The F-35 Joint Program Office (JPO) awarded Lockheed Martin a $22.7 billion Undefintiized Contract Action to fund more than 250 F-35 Lightning II stealth fighter aircraft, on Nov. 14.
This is a significant milestone for the program that reduces costs and demonstrates increased program maturity.
The contract action was awarded as a modification to the previously-awarded Low-Rate Initial Production Lot 12 (LRIP 12) advance acquisition contract. This award directs the continuation of production activity for all aircraft in the F-35 program’s LRIP 12 contract, as well as aircraft for several international customers in LRIPs 12, 13 and 14 (Fiscal Years 2018, 2019, 2020). This contracting funding strategy provides stability and a steady production rate over a defined period of time, which enables industry to plan and make investments that reduce overall cost and achieve greater manufacturing efficiencies.
The contract action obligates $6 billion in funding from the U.S. Services, International Partners and Foreign Military Sales (FMS) customers for 255 F-35 aircraft. F-35 aircraft allocation includes; 106 F-35s for the U.S. Services (64 F-35As Air Force; 26 F-35Bs Marine Corps; 16 F-35Cs Navy), 89 F-35s for International Partners (71 F-35As, 18 F-35 Bs), 60 F-35As for FMS customers. LRIP 12, 13 and 14 aircraft deliveries will begin in 2020, 2021 and 2022, respectively.
Work will be performed in Fort Worth, Texas (57 percent); El Segundo, California (14 percent); Warton, United Kingdom (9 percent); Cameri, Italy (4 percent); Orlando, Florida (4 percent); Nashua, New Hampshire (3 percent); Baltimore, Maryland (3 percent); San Diego, California (2 percent); Nagoya, Japan (2 percent); and various locations outside the continental U.S. (2 percent), and is expected to be completed in March 2023.
This award brings the Department of Defense into compliance with Congressional direction by placing all 20 FY18 (Lot 12) and 16 FY19 (Lot 13) congressional plus up aircraft on contract. It also establishes a $22.7 billion not-to-exceed contract threshold for LRIP 12 aircraft. This Undefinitized Contract Action (UCA) enables F-35 production to continue efficiently while the government and industry teams reach contract agreement. We are committed to reducing costs, and confident the final negotiated LRIP 12 aircraft unit prices will be less than LRIP 11, and enable us to deliver on our goal of an $80 million F-35A by 2020. In parallel, a separate Lot 12 propulsion UCA between the JPO and Pratt & Whitney is currently being negotiated.