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The US Department of War and Lockheed Martin have announced a new transformative framework agreement for multiyear F-35 Lightning II production and sustainment.
The framework includes 850 US aircraft over 10 years with associated initial spares, 10 years of modification kits and sustainment, and international customer orders across Lots 21-30, at a continued production rate of 156 aircraft per year.
If granted multiyear authority and associated appropriations in the coming months, the F-35 Joint Program Office and Lockheed Martin will work to finalize contract terms, pricing, and schedules through a formal contract award, which will fulfill the government's imperative for a predictable, affordable, and resilient fighter jet enterprise.
“This multiyear framework strengthens the way we can plan and invest in the F-35 enterprise,” according to Lockheed Martin Chairman, President and CEO Jim Taiclet.
“With the greater certainty that comes from the US government's transformative approach to F-35 production and sustainment, we can make the upfront investments needed to expand capacity, improve efficiency, and build a more resilient supply chain.
“That's good for the taxpayer, good for our suppliers and, most importantly, good for the United States and its allies.”
The framework agreement directly addresses Department of War and Congressional priorities to improve F-35 readiness by providing predictable, multiyear procurement planning that eliminates the need for supplemental appropriations for, obsolescence management and production tooling.
As well as delivering high-volume procurement efficiencies and discounts that translate into tangible taxpayer savings, ensuring transparent, data driven decision-making through integrated analytics that link budget inputs to readiness outcomes; and providing real-time visibility into parts inventory and readiness metrics through integrated analytics.
The framework agreement is expected to provide predictable demand from long-term contracts with suppliers will enable bulk procurement of raw materials and critical parts, an integrated procurement model that pairs aircraft production with purchases of spare and modification parts will deliver high-volume procurement discounts; and program to support 317,000 US jobs and generate approximately US$79 billion in annual economic activity over the next decade.
In addition, the multiyear procurement model is expected to enable economies of scale that lower costs and enhance readiness for all F‑35 customers in the global sustainment network and enhance interoperability across allied fleets.
“Our new multiyear framework gives suppliers stability to plan for the future and invest with confidence, improving readiness across the F-35 fleet,” said OJ Sanchez, president of Lockheed Martin Aeronautics.
“This, in addition to the investments Lockheed Martin is making to the global spares pool, will directly translate into higher mission capable rates and a more resilient supply chain – critical capabilities the warfighter needs to meet today's mission and prepare for tomorrow's threats.”
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