DOD, Lockheed agree on price for next 145 F-35s

On By Littum

The F-35 Joint Program Office has agreed in principle to pay up to $11.8 billion for the next 145 F-35s from manufacturer Lockheed Martin — but the final details of the deal won’t be finalized until spring.

The act specifies that the cost will not exceed $11.76 billion for Lot 18 jets, setting the average price for the three F-35 variants at $81.1 million. Work on the jets must be completed in June 2027.

The Ministry of Defense announced the “undefined” deal on December 20 and said the final details would be worked out in the coming months. The Defense Acquisition University defines an undefined contract action as one that has “some aspect that is left open to be determined before the start of contract performance.” Lockheed and the Pentagon previously agreed to an undefined contract action for F-35s in 2018and then said it allowed the company to receive funds to hold up production while final details were negotiated.

Among the 145 jets included are:

  • 48 F-35As for the Air Force
  • 16 F-35B and 5 F-35C models for the Marine Corps
  • 14 F-35C models for the fleet
  • 15 F-35A and 1 F-35B models for F-35 program partners
  • 39 F-35A and 7 F-35B models for foreign military sales customers

The exact costs per type and service were not disclosed.

It is important for Lockheed to get the undefined action; officials said in October that the company fronted its own money to keep F-35 production up while negotiations dragged on.

It could also be important given the upcoming change in presidential administrations. While President-elect Donald Trump has been highly complimentary of the F-35 and some Republican leaders want to increase defense spending, other administration insiders have been critical of the jet — most prominently Elon Musk, co-chairman of the “Department of Government Efficiency.” Musk’s commission will advise Trump on cost-cutting measures, and Musk has criticized both the F-35 program and the goal of building manned aircraft rather than unmanned drones. Musk’s comments have drawn sharp rebukes from both sides of the political aisle.