The Pentagon on Friday finalized a long-awaited contract to Lockheed Martin [LMT] for the fifth batch of F-35s in low-rate production, formally ending a year of contentious negotiations for the 32 aircraft.
The $3.8 billion contract covers 22 of the Air Force’s F-35A conventional takeoff and landing variants, three F-35B short takeoff and vertical landing versions for the Marine Corps, and seven F-35C carrier variants for the Navy, said Joe DellaVedova, a spokesman for the Joint Strike Fighter acquisition office at the Pentagon.
Lockheed Martin had already begun work on the fifth low-rate initial production (LRIP) phase of the program after receiving the nod from the Pentagon in 2011, even though the financial terms had not been ironed out. The government and prime contractor had been engaged in difficult negotiations, largely over how the burden of redevelopment–or concurrency–cost should be shared.
The outgoing program executive officer for the F-35, Vice Adm. Dave Venlet, signaled two weeks ago that a tentative agreement had been reached.
“It’s been a long journey, but I’m pleased we’ve achieved an agreement that is beneficial to the government and Lockheed Martin,” Venlet said Nov. 30.
LRIP 5 will bring the total number of F-35s built in low-rate production to 95.
“With the F-35 Low Rate Initial Production 5 (LRIP-5) contract finalized, we look forward to completing the build of these 5th generation aircraft and delivering them to our war fighters defending both the U.S. and our allies,” Orlando Carvalho, Lockheed Martin’s F-35 program general manager, said Friday.
The F-35 program has been mired in controversy over massive cost overruns and delays. It is now estimated it will cost $395 billion to produce the planned 2,443 fighter jets with a total life time cost, which includes maintenance and operations, expected to exceed $1 trillion over the next five decades.