15 novembre 2018 | International, Aérospatial

Lockheed Gets Interim Payment for First Multiyear F-35 Contract: Pentagon

By Reuters

WASHINGTON — Lockheed Martin Corp has won a preliminary contract valued at up to $22.7 billion to build a batch of 255 F-35 jets for the U.S. military and its allies, the U.S. Defense Department said on Wednesday.

The department said the deal would allow Lockheed to receive $6 billion in funding immediately, a move aimed at preventing major delays in production of the new stealthy fighter jets.

This contract is the first to lock in multiyear commitments from U.S. allies as Lockheed anticipates that buying components in larger quantities will help move the price of the most common F-35 jet to below $80 million by 2020. The most common variation of the jet, the F-35 A, had a price of $89.2 million after the most recent round of contract negotiations announced in September.

Lockheed is developing and building three models of the new warplanes for the U.S. military and 10 other countries that have signed up to buy the jets: Britain, Australia, Italy, Turkey, Norway, the Netherlands, Israel, Japan, South Korea and Belgium.

The Pentagon's chief arms buyer, Ellen Lord, told Reuters on Tuesday that she expected to finalize the interim terms of the deal, known as an "undefinitized contract action" or UCA, with Lockheed, its No. 1 supplier, by the spring of next year.

A Lockheed representative said: "This is a smart approach for the taxpayer, the warfighter and for industry."

According to the Pentagon, Wednesday's agreement means that U.S. allies buy 149 jets over the three-year period. In the United States' one-year deal, it will buy the remaining 106 jets for delivery beginning in 2020.

The U.S. government will continue to buy jets in annual contracts, but is also purchasing components for future-year jets and will also benefit from the economies of scale allowed under the multiyear contract.

The three-year deal, known as the "block buy" among the United States and allies, has been said to be worth more than $37 billion and encompass a record 440 jets.

Wednesday's contract agrees to a high-water mark of $22.7 billion for all of the 255 jets, but that dollar figure is expected to come down during the negotiations while the jet count is considered a minimum commitment.

The interim payment authorized on Wednesday will be deducted from the total contract when the two sides reach a final agreement.

The Pentagon is negotiating a separate contract with Pratt & Whitney, a unit of United Technologies Corp, for engines to power the jets.

(Reporting by Mike Stone in Washington; Editing by Matthew Lewis)

https://www.nytimes.com/reuters/2018/11/14/business/14reuters-usa-lockheed-pentagon.html

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  • Contract Awards by US Department of Defense - March 17, 2020

    18 mars 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

    Contract Awards by US Department of Defense - March 17, 2020

    ARMY Phoenix Logistics Inc.,* Gilbert, Arizona, was awarded a $516,000,000 cost-no-fee, cost-plus-fixed-fee, cost-plus-incentive-fee, firm-fixed-price contract to provide capabilities to the Joint Land Component Constructive Training Capability across the range of warfighting functions. Bids were solicited via the internet with two received. Work locations and funding will be determined with each order, with an estimated completion date of March 16, 2030. U.S. Army Contracting Command, Orlando, Florida, is the contracting activity (W900KK-20-D-0010). Rock Island Integrated Services, Rock Island, Illinois, was awarded a $7,463,098 modification (P00024) to contract W52P1-J-19-C-5003 for base operations support services. Bids were solicited via the internet with one received. Work will be performed in Rock Island, Illinois, with an estimated completion date of March 14, 2021. Army Contracting Command, Rock Island, Illinois, is the contracting activity. NAVY DynCorp International LLC, Fort Worth, Texas, is awarded a $104,085,696 modification (P00050) to a previously awarded firm-fixed-price, cost-plus-fixed-fee and cost reimbursable contract (N00421-17-C-0033). This modification exercises an option to provide maintenance and logistics support on all aircraft and support equipment for which the Naval Test Wing Atlantic has maintenance responsibility. Work will be performed in Patuxent River, Maryland, and is expected to be complete by March 2021. Fiscal 2020 working capital (Navy) funds in the amount of $47,233,324; fiscal 2020 operations and maintenance (Navy) funds in the amount of $13,038,915; and fiscal 2020 research, development, test and evaluation (Navy) funds in the amount of $921,844 will be obligated at the time of award, $13,038,915 of which will expire at the end of the current fiscal year. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity. Honeywell International Inc., Defense & Space, Tempe, Arizona, is awarded $72,817,953 for an indefinite-delivery, performance-based logistics requirements contract for the repair, replacement and program support for auxiliary power units used on combat jets, maritime surveillance and cargo aircraft models (the F/A-18, A-G, P-3 and C-2). Work will be performed in Jacksonville, Florida (50%); Cherry Point, North Carolina (39%); and various contractor facilities (11%). Work is expected to be complete by March 2022. The work performed also provides coverage for the main fuel controls and electronic control unit used on the F/A-18 and the P-3 engine driven compressor. This contract includes a two-year base period with no options. Annual working capital funds (Navy) in the amount of $36,555,518 will be obligated for delivery order (N00383-20-F-0WP0) that will be awarded concurrently with the contract. Funds will not expire at the end of the current fiscal year. One company was solicited for this non-competitive requirement under authority 10 U.S. Code 2304 (c)(1) and Federal Acquisition Regulation 6.302-1, with one offer received. Naval Supply Systems Command Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity (N00383-20-D-WP01). Lockheed Martin Rotary and Mission Systems, Manassas, Virginia, is awarded a $65,815,333 cost-plus-incentive, fixed-price-incentive modification to previously awarded contract N00024-13-C-5225 for the production and engineering services of the Navy's Undersea Warfare Systems (model AN/SQQ-89A(V)15) for surface ships. Work will be performed in Lemont Furnace, Pennsylvania (54%); Clearwater, Florida (22%); Syracuse, New York (7%); Manassas, Virginia (6%); Hauppauge, New York (5%); Oswego, New York (5%); and Tewksbury, Massachusetts (1%), and is expected to be complete by May 2022. 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  • BAE Systems awarded £2.4 billion munitions contract to equip UK Armed Forces

    2 décembre 2020 | International, Terrestre

    BAE Systems awarded £2.4 billion munitions contract to equip UK Armed Forces

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