{"id":26900,"date":"2018-09-28T13:58:36","date_gmt":"2018-09-28T13:58:36","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2018\/09\/28\/f-35-price-falls-before-90m-for-first-time-ever-in-new-deal\/"},"modified":"2026-08-07T22:22:33","modified_gmt":"2026-08-07T22:22:33","slug":"f-35-price-falls-before-90m-for-first-time-ever-in-new-deal","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/air\/2018\/09\/28\/f-35-price-falls-before-90m-for-first-time-ever-in-new-deal\/","title":{"rendered":"F-35 price falls below $90M for first time in new deal"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON \u2014 The price of a conventional F-35A model <a href=\"https:\/\/www.defensenews.com\/air\/2017\/02\/03\/pentagon-lockheed-reach-agreement-on-f-35-contract-for-90-jets\/\" target=_blank>has fallen below $90 million for the first time<\/a> through a deal announced Sept. 28 between the Pentagon and Lockheed Martin.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Defense Department\u2019s F-35 Joint Program Office and F-35 prime contractor Lockheed have finalized an $11.5 billion contract for the <a href=\"https:\/\/www.defensenews.com\/air\/2018\/02\/28\/f-35-program-head-blasts-lockheed-for-slow-progress-on-lot-11-contract\/\" target=_blank>11th batch of F-35s<\/a>. The deal <a href=\"https:\/\/www.defensenews.com\/smr\/defense-news-conference\/2017\/09\/07\/new-f-35-program-head-wants-lot-11-deal-by-october\/\" target=_blank>comprises 141 new jets<\/a> and follows a handshake deal between the two parties that was announced in July.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The agreement pushes the cost of the F-35A conventional model \u2014 used by the U.S. Air Force and most foreign buyers \u2014 to $89.2 million per aircraft, a 5.4 percent reduction from the $94.3 million in the 10th batch of aircraft.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/defensenews\/breaking-news\/2018\/07\/15\/pentagon-reaches-handshake-deal-with-lockheed-on-newest-batch-of-f-35s\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"169\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/4435030.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Pentagon reaches handshake deal with Lockheed on newest batch of F-35s<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">The Pentagon makes its biggest F-35 order yet.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">The more expensive &#8220;B&#8221; and &#8220;C&#8221; models incurred even bigger price cuts. The Marine Corps\u2019 F-35B short-takeoff-and-vertical-landing variant\u2019s cost decreased 5.7 percent from $122.4 million to $115.5 million, while the F-35C carrier variant dropped a whopping 11.1 percent from $121.2 million to $107.7 million per unit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The finalized agreement comes on the heels of another first for the platform. On Thursday, Marine Corps F-35Bs <a href=\"https:\/\/www.militarytimes.com\/news\/your-military\/2018\/09\/27\/f-35-flies-first-combat-mission-in-afghanistan\/\" target=_blank>were flown in combat for the first time by the U.S. military<\/a>, conducting successful airstrikes on an unnamed fixed target.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Although the Marine Corps and Air Force have already begun using their Joint Strike Fighters operationally, F-35 program leaders from government and industry remain focused on bringing down production costs to $80 million per unit by 2020 \u2014 a step seen as critical for the services to begin buying greater numbers of aircraft.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cDriving down cost is critical to the success of this program,\u201d said Vice Adm. Mat Winter, the F-35 program executive officer. \u201cWe are delivering on our commitment to get the best price for taxpayers and war fighters.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis agreement marks a significant step forward for the F-35 program as we continue to increase production, reduce costs and deliver transformational capabilities to our men and women in uniform,\u201d said Greg Ulmer, Lockheed\u2019s F-35 vice president and general manager. \u201cAs production ramps up and we implement additional cost savings initiatives, we are on track to reduce the cost of the F-35A to $80 million by 2020, which is equal to or less than legacy aircraft, while providing a major leap in capability.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Deliveries of low-rate initial production lot 11 are set to begin in 2019. LRIP 11 is the largest production batch so far, covering 91 jets for the U.S. military, 28 for F-35 international partners that paid into the development of the aircraft and 22 jets for Foreign Military Sales customers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The government contracts separately for the F-35\u2019s engines, the F135 built by Pratt &amp; Whitney, but the pricing information issued Friday includes both the airframe and the engine. The parties reached a $2 billion agreement for the LRIP 11 engines in May.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With the lot 10 contract under their belts, the Pentagon and Lockheed are set to begin negotiations on lots 12, 13 and 14, which will be grouped together as a block buy that will initially serve international customers but could also accommodate the U.S. services as early as lot 13.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Prices for all three models of the F-35 went down in the deal for the 11th lot.<\/p>\n","protected":false},"author":7,"featured_media":59039,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":7,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":{"4":{"categories":["your-air-force","news","daily-news-roundup","newsletters","left-column","home"],"primary_category":"your-air-force"}}},"categories":[7,160,12,36],"tags":[],"coauthors":[3384],"class_list":["post-26900","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-air","category-daily-news-roundup","category-industry","category-newsletters"],"acf":{"subheadline":"","legacy_arc_id":"JND7LJEJJNDNFJ5YGWEWBKWCQM","arc_canonical_url":"\/air\/2018\/09\/28\/f-35-price-falls-before-90m-for-first-time-ever-in-new-deal\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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