Lockheed MartinÂ (NYSE: LMT) will receive approximately $1 billion in additional funds from the Defense Department after DoD decided to reimburse the company for production costs incurred on lot 9 of the F-35 Lightning II aircraft, Defense News reported Thursday.
Valerie Insinna writes the F-35 joint program office will obligate funds for low-rate initial production lot 9 fighter jets under an existingÂ undefinitized contract action.
DoDâs decisionÂ comes a month after Bruce Tanner, chief financial officer at Lockheed, said the companyâs efforts to compensate suppliers resulted in approximately $1 billion in out-of-pocket expenses, Insinna reports.
Joe DellaVedova, an F-35 JPO spokesman, told the publication that JPO is now in talks with Lockheed to provide funds forÂ LRIP lot 10 fighter planes through a separate UCA.
The report said DoD uses UCAs to facilitate work on programs before the final contract terms are finalized.
Lockheed announced in November that it had received $625 million in funds through a UCA for LRIP lot 9 F-35s, the report added.