Lockheed Martin announced it had signed a framework agreement for F-35 Lightning II production and sustainment.
The multi-year framework includes more than 850 U.S. aircraft over 20 years with associated spares, as well as 10 years of modification kits and sustainment, and a continued production rate of 156 aircraft per year. The company said the agreement will strengthen the supply chain, save billions in taxpayer money and improve fleet readiness.
“This multiyear framework strengthens the way we can plan and invest in the F-35 enterprise,” Lockheed Martin’s chairman, president and CEO Jim Taiclet, said. “With the greater certainty that comes from the U.S. 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.”
If the multiyear authority and appropriations is granted, the F-35 Joint Program Office and Lockheed Martin will work to finalize a contract that includes terms, pricing and schedules. The final contract award will “fulfill the government’s imperative for a predictable, affordable and resilient fighter jet enterprise,” officials said. The move is expected to save billions over the fighter jet’s lifecycle through long-term pricing and volume discounts.
The framework agreement eliminated the need for supplemental appropriations for obsolescence management and production tooling, the company said, while delivering high-volume procurement efficiencies and discounts and ensuring transparent, data-driven decision-making.
Officials said the program will support 317,000 jobs in the U.S. and generate approximately $79 billion in annual economic activity over the next decade.
“Our new multiyear framework gives suppliers stability to plan for the future and invest with confidence, improving readiness across the F-35 fleet,” OJ Sanchez, president of Lockheed Martin Aeronautics, said. “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.”