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Navy Issues $138M Modification on Lockheed’s Lot 9 F-35 Production Contract

Lockheed Martin‘s (NYSE: LMT) aeronautics business unit has received a $137.8 million contract modification from the U.S. Navy to fund cost reduction efforts for the low-rate initial production of lot 9 F-35s.

The Defense Department said Friday that the full obligated amount at the time of award is from fiscal 2016 aircraft procurement funds of the Navy, Marine Corps and U.S. Air Force.

Work will occur in Baltimore, Maryland, El Segundo, California, Fort Worth Texas, Nashua, New Hampshire, Orlando, Florida, Japan and the U.K. through December 2020.

The Navy awarded Lockheed secured a $431.3 million modification in August 2015 to obtain special aircraft tooling and test equipment under the lot 9 LRIP deal.

Last year, DoD approved a nearly $1 billion reimbursement for out-of-pocket costs the company incurred on the ninth batch of F-35 aircraft.

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