Lockheed and U.S. War Department Agree on Production of 850 F-35 Fighters

Lockheed Martin and the U.S. War Department announced, in a statement issued on October 22, a framework agreement to manufacture 850 F-35 fighter aircraft for U.S. purposes over ten years, within Lots 21 to 30, at a sustained production rate of 156 aircraft per year.

The framework includes initial spare parts, modification kits, and ten years of maintenance, in addition to international customer orders. The company explained that its implementation requires multi-year authorization and financial appropriations from Congress before the F-35 Joint Program Office and Lockheed begin establishing final terms, pricing, and schedules via a formal contract.

The company expects the framework to save taxpayers billions of dollars over the aircraft's lifecycle thanks to long-term pricing and volume discounts. It includes a $7 billion investment in the defense industrial base, support for nearly 317,000 American jobs, and about $79 billion in annual economic activity over the next decade, according to the statement.

The number of F-35 aircraft deployed globally exceeds 1,375, and its fleet has surpassed one million flight hours, operating from 42 bases, including 13 countries operating them on their soil. Lockheed Chief Executive Jim Taiclet said the certainty provided by the framework allows for advance investment in capacity, efficiency, and the supply chain.

What do these terms mean?

Framework agreement: A preliminary agreement defining the deal's goals and broad terms before signing the official contract.

Financial appropriations: Funds approved by Congress to finance a government program or defense contract.

Supply chain: The network of suppliers and factories that provide the parts and materials needed to manufacture the final product.