Nov 24, 2014

Pentagon, Lockheed Finalize 8th F-35 Lot

The Pentagon today announced it has reached a final agreement with Lockheed Martin on the eighth low-rate initial production (LRIP-8) lot of F-35 joint strike fighters.
The contract covers 43 production models, with a total value of $4.7 billion. That dollar figure includes half a billion in advanced procurement funding. Under the terms of the contract, Lockheed Martin will cover 100 percent of cost overruns.
A handshake agreement, without some cost details, was announced in October.
The average airframe cost dropped roughly 3.5 percent from LRIP-7, and are down 57 percent since LRIP-1.
Those costs do not include engine prices. The Pentagon signed an LRIP 8 agreement with engine manufacturer Pratt & Whitney in October.
Overall, US forces will receive 19 F-35As for the Air Force, six F-35Bs for the Marine Corps and four F-35C models, three for the US Navy and one for the Marines. In addition, the contract covers the first two F-35As for Israel, the first four F-35As for Japan, two additional F-35As for Norway and two F-35As for Italy.
F-35 program head, told reporters Oct. 31 that he plans to negotiate LRIP 9 and 10 together as a package in January.

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