02 Oct 2018

New deal sees F-35 aircraft reach lowest price point

The US Department of Defense and Lockheed Martin have agreed an $11.5 billion contract for the production and delivery of 141 F-35 aircraft at the lowest per aircraft price in program history.

For the eleventh consecutive year, the cost of an F-35A was lowered.  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 (LRIP 10).

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 F-35 International Partners and 22 for F-35 Foreign Military Sales customers. Deliveries will begin in 2019.

Vice Admiral Mat Winter, F-35 Program Executive Officer, said: “Driving down cost is critical to the success of this program. We are delivering on our commitment to get the best price for taxpayers and warfighters.

“This agreement for the next lot of F-35s represents a fair deal for the U.S. Government, our international partnership and industry.  We remain focused on aggressively reducing F-35 cost and delivering best value.”

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