[Discussion] Lockheed Secures $11.8B Pentagon Deal for F-35 Jet Production

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Lockheed Obtains $11.8 Billion F-35 Production Contract Bid from Pentagon

The Pentagon has extended an approximately $11.8 billion contract to Lockheed Martin, securing the continued production of the globally-coveted F-35 Joint Strike Fighter. The perceived progress in contract negotiations has been viewed favorably as both parties edge closer to a comprehensive agreement for the stealth fighter.

This hard-won contract encompasses 145 instances of the tri-variant fighter, set to serve the US Air Force, Marine Corps, Navy, and various international clientele. It's noteworthy that the contract is in the undefinitized stage; where particulars regarding dollar amount and quantities could undergo adjustments as discussions persist. The contract exclusively caters to production lot 18 of the stealth fighter.

Quest for Contract Finalization: Spring 2025

Lockheed deferred all queries to the Pentagon. Russ Goemaere, an F-35 Joint Program Office spokesperson, relayed to Breaking Defense that the objective is to finalize this lot 18 contract during the spring.

Goemaere went on to announce that similar expectations are in place for the issuance of an undefinitized contract for lot 19 production, contingent upon the approval of the 2025 fiscal budget. However, this may not transpire until as late as March, given the last-minute, stopgap provision approved by legislators recently.

Overcoming Negotiation Impediments and Coronavirus Challenges

Despite the original plan to secure an agreement last year for production lots 18 and 19, the Pentagon and Lockheed, have warsawed in reaching a consensus due to inflation and further complications. Although a "handshake" deal for these two lots was agreed upon in November, the specifics of quantities or prices remained unshared. Nonetheless, Lockheed indicated positive progress could be made with the issuance of an undefinitized contract as talks continued.

Lockheed previously attested that securing a contract was essential to provide a cash influx that the company had been partly funding out-of-pocket to ensure continued production.

F-35 Stealth Fighter: Quarrels and Defenders

Notably, the F-35 program has been variously scrutinized by Trump's supporter Elon Musk, who is expected to cochair a "Department of Government Efficiency" (DOGE). The commission could theoretically recommend expenditure reductions. Musk's sharp criticism of decision-makers for continuing to produce the jet and DOGE co-chair Vivek Ramaswamy's advocacy for redirecting funds from manned fighters to alternate platforms such as drones bring up valid questions concerning the Joint Strike Fighter's future under the new administration.

Nevertheless, the fighter continues to have its own advocate in the outgoing Air Force Secretary Frank Kendall, who despite his well-known skepticism of the F-35 program, defended its continued production and upgrading in the face of Musk's critiques last Thursday.

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