Lockheed Wins $1.4 Bn for F-35 Logistics

Pentagon Contract Announcement

(Source: U.S. Department of Defense; issued April 30, 2018)

Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is awarded a $1,421,735,530 cost-plus-incentive-fee contract for recurring logistics services for delivered F-35 Lightning II Joint Strike Fighter air systems in support of the Air Force, Marine Corps, Navy, non-Department of Defense (DoD) participants, and foreign military sales (FMS) customers.

Services to be provided include
-- ground maintenance activities;
-- action request resolution;
-- depot activation activities;
-- Automatic Logistics Information System operations and maintenance;
-- reliability, maintainability and health management implementation and support;
-- supply chain management; and
-- activities to provide and support pilot and maintainer initial training.

Work will be performed in Fort Worth, Texas (62 percent); Orlando, Florida (22 percent); Greenville, South Carolina (7 percent); Warton, United Kingdom (5 percent); and Redondo Beach, California (4 percent), and is expected to be completed in April 2019.

Fiscal 2018 operations and maintenance (Air Force, Marine Corps, and Navy); fiscal 2018 aircraft procurement (Air Force, Marine Corps, and Navy); non-DoD participant; and FMS funds in the amount of $1,403,206,015 will be obligated at time of award; $845,359,517 of which will expire at the end of the current fiscal year.

This contract combines purchases for the Air Force ($598,147,885; 42.07 percent); Marine Corps ($261,767,508; 18.41 percent); Navy ($174,668,435; 12.29 percent); non-DoD participants ($284,481,973; 20.01 percent); and FMS customers ($102,669,729, 7.22 percent).

This contract was not competitively procured pursuant to 10 U.S. Code 2304(c)(1).

The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

(See our analysis of this contract in our Features section--Ed.)

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Pentagon and Lockheed Martin Finalize 2018 F-35 Sustainment Contract to Enhance Readiness and Reduce Costs

(Source: Lockheed Martin Aeronautics Company; issued April 30, 2018)

FORT WORTH, Texas --- The F-35 Joint Program Office has awarded the Lockheed Martin industry team a $1.4 billion sustainment contract to support operations for the F-35 fleet around the globe.

The annual contract funds sustainment support activities for aircraft currently in the fleet, as well as building enterprise capacity to support the future fleet of more than 3,000 F-35 aircraft. Activities include air system maintenance; pilot and maintainer training; depot activation; sustaining engineering; Automatic Logistics Information System (ALIS) support, data analytics and predictive health management; supply chain logistics and more.

"This contract is critical to ensuring the transformational F-35s are mission ready to support our men and women in uniform," said Bridget Lauderdale, Lockheed Martin vice president of F-35 Global Sustainment. "We are taking aggressive actions to improve F-35 aircraft availability and reduce sustainment costs. As the sustainment system matures and the size of the operational fleet grows, we are confident we will deliver more capability at less cost than legacy aircraft."

Cost Reduction

Lockheed Martin is implementing comprehensive actions to improve readiness and reduce industry costs, to include:

-- Expanding the networked global supply chain to improve component repair capacity, throughput and velocity.
-- Investing in enhanced diagnostics and data analytics to improve flight line readiness and drive down costs.
-- Pre-funding spares buys and synchronizing production and sustainment component orders to achieve volume cost reductions and improve parts availability.

More than 280 F-35 aircraft have been delivered and are now operating from 15 bases around the globe. More than 580 pilots and 5,600 maintainers have been trained and the F-35 fleet has surpassed more than 130,000 cumulative flight hours. The F-35 weapons system reliability continues to improve, and newer aircraft are averaging greater than 60 percent availability with some operational squadrons consistently at or above 70 percent availability.

The 2018 Annualized sustainment contract will cover sustainment services through April 30, 2019.

With stealth technology, advanced sensors, weapons capacity and range, the F-35 is the most lethal, survivable and connected fighter aircraft ever built. More than a fighter jet, the F-35's ability to collect, analyze and share data is a powerful force multiplier that enhances all airborne, surface and ground-based assets in the battlespace and enables men and women in uniform to execute their mission and return home safe.

Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 100,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

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Lockheed Wins $1.4 Bn for F-35 Logistics Lockheed Wins $1.4 Bn for F-35 Logistics Reviewed by Defense Alert on 05:33:00 Rating: 5

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