LRIP for 2020
Lockheed Martin targets USD80 million unit price for F-35A in LRIP 14
Lockheed Martin is targeting a unit price of USD80 million for its F-35 Lightning II Joint Strike Fighter (JSF) A-model conventional variant in its low rate initial production (LRIP) 14 negotiations, including the engine, according to a key executive.
Jeff Babione, Lockheed Martin executive vice-president and general manager of F-35, told Jane’s on 16 November that the company and its Pentagon counterparts in 2014 targeted a USD85 million F-35A unit price for 2019. This would be USD89.6 million in 2017 dollars.
Lockheed Martin announced in February that its F-35A unit price for LRIP 10 was USD94.6 million for the F-35A; USD122.8 million for the F-35B short take-off and vertical landing (STOVL) variant; and USD121.8 million for the F-35C aircraft carrier variant. These unit prices include jet, engine, and fee. Unit prices are generally understood to be declining as the Pentagon and Lockheed Martin ramp up F-35 production.
Babione said Lockheed Martin and the Pentagon are currently negotiating LRIP 11. The US Navy on 28 July issued Lockheed Martin a USD3.7 billion undefinitised contract action (UCA) to continue building LRIP 11 aircraft prior to a final agreement on price. LRIP 11 will ultimately procure 141 F-35s – 91 aircraft for the United States, 28 aircraft for international partners, and 22 aircraft for Foreign Military Sale (FMS) customers, according to a late July Pentagon statement. The statement did not break down the UCA by variant