The Pentagon and Lockheed Martin [LMT] on Friday reached a deal on a new batch of F-35s that totals roughly $9 billion.
The total low rate initial production (LRIP) lot 10 deal includes 90 aircraft—55 jets for the United States and 35 jets for international partners and foreign military sale (FMS) customers, according to a Defense Department statement. DoD said LRIP 10 unit costs were $94.6 million for the Air Force’s F-35A; $122.8 million for the Marine Corps’ F-35B short takeoff and vertical landing (STOVL) and $121.8 million for the Navy’s F-35C aircraft carrier variant.
Unit prices include jet, engine and company profit. Lockheed Martin said the price tag of F-35A falling beneath $100 million per jet is significant as the F-35A comprises 85 percent of the program.
DoD said LRIP 10 includes 44 F-35As, nine F-35Bs and two F-35Cs. That means the total United States portion of LRIP 10 is worth $5.5 billion. Of the 35 jets for international and FMS partners, three F-35Bs will go to the United Kingdom; six F-35As are for Norway; eight F-35As for Australia; two F-35As four to Turkey; four F-35As to Japan; six F-35As to Israel; and six F-35As for South Korea. The total international portion of the LRIP 10 deal was roughly $3.4 billion.
LRIP 9 unit prices, according to DoD, were $102.1 million for F-35A, $131.6 million for F-35B and $132.2 million for F-35C. That means LRIP 10 unit prices for F-35A decreased 7.3 percent, F-35B decreased 6.7 percent and F-35C decreased 7.9 percent.
Lockheed Martin said in a statement that LRIP 10 is the first time the unit price of a F-35A conventional variant fell below $100 million. LRIP 9 prices were reached in mid December when the Pentagon issued a unilateral contract action, or a take-it-or-leave-it offer, to Lockheed Martin, who publicly objected to the deal, but which ultimately accepted.
DoD did not return requests for comment Friday. The F-35 is developed by Lockheed Martin with subcontractors BAE Systems and Northrop Grumman [NOC].