The U.S. Department of War and Lockheed Martin agreed to a 10-year framework for at least 850 F-35s for U.S. forces, tying a long production horizon to congressional approval and funding.
The scope includes aircraft for U.S. forces, orders for international customers and support for F-35 fleets worldwide. Lockheed said annual production would remain at 156 aircraft across Lots 21 through 30. The package also includes initial spare parts, modification kits and 10 years of sustainment for the global fleet.
The Department of War said Lockheed would commit at least $7 billion of company funds to F-35 program initiatives. Lockheed has said annual contracting cycles have strained the industrial base. It argues that a longer demand horizon would give suppliers a steadier basis for investment and allow larger purchases. The company expects the approach to support readiness for U.S. and allied customers and save taxpayers money.
Lockheed Martin Chairman, President and CEO Jim Taiclet said the longer horizon would support investment in production capacity and supply-chain resilience. Anadolu Agency described the framework as the administration’s longest recent commitment to prepare suppliers for wartime production. The agency also reported that finalization would require tens of billions of dollars in congressional funding.
The framework comes as Lockheed faces a separate funding issue on F-35 Lot 20. In its third-quarter filing, the company said costs on the advance-acquisition contract had exceeded existing authorization and funding. It said additional government authorization and funding were needed to avoid effects on earnings, cash generation and its financial position. The disclosure was part of Lockheed's third-quarter F-35 funding update.
Congress must approve multiyear procurement authority and provide appropriations before the framework can move toward a formal contract award. After those steps, the F-35 Joint Program Office and Lockheed would negotiate the final terms, pricing and schedule.
