{"id":63902,"date":"2023-04-04T19:08:31","date_gmt":"2023-04-04T19:08:31","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2023\/04\/04\/lockheed-eyes-performance-based-logistics-deal-for-f-35-by-end-of-2023\/"},"modified":"2026-08-08T00:52:28","modified_gmt":"2026-08-08T00:52:28","slug":"lockheed-eyes-performance-based-logistics-deal-for-f-35-by-end-of-2023","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/newsletters\/2023\/04\/04\/lockheed-eyes-performance-based-logistics-deal-for-f-35-by-end-of-2023\/","title":{"rendered":"Lockheed eyes performance-based logistics deal for F-35 by end of 2023"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">NATIONAL HARBOR, Md. \u2014 The <a href=\"https:\/\/www.defensenews.com\/newsletters\/2023\/04\/03\/just-in-time-f-35-supply-chain-too-risky-for-next-war-general-says\/\" target=\"_blank\">F-35 Joint Strike Fighter program<\/a> could have its first, limited, five-year performance-based logistics contract by the end of the year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Lockheed Martin, the <a href=\"https:\/\/www.defensenews.com\/industry\/2022\/11\/18\/f-35-costs-have-been-declining-thats-about-to-change\/\" target=\"_blank\">main manufacturer of the F-35<\/a>, has wanted to move to a <a href=\"https:\/\/www.defensenews.com\/air\/2022\/09\/01\/lockheed-pentagon-claim-theyre-reining-in-f-35-sustainment-costs\/\" target=\"_blank\">performance-based logistics contract<\/a> since 2019, saying it would save the government money, allow faster repairs and result in improved availability of spare parts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Pentagon is cautiously open to the idea, but lawmakers have been skeptical. The 2022 National Defense Authorization Act limits the Pentagon\u2019s ability to enter into one of these contracts for the F-35. Before agreeing to such a deal, lawmakers said, the department must first show such a deal would either lower costs or improve readiness over the 2021-2023 contract worth up to $6.6 billion.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Performance-based logistics contracting means the contractors are paid on expected performance outcomes, instead of the typical \u201ctransactional\u201d model where contractors are paid for discrete parts and services.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Bridget Lauderdale, vice president and general manager of the F-35 program for Lockheed Martin, said on Monday the company is working together with the F-35 Joint Program Office to transition to a <a href=\"https:\/\/www.defensenews.com\/smr\/air-force-priorities\/2021\/02\/24\/lockheed-has-a-new-f-35-sustainment-proposal-for-the-pentagon-aimed-at-improving-readiness\/\" target=\"_blank\">performance-based logistics contract<\/a> covering supply by the end of 2023. Lauderdale made her comments during a panel at the Navy League\u2019s Sea Air Space conference in National Harbor, Maryland.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The JPO said in a statement to Defense News that could happen, but did not commit to such a contract being awarded.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cAssuming the [performance-based logistics contract] meets the conditions laid out in [the 2022 NDAA] the [contract] could be awarded by the end of 2023,\u201d JPO spokesman Russell Goemaere said in an email.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Goemaere said the supply chain contract being considered would cover all F-35s worldwide, including those flown by the U.S., partner nations, and foreign military sales customers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Lauderdale said a performance-based logistics contract would cover all companies involved in the F-35 supply chain.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThat\u2019s not just a Pratt &amp; Whitney [the manufacturer of the F-35\u2032s engines], LM [Lockheed Martin], that would be the entire industry participating,\u201d Lauderdale said. \u201cThe expectation is that it improves performance and speed, and it reduces cost.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And she said such a deal would differ from previous, time-consuming \u201ctransactional\u201d agreements by, for example, allowing the option of repairing parts instead of replacing them with new pieces.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Lockheed officials told reporters in an August 2022 briefing that the performance-based logistics contract it was proposing would run from 2024 to 2028. Lockheed said then it was working with the JPO, the Office of the Secretary of Defense, and the Pentagon\u2019s Office of Cost Assessment and Program Evaluation to analyze the proposed contract and compare its costs and readiness predictions to the 2021-2023 contract.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Air Force acquisition chief Andrew Hunter said in a March 7 roundtable with reporters at the Air and Space Forces Association\u2019s conference in Colorado that the JPO planned to leverage the negotiations over the performance-based logistics contract to obtain more rights to the data on the F-35.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The military wants to be able to conduct more sustainment work on the F-35 at its own \u201corganic,\u201d or in-house, facilities. But to do that, it needs access to more of Lockheed Martin\u2019s proprietary data on the fighter, which has resulted in a years-long dispute with the contractor.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Air Force Secretary Frank Kendall said at that AFA roundtable that when the Pentagon struck its original F-35 deal with Lockheed Martin, \u201cthe government wasn\u2019t diligent about getting the data rights it needs, and I think that\u2019s created a lot of difficulties over the past 20-odd years.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After Monday\u2019s Sea Air Space panel, F-35 program executive officer Lt. Gen. Michael Schmidt told reporters that the military has recently made progress in resolving some of its disagreements over data with Lockheed Martin. When the Pentagon negotiated the newest contract for lots 15-17 of the F-35 contract in 2022, it included more ability to order data on the F-35, he said. This data sharing agreement covers previous contracts as well as the new contract, and did not cost the government anything, Schmidt said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThat was a big win,\u201d Schmidt said. \u201cWe didn\u2019t stand this program up previously to be a traditional organic maintaining kind of thing, but we\u2019re moving more and more in that direction.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Schmidt said that Lockheed Martin isn\u2019t necessarily resisting giving the military some of the data it needs. The problem, he said, is that the data is not in a format the military can use, but conversations are taking place about how to resolve that issue.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cCertainly we have our [intellectual property] issues still that we work through, but that\u2019s not necessarily the big\u201d limiting factor, Schmidt said. \u201cIt\u2019s getting the right data, the data that we need to go do the things we need to do in the field, or in the depot with the data. More and more, we have the tools to be able to do that, and the industry is being cooperative in that.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The head of the F-35 program also said the military has recently made progress in getting access to more of the fighter&#8217;s data from Lockheed Martin.<\/p>\n","protected":false},"author":7,"featured_media":58724,"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":36,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":{"8":{"categories":["management","budget","federal-oversight","congress","contracting","govcon"],"primary_category":"govcon"}}},"categories":[7,160,29,93,36],"tags":[],"coauthors":[3412],"class_list":["post-63902","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-air","category-daily-news-roundup","category-digital-show-dailies","category-navy-league","category-newsletters"],"acf":{"subheadline":"","legacy_arc_id":"3LWMKXMCFBBQ7DX6SO6BPFHPYU","arc_canonical_url":"\/air\/2023\/04\/04\/lockheed-eyes-performance-based-logistics-deal-for-f-35-by-end-of-2023\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Lockheed eyes performance-based logistics deal for F-35 by end of 2023 - Defense News<\/title>\n<meta name=\"description\" content=\"The head of the F-35 program also said the military has recently made progress in getting access to more of the fighter&#039;s data from Lockheed Martin.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Lockheed eyes performance-based logistics deal for F-35 by end of 2023\" \/>\n<meta property=\"og:description\" content=\"The head of the F-35 program also said the military has recently made progress in getting access to more of the fighter&#039;s data from 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