Lockheed Gets $450M Contract Modification to Continue F-35A Air System Integration for South Korea

Lockheed Martin (NYSE: LMT) has been awarded a $450 million contract modification by the U.S. Navy to continue integration work on the F-35A air system for South Korea as part of a foreign military sales deal.

The Defense Department said Thursday the modification also covers non-recurring engineering services and falls under a previously awarded advance acquisition contract for the 10th batch of low-rate initial production F35s.

The Navy obligated FMS funds for the modification and Lockheed’s aeronautics business is scheduled to finish work in August 2019.

Lockheed received a $1.28 billion upfront fee from DoD in late November to fund low-rate initial production lot 10 F-35s.

DoD made the down payment as part of a potential $7.19 billion œundefinitized contract action and less than a month after the department issued a $1.6 billion œunilateral contract for the company to manufacture a total of 57 lot 9 fighter jets for U.S. and foreign military customers.

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