F-35 DoD, Lockheed Martin $11.5 billion contract aims to reduce cost of aircraft

FORT WORTH, Texas. U.S. Department of Defense (DoD) officials signed a contract with Lockheed Martin for the production and delivery of 141 F-35 aircraft for $11.5 billion.

The F-35A unit price including aircraft, engine and fee, is $89.2 million. This represents a 5.4 percent reduction from the $94.3 million it cost for an F-35A in Low-Rate Initial Production Lot 10 ( 10), Lockheed Martin officials say.

In LRIP 11, the F-35B unit cost was lowered to $115.5 million. This represents a 5.7 percent reduction from the $122.4 million it cost for the short-takeoff and landing variant in LRIP 10. The F-35C unit cost was lowered to $107.7 million. This represents an 11.1 percent reduction from the $121.2 million it cost for the carrier variant in LRIP 10. The LRIP 11 agreement funds 91 aircraft for the U.S. Services, 28 for International Partners and 22 for F-35 Foreign Military Sales customers. Deliveries will begin in 2019.

"This agreement marks a significant step forward for the F-35 program as we continue to increase production, reduce costs, and deliver transformational capabilities to our men and women in uniform," says Greg Ulmer, F-35 Vice President and General Manager. "As production ramps up, and we implement additional cost savings initiatives, we are on track to reduce the cost of the F-35A to $80 million by 2020, which is equal to or less than legacy aircraft, while providing a major leap in capability."

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