The U.S. Department of Defense and Lockheed Martin signed two F-35 contracts today, valued at $7.8 billion, for a total of 71 F-35 Lightning II aircraft to be produced in the sixth and seventh Low-Rate Initial Production (LRIP) lots. These agreements are a significant milestone for the F-35 Program, and reflect cost reduction initiatives shared by government and industry.
The LRIP 6 contract, valued at $4.4 billion ($3.7 billion awarded through a December 2012 undefinitized contract action; ref: N00019-11-C-0083, and $0.7 billion awarded through today’s contract) funds production of 36 aircraft, with average aircraft unit cost approximately 2.5 percent lower than LRIP 5 aircraft. LRIP 6 per variant unit prices (not including engine cost) follow:
· 23 F-35As CTOL – $103 million/jet
· 6 F-35B STOVL – $109 million/jet
· 7 F-35C CV – $120 million/jet
The LRIP 7 contract, valued at $3.4 billion, funds the production of 35 aircraft, with average aircraft unit cost approximately 6 percent lower than LRIP 5 aircraft. F-35 LRIP 7 per variant unit prices (not including engine cost) follow:
· 24 F-35As CTOL – $98 million/jet
· 7 F-35B STOVL – $104 million/jet
· 4 F-35C CV – $116 million/jet
The 71 aircraft are currently in various stages of production. Lockheed Martin will begin delivering LRIP 6 aircraft in the second quarter of 2014 and LRIP 7 jets in the second quarter of 2015. LRIP 6 will mark the first delivery of international F-35 jets for Italy and Australia, and LRIP 7 will mark the first delivery to Norway.
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