engineer services. Bids were solicited via the internet with 10 received. Work locations and funding will be determined with each order, with an estimated completion date of Oct. 23, 2023. U.S. Army Corps of Engineers, Seoul, Republic of Korea, is the contracting activity. Norfolk Dredging Co., Chesapeake, Virginia, was awarded a $13,501,500 firm-fixed-price contract for maintenance dredging of the Delaware River. Bids were solicited via the internet with one received. Work will be performed in New Castle, Delaware, with an estimated completion date of March 13, 2019. Fiscal 2016, 2017, 2018 and 2019 operations and maintenance, Army funds in the amount of $13,501,500 were obligated at the time of the award. U.S. Army Corps of Engineers, Philadelphia, Pennsylvania, is the contracting activity (W912BU-19-C-0002). West Consultants Inc.,* San Diego, California (W912BV-19-D-0001); and Halff Associates Inc., Fort Worth, Texas (W912BV-19-D-0002), will compete for each order of the $8,000,000 firm-fixed-price contract for engineering, design, and construction phase services for hydrologic and hydraulic engineering, design, modeling and manual development services. Bids were solicited via the internet with six received. Work locations and funding will be determined with each order, with an estimated completion date of Oct. 21, 2021. U.S. Army Corps of Engineers, Tulsa Oklahoma, is the contracting activity. *Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1671864/

All news