Lockheed, Pentagon Continue Negotiations on F-35 Purchase Deal
July 18, 2012 6:00 AM
comment(s) - last by
Negotiations continue between Lockheed and the Pentagon
Negotiations between the Pentagon and Lockheed Martin started last year to iron out all the details for the purchase of 32 F-35 fighters. The reason negotiations on pricing have dragged on for so long is due to the Pentagon's use of new pricing data according to Defense News. DOD officials are now using what's being called a "should-cost" estimate for the purchase of the F-35 fighters based on data from the previous four F-35 purchases.
Undersecretary of Defense for Acquisition Technology and Logistics, Frank Kendall, says that the Pentagon's move to "should-cost" estimates were used to develop a "bottoms-up cost estimate based on that previous history."
“We started negotiations on the government side with a very well-documented set of costs, called the should-cost, and then we were able to compare that to the bid that we received, item-by-item, line-by-line,” Kendall said during a July 16 meeting with a small group of reporters in his Pentagon office. “Going through and trying to resolve the differences has been the process that has taken so long.”
Kendall also notes that once negotiations conclude, "We’ll be in a very good place to go ahead and negotiate for future lots."
A group of Lockheed F-35B Lightning II fighters [Source: Lockheed Martin]
The Pentagon has been working hard to put pricing pressure on Lockheed Martin for F-35 purchases despite reducing the number of aircraft required over the next five years by 179 units. Typically, every time purchase plans are reduced by any partner nation, pricing for the F-35 increases.
Kendall also believes that sequestration, or mandatory spending cuts that will go into effect in January, will not affect every F-35 acquisition contract. Sequestration only applies to funding that is not yet obligated according to Kendall.
The Pentagon is fighting for every penny it can save on the F-35 fighters as the overall
of the F-35 program continues to soar.
This article is over a month old, voting and posting comments is disabled
RE: Has anyone else noticed the transformation of marketing?
7/18/2012 11:32:17 PM
I agree that the days of WW2 are, thankfully, over. Wars will never be fought like that again... at least this side of a nuclear holocaust.
Military complex time tables in peacetime are much different than those in wartime. Your first paragraph is one such example. Granted, it would take considerably more resources to repair such an advanced ship in comparison to a WW2 vessel. However, in wartime, I wouldn't necessarily make the statement that it would take more time. Especially because survival is a necessity, many "impossible" things often happen in a short period of time when pressed. To be clear, I'm not saying the time frame would be similar or even scaled appropriately... I'm simply stating that it's not so cut-n-dry when you factor in man's capacity for doing difficult things when necessary.
I'll concede, at the end of the day, it's hard to tell either way. That's largely why I would never want the US to get to a point where it can no longer enjoy the application of its overwhelming force doctrine. It's also why I would never want it to lose its nuclear capability. But another day, another conversation, I guess.
"When an individual makes a copy of a song for himself, I suppose we can say he stole a song." -- Sony BMG attorney Jennifer Pariser
New Estimates Peg the Lifetime Cost of Lockheed F-35 Lightning II at $1.45 Trillion
March 29, 2012, 11:21 AM
Creationists are Mad About Google Doodle Depicting Evolution
November 24, 2015, 8:48 PM
DHS and TSA: Whoops, We Missed That 73 Airport Employees May be Terrorists
November 19, 2015, 2:16 PM
Star Wars Spinoff Film "Rogue One", Theme Park Attractions Announced
August 17, 2015, 12:20 PM
SpaceX Falcon 9's Seventh Supply Mission to ISS Ends w/ Fiery Stage 1 Explosion
June 28, 2015, 1:10 PM
Cool Science Video: Glowing Millipede Prowls the Nevada Desert
May 18, 2015, 12:00 PM
Newly Discovered Costa Rican Glass Frog is Kermit's Doppelgänger
April 22, 2015, 11:26 AM
Most Popular Articles
Free Windows 10 offer ends July 29th, 2016: 10 Reasons to Upgrade Immediately
July 22, 2016, 9:19 PM
Top 5 Smart Watches
July 21, 2016, 11:48 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information