{"id":40325,"date":"2017-10-24T17:55:10","date_gmt":"2017-10-24T17:55:10","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2017\/10\/24\/pentagon-kicks-off-intensive-f-35-cost-review\/"},"modified":"2026-08-07T23:05:45","modified_gmt":"2026-08-07T23:05:45","slug":"pentagon-kicks-off-intensive-f-35-cost-review","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/air\/2017\/10\/24\/pentagon-kicks-off-intensive-f-35-cost-review\/","title":{"rendered":"Pentagon kicks off intensive F-35 cost review"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON \u2014 The U.S. Defense Department\u2019s deep dive into the F-35\u2019s cost is officially underway, as a team of Pentagon officials works their way through the massive supply chain of the joint strike fighter, a top official said Monday.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Pentagon knows how much it\u2019s paying for the F-35, but the deep dive will help officials understand the true cost of the jet and why, as well as what can be done to whittle down the price tag even further, said Shay Assad, the department\u2019s director of defense pricing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Over the next several weeks, the assessment team will meet with the three major contractors on the F-35 \u2014 prime contractor Lockheed Martin, as well as BAE Systems and Northrop Grumman, which make major portions of the fuselage \u2014 and lay out the parameters of the review.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cLockheed is familiar with this process because we\u2019ve done it before with them, so this isn\u2019t something new,\u201d Assad said. \u201cMany of the things we\u2019re talking about are just practices that have occurred in the past, this will just be much more rigorous. So we\u2019ll lay it out with the companies. And we\u2019ll also lay out for them: Here\u2019s our plan in terms of your subcontractor base, and this is what we want to do, and then get off and get the work done.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The review will take about a year to complete.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIt\u2019s a very intense effort,\u201d he said.<\/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\/digital-show-dailies\/air-force-association\/2017\/09\/20\/pentagons-f-35-deep-dive-to-drive-lower-costs-on-block-buy-deal\/\" 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=\"196\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/635575241787644206-northrop-f35-productionjpg.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\u2019s F-35 deep dive to drive lower costs on block buy deal<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">The Pentagon\u2019s director of defense pricing is helping the joint program office nail down a better deal on a block buy.<\/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\">While Assad has a cost-savings target in mind, he declined to share that number, saying he wants to ensure it\u2019s feasible before publicly releasing how much he will expect the price of F-35 production and sustainment to decrease.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWhat are the opportunities and do they believe that they can realistically implement [them]? There\u2019s no sense creating goals that are fiction. I don\u2019t believe in that kind of stuff,\u201d he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, Assad noted that he thinks Lockheed can bring unit costs down even further than its current goal: an $80 million F-35A conventional takeoff and landing model by 2020.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cI think our view is we believe there is opportunity in the entire chain, from Lockheed Martin to Northrop to BAE to their subcontractors. We want to work with the companies collaboratively to get on that path for improvement,\u201d he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Assad announced the deep-dive review in March, saying he hoped it would help the department learn where to de-layer the supply chain and push companies to invest their own funds on cost-cutting improvements to the manufacturing process.<\/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\/air\/2017\/03\/23\/top-pentagon-official-takes-aim-at-f-35-cost-supply-chain\/\" 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=\"200\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/635736900194583592-16984386919-fae45908e5-kjpg.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\">Top Pentagon official takes aim at F-35 cost, supply chain<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">Shay Assad made it clear he expects companies to do more to reduce costs.<\/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\">In September, Vice Adm. Mat Winter, head of the F-35 joint program office, said Assad\u2019s work had already begun influencing the contract negotiations for an international block buy encompassing lots 12, 13 and 14.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cHe continues to provide valuable information to the [program executive officer] to better inform my production negotiations with Lockheed Martin Aero,\u201d Winter said. \u201cYou can read into that however you want. I can\u2019t give you any more details on that right now.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Shay Assad, the Pentagon&#8217;s director of defense pricing, is hopeful the deep dive could help lead to prices even lower than the Lockheed Martin&#8217;s goal of an $80 million F-35A unit cost.<\/p>\n","protected":false},"author":7,"featured_media":35173,"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":[]},"categories":[7,160,36],"tags":[],"coauthors":[3384],"class_list":["post-40325","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-air","category-daily-news-roundup","category-newsletters"],"acf":{"subheadline":"","legacy_arc_id":"HAVRK4VNGNC67JGBVGRL3QS7ZU","arc_canonical_url":"\/air\/2017\/10\/24\/pentagon-kicks-off-intensive-f-35-cost-review\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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