Home / Contract Awards / Reports: DoD Seals $8.5B Deal With Lockheed for 90 F-35s

Reports: DoD Seals $8.5B Deal With Lockheed for 90 F-35s

The Defense Department and Lockheed Martin (NYSE: LMT) have finalized an $8.5 billion contract for the manufacturer to supply 90 lot 10 F-35s, an order that is $728 million less than the cost of the previous batch of the fighter jets, Reuters reported Friday.

Mike Stone writes the latest F-35 deal lowers the price of the aircraft from $102 million per unit to about $95 million.

The tenth lot covers the production of 55 jets for U.S. military branches and 35 jets for the program’s international partners and foreign military sales customers.

Lockheed said that production efficiency measures, economies of scale and President Donald Trump’s personal efforts helped drive down costs, Anthony Capaccio and Julie Johnsson wrote in a report for Bloomberg.

The lot 10 contract was negotiated for more than a year and was finalized after Lockheed CEO Marillyn Hewson  assured Trump in late 2016 that the company would reduce the F-35 price.

Lockheed and its partners BAE Systems, Northrop Grumman (NYSE: NOC) and United Technologies Corp.‘s (NYSE: UTX) Pratt & Whitney subsidiary collaborate to establish measures to increase the F-35 production line capacity.

Check Also

E-TAS Lands $97M Contract for Technical Support to DOE Portsmouth/Paducah Project Office

Enterprise Technical Assistance Services will provide technical support services to a Department of Energy project office that oversees environmental legacy cleanup efforts at Portsmouth and Paducah uranium enrichment sites under a potential $97.1M contract, according to a FedBizOpps notice posted Thursday.

HPE, NASA Develop ‘Aitken’ Supercomputer to Support Manned Lunar Missions

Hewlett Packard Enterprise (NYSE: HPE) has developed a supercomputer named after astronomer Robert Grant Aitken designed to help NASA’s Ames Research Center run modeling and simulations to support the space agency’s lunar missions.