Diary

Pentagon: Latest F-35 Deal Shaves Unit Costs by 4%

The Pentagon and Lockheed Martin announced a new production contract for the F-35 Lightning II Joint Strike Fighter this week, with the new purchase deal cutting costs for each aircraft by close to four percent. The contract will include the Defense Department procuring 43 F-35 jets.

From DoD Buzz coverage:

Under the previous production contract, the Pentagon in 2013 agreed to pay $112 million per F-35A, the Air Force’s version designed for conventional runways; $139 million per F-35B, the Marine Corps’ jump-set variant; and $130 million per F-35C; the Navy’s version designed for aircraft carriers.

A 3.6-percent reduction would reduce the figures to about $108 million per F-35A, $134 million per F-35B and $125 million per F-35C.

The price tags, known as unit recurring flyaway costs in acquisition parlance, include the airframe, engine, mission systems, profit and concurrency. They don’t include certain other expenses, including those for research and development.

The new contract also includes production deals for F-35s for international partners, including the first two jets for Israel, the first four for Japan, two for Norway, two for Italy and four F-35Bs for the United Kingdom.

Click here to read full coverage of the new deal, and visit F35.com for full information on the F-35 Lightning II Joint Strike Fighter program.