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  • Thursday, April 25, 2024

Report: Pentagon, Lockheed Close $4.7B Deal for Lot 8 F-35 Jets


F-35Lockheed Martin (NYSE: LMT) and the U.S. Defense Department have closed on a $4.7 billion contract for the eighth lot of low-rate initial production F-35 fighters, DoD Buzz reported Friday.

Kris Osborn writes Lockheed will build 29 F-35s for the U.S. Air Force, Navy and Marine Corps and another 14 for U.S. partner nations Israel, Japan, Italy, Norway and the U.K.

DoD has signed a separate contract for Pratt & Whitney jet engines.

Lockheed is scheduled to begin aircraft deliveries in early spring 2016 under the LRIP 8 agreement, which indicates a 3.5 percent cost-per-unit decrease from the previous batch and a 57 percent reduction since the first batch.

The F-35 Joint Program Office said the company would also receive incremental payments based on performance, according to DoD Buzz.

Osborn reports DoD and Lockheed also agreed to share additional costs that may arise during aircraft development, testing and certification.

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