Back to news

May 8, 2019 | International, Aerospace

Price Drop: Lockheed Pitches $80M F-35A to Pentagon

BY MARCUS WEISGERBER

That's the cheapest price yet for the Air Force version of the fifth-generation jet.

Lockheed Martin is offering to come down more than 10% on the price of the least-expensive F-35 as it negotiates the largest sale yet of Joint Strike Fighters.

The company is offering to sell the Pentagon about 100 F-35As — the version flown by the U.S. Air Force and most allies — for less than $80 million each, down from $89.5 million apiece in the deal signed last September. That price point suggests the company will meet its 2020 price targets for the warplane, whose lengthy development and higher-than-expected initial costs have drawn much criticism.

The 100 F-35A are part of a block buy of three production lots of the jets — in all, roughly 450 jets. The order will include F-35Bs for the Marine Corps, F-35Cs for the U.S. Navy, and a variety of the jets for allies.

“We currently have an offer submitted to the Department of Defense for Lots 12-14 that is below the $80 million F-35A for lot 14 in 2020, per our longstanding commitment,” company spokesman Mike Friedman wrote in an email Tuesday. “This represents equal or less than the procurement cost of legacy jets, while providing a generational leap in capability.”

The latest round of F-35 negotiations come as the Air Force is planning to buy new Boeing-made F-15 Eagle fighters for the first time in two decades. While the new Eagles would replace existing F-15s, Lockheed has arguedthe F-35 is a cheaper alternative and offers stealth and other technology that comes standard in a more modern, fifth-generation warplane.

The proposed purchase of three batches of jets simultaneously is meant to get a better price than past years' annual purchases of a few dozen of the jets. A 2018 Rand study put the potential savings at more than $2 billion.

Lockheed has delivered more than 385 F-35s to the U.S. Air Force, Navy, Marine Corps and American allies.

“As we ramp up production, each year we have lowered cost, reduced build time, improved quality and on time delivery,” Friedman said. “Moving forward, we are focused on and taking action to further reduce costs across both production and sustainment.”

https://www.defenseone.com/business/2019/05/price-drop-lockheed-pitches-80m-f-35a-pentagon/156825

On the same subject

  • Australia seeks industry input on infantry fighting vehicle project

    June 21, 2018 | International, Land

    Australia seeks industry input on infantry fighting vehicle project

    Jon Grevatt Key Points Australian DoD seeks industry advice on tender timeline for Land 400 Phase 3 procurement project Industry feedback intended to support better planning and to reduce the cost of tendering The Australian Department of Defence (DoD) is looking to engage with local industry on the schedule to issue a tender in support of a multi-billion dollar programme to procure close combat capability under Project Land 400 Phase 3. The DoD said on 20 June that it is inviting local companies to review and comment on the timeline for project through which it will replace the Australian Army's M113AS4 armoured personnel carriers (APCs) with up to 450 modern infantry fighting vehicles and 17 manoeuvre support vehicles. A draft request for tender (RFT) document for the programme has also been issued as part of the engagement. According to the DoD's 2016 Integrated Investment Program, which identifies defence investments in the decade to 2026, the Land 400 Phase 3 acquisition is worth between AUD10-AUD15 billion (USD7.4-USD11 billion). The DoD issued a request for information (RFI) for the project in November 2015, while government gave ‘first pass' or preliminary approval for the procurement in March 2018. Commenting on the decision to seek industry's advice on the tender schedule, Australia's Minister for Defence Industry Christopher Pyne said that it would lead to a better informed tender process and reduce the cost of tendering for local industry. “The proposed tender timeline identifies key milestones in the tender evaluation,” said Pyne. “We welcome industry's feedback on the timeline to better enable both industry and [the DoD] to plan for this significant boost to capability.” The DoD indicated that the move to seek industry advice on the Land 400 Phase 3 tender timeline was requested by local companies during the programme to acquire more than 200 combat reconnaissance vehicles under Land 400 Phase 2. http://www.janes.com/article/81187/australia-seeks-industry-input-on-infantry-fighting-vehicle-project

  • Hijack Loader Malware Employs Process Hollowing, UAC Bypass in Latest Version

    May 8, 2024 | International, Security

    Hijack Loader Malware Employs Process Hollowing, UAC Bypass in Latest Version

    A newer version of the Hijack Loader malware has been observed with updated anti-analysis techniques to evade detection.

  • British government to nationalize steel components maker in $3.54 million deal

    July 29, 2021 | International, Naval

    British government to nationalize steel components maker in $3.54 million deal

    The deal, which must be approved by shareholders, assures the future of a company that is a key strategic industrial asset.

All news