Lockheed Wins $1.38Bn for Advance Acquisition of 240 More F-35s

Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a not-to-exceed $1,377,002,000 advance acquisition contract for long-lead time materials, parts, components, and effort for 130 low-rate initial production Lot 12 F-35 Lightning II aircraft for the Air Force, Navy, Marine Corps, non-U.S. Department of Defense (DoD) participants, and foreign military sales customers.

In addition, this contract provides long-lead time materials, parts, components, and effort for 110 Lot 13 and 14 F-35 Lightning II aircraft for the non-U.S. DoD participants and foreign military sales customers.

Work will be performed in Fort Worth, Texas (30 percent); El Segundo, California (25 percent); Warton, United Kingdom (20 percent); Orlando, Florida (10 percent); Nashua, New Hampshire (5 percent); Nagoya, Japan (5 percent); and Baltimore, Maryland (5 percent), and is expected to be completed in December 2018.

Fiscal 2017 aircraft procurement (Air Force, Navy, Marine Corps); non-U.S. DoD participant; and foreign military sales funds in the amount of $1,377,002,000 are being obligated at time of award, none of which will expire at the end of the current fiscal year.

This order combines purchases for the Air Force ($315,500,000; 23 percent); Marine Corps ($128,925,000; 9 percent); Navy ($43,509,000; 3 percent); non-U.S. DoD participant ($524,446,000; 38 percent), and foreign military sales customers ($364,622,000; 27 percent).

This contract was not competitively procured pursuant to Federal Acquisition Regulation 6.302-1.

The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-17-C-0001).

(EDITOR’S NOTE: This is the first time that Navair awards a single contract covering three different Low-Rate Initial Production (LRIP) lots.
Such an award makes it virtually impossible to extrapolate the aircraft’s unit costs, which both the F-35 Joint Program Office and Lockheed Martin claim are falling with each successive production lot -- but with no substantiation.
If this contract was broken down by lot, it would show that unit costs are, in fact, rising because of the increasing cost of post-delivery fixes and upgrades needed to attain contractual specifications.)

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Lockheed Wins $1.38Bn for Advance Acquisition of 240 More F-35s Lockheed Wins $1.38Bn for Advance Acquisition of 240 More F-35s Reviewed by Defense Alert on 02:50:00 Rating: 5

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