The US Department of War and Lockheed Martin have unveiled a proposed 10-year framework covering the production and sustainment of 850 US F-35 Lightning II aircraft.
The arrangement would cover aircraft from Lots 21 to 30, associated initial spares, modification kits and sustainment services.
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Production would remain at 156 aircraft per year and include orders from international customers.
However, the framework is not yet a formal production contract. The F-35 Joint Program Office and Lockheed Martin will need multiyear authority and related appropriations before finalising contract terms, pricing and schedules.
Lockheed Martin chairman, president and CEO Jim Taiclet said: “This multiyear framework strengthens the way we can plan and invest in the F-35 enterprise.
“With the greater certainty that comes from the US government’s transformative approach to F-35 production and sustainment, we can make the upfront investments needed to expand capacity, improve efficiency, and build a more resilient supply chain. That’s good for the taxpayer, good for our suppliers and, most importantly, good for the United States and its allies.”
Lockheed Martin described the proposed arrangement as a means to provide greater certainty for long-term planning, facilitate investment in production capacity, and strengthen supply-chain resilience.
The approach is also intended to cut costs by leveraging volume purchasing and longer-term pricing structures.
The plan would merge aircraft procurement with the purchase of spare parts and modification kits, allowing suppliers to acquire raw materials and key components in bulk and reducing the challenges posed by yearly contracting cycles.
According to the announcement, the framework would incorporate integrated analytics to connect budget decisions directly with readiness outcomes and deliver enhanced visibility into parts inventories and operational metrics.
Lockheed Martin said the programme has the potential to sustain around 317,000 jobs across the US and generate about $79bn in annual economic activity over the coming decade.
The savings, anticipated to reach billions of dollars over the lifecycle of the F-35, will depend on receiving the necessary authority, funding, and final contract approval.
In addition, International F-35 customers would participate in the procurement model. Aggregating demand in this way is expected to help lower overall costs and boost readiness for all participating fleets, while maintaining interoperability within the global sustainment network.
The framework is designed to address DoW and congressional priorities related to affordability, industrial base capacity, and the readiness of the F-35 fleet.
Currently, more than 1,375 F-35 aircraft are deployed across 42 bases worldwide, with the fleet having accumulated over one million flight hours, Lockheed Martin said.
