The U.S. Navy has awarded Lockheed Martin (NYSE: LMT) a $743.2 million modification under a previously awarded advance acquisition contract for the ninth batch of F-35 fighters.
The Defense Department said Monday the modification allocates additional funds to address diminishing manufacturing and material shortages for redesign and development, estimated post-production concurrency changes and country unique requirements.
DoD added the award is meant to establish not-to-exceed prices for one F-35A conventional takeoff-and-
The initial obligated amount of $506.1 million will be financed with fiscal 2015 aircraft procurement funds from the Navy, Marine Corps and Air Force as well as non-DoD participant and foreign military sales funds.
Lockheed is scheduled to complete work under the modification by December 2019.
In August, the Pentagon decided to reimburse Lockheed for approximately $1 billion in out-of-pocket costs incurred on low-rate initial production lot 9 F-35s.
Th company will deliver a total of 55 F-35s to three U.S. military service branches and the governments of Norway, Israel and Japan under a $5.4 billion modification the Navy awarded in November 2015.