NATIONAL HARBOR, Md.–Though the Air Force is interested in a eventual multi-year “block buy” of F-35A conventional variant aircraft, it won’t be able to participate in one by fiscal year 2018 due to budget “misalignment,” according to a key officer.
F-35 Integration Office Director Air Force Maj. Gen. Jeffrey Harrigian on Monday cited two reasons for this misalignment: one is the Air Force has just about solidified its budget for FY ’17 and would have to “crack” it open to find the money necessary to participate in a FY ’18 F-35 block buy.
The second reason, Harrigian said, is the continuing resolution (CR) currently hanging over the heads of Congress and the federal government. He called this a “perfect example” of the budget misalignment preventing a F-35 block buy in FY ’18. The fiscal year ends Sept. 30 and lawmakers don’t seem anxious to pass authorization and appropriatons bills for FY ’16. One consistent theme here at the Air Force Association’s (AFA) Air and Space conference has been service leaders hammering a potential CR as damaging to the Air Force.
“Naturally, we’re interested in (the block buy),” Harrigian said. “There’s certainly some benefit that would be realized should we be able to execute that. Our challenge clearly though is the fiscal constraints that we’re under right now.”
Under Secretary of Defense For Acquisition, Technology and Logistics (AT&L) Frank Kendall said in May the Pentagon planned on seeking congressional approval for a three-year block buy of F-35s that could help drive down prices of the aircraft. The buy would span FY’s ’18-’20 and include up to 150 jets per year. Both international partners and foreign military sale (FMS) customers would be eligible.
By consolidating three years of orders into one contract, F-35 prime contractor Lockheed Martin [LMT] and its suppliers could achieve economies of scale and produce aircraft more efficiently, which, in turn, cuts the cost of the plane for customers. Kendall predicted “double-digit savings” were likely if a deal could be reached (Defense Daily, May 29).