Pentagon, Lockheed Martin reach USD8.9 billion F-35 Lot 10 production deal

06 February 2017
The F-35A is the first of Joint Strike Fighter model to drop below a USD100 million unit cost. In LRIP Lot 10, the A-model costs USD94.6 million each. Source: USAF

The Pentagon and Lockheed Martin have reached a deal for the next lot of F-35 Lightning II Joint Strike Fighter aircraft that continues to incrementally reduce the jet's production costs.

The F-35's low-rate initial production (LRIP) Lot 10 includes a USD782 million total price reduction "when compared to Lot 9", the Joint Program Office (JPO) said on 3 February.

Officials said the contract includes 90 aircraft: 55 for the United States and 35 for international customers.

Approximate per variant unit prices - which include the jet, engine, and fees - are USD94.6 million for F-35A conventional take-off and landing variant, USD122.8 million for F-36B F-35B short take-off and vertical landing variant, and USD121.8 million for the F-35C carrier variant, according to the Pentagon.

According to Jane's calculation, this totals about USD5.5 billion for the Pentagon's 55 F-35s: 44 US Air Force F-35As at USD94.6 million each for a total of USD4.162 billion; 9 US Marine Corps F-35Bs at USD122.8 million each for a total of USD1.105 billion; and 2 US Navy F-35Cs at USD121.8 million each for a total of USD243.6 billion.

The 35 international F-35 aircraft in Lot 10 (3 F-35Bs and 32 F-35As) amount to about USD3.395 billion, for an estimated total of about USD8.9 billion for 90 F-35s in this deal.

Compared with the previous Lot 9 contract, the Pentagon said this marks a 7.3% cost reduction for the A-model, 6.7% reduction for the B-model, and 7.9% reduction for the C-model.

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