Home / Contract Awards / Report: Pentagon Using New Pricing Data In Lockheed F-35 Talks

Report: Pentagon Using New Pricing Data In Lockheed F-35 Talks

Lockheed’s F-35 / DoD Image

Lockheed Martin Corp. (NYSE: LMT) and the Defense Department are getting closer to a new agreement for 32 F-35 Joint Strike Fighter aircraft, the Pentagon’s top weapons buyer said, Defense News reports.

Frank Kendall, undersecretary for acquisition, technology and logistics, said the Pentagon is using new pricing data to estimate acquisition costs, according to Marcus Weisgerber’s report.

The Pentagon has developed a price scale model, also known as a should-cost estimate, based on the military’s previous four purchases of F-35 jets.

Kendall told reporters the Pentagon is using the should-cost scale to compare costs with Lockheed’s new F-35 bid item-by-item and line-by-line, Weisgerber reports.

That new data is contributing to a delay in negotiations between the company and the government, according to the report.

Navy Vice Adm. David Vinlet, F-35 program manager, told a Senate Armed Services panel in May that future tests will focus on software development and assembly.

Those tests will occur before Lockheed receives a planned contract for six jets.

Check Also

Navy Awards BAE $185M in Destroyer Ship Modernization Contracts

BAE Systems' ship repair business in San Diego has won a pair of contracts worth $185M combined from the U.S. Navy to modernize Arleigh Burke-class USS Decatur and USS Stethem destroyer ships.

ST Engineering’s iDirectGov Buys Glowlink in Satcom Tech Expansion Push

ST Engineering has acquired Glowlink Communications Technology through its iDirect Government subsidiary for approximately $25M.