Lockheed Martin (NYSE: LMT) has submitted to the Department of Defense a five-year arrangement to maintain F-35 jets and save DoD as much as $1B, Defense One reported Monday.
The report said F-35 sustainment contracts are negotiated between the two parties on an annual basis and if the Pentagon approves the 25-page contract proposal, the company will allocate $1.5B for long-lead parts as well as further develop the aircraft’s software for logistics and maintenance.
œIt™s a commitment on the company™s part to a five-year deal and it would bring along the partners as well as the supply chain and allow us all to establish long-term arrangements with our vendor base, Ken Merchant, vice president for F-35 sustainment at Lockheed, said at an Air Force Association event in Maryland.
National Defense Magazine reported Tuesday the company aims to cut F-35™s cost per flying hour to less than $25K by 2025.
Lockheed also seeks to provide stability for suppliers and support the company™s goal of sustaining an 80 percent mission-capable rate for the U.S. Air Force™s F-35As through the proposed contract.
