Initial F-35 agreement
Lockheed Martin and the U.S. Defense Department have entered an initial production and sustainment agreement covering at least 850 F-35 Lightning II fighter jets over 10 years. The Defense Department said the arrangement also covers international orders, initial spare parts and modification kits. It is not yet an order: Lockheed Martin said the parties must receive multiyear authority in coming months and finalize pricing, schedules and other contract terms through a formal award.
Production and company funding
The agreement sets an objective of sustaining annual F-35 production at 156 aircraft. Lockheed Martin said it would self-fund at least $7 billion in initiatives supporting the program. The company estimated that the arrangement could support 317,000 U.S. jobs and nearly $79 billion in annual economic activity over the decade, and said it expected the work to reduce production costs and ease supply-chain constraints.
Pending formal award
Lockheed Martin said contract terms, pricing and schedules still require a formal award after multiyear authority is granted. Until then, the reported volume is not a finalized order, and the companies have not announced the contract value or payment terms.
Planned industrial effects
Under Secretary of Defense Michael Duffey said the agreement aligns financial incentives with performance and is intended to help equip U.S. warfighters. Lockheed Martin described the industrial effects as expectations rather than completed outcomes, saying it anticipates lower production costs and fewer supply-chain constraints.
Share this article
