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.
"We’re Apple. We don’t wear suits. We don’t even own suits." -- Apple CEO Steve Jobs
New Estimates Peg the Lifetime Cost of Lockheed F-35 Lightning II at $1.45 Trillion
March 29, 2012, 11:21 AM
EQ-Radio: A New Device for Wirelessly Detecting Emotions
September 26, 2016, 5:00 AM
Are you ready for this ? HyperDrive Aircraft
September 24, 2016, 9:29 AM
A is for Apples
September 23, 2016, 5:32 AM
FDA Cleared, Shockwave Lithoplasty for Peripheral Vascular Disease
September 22, 2016, 5:45 AM
UN Meeting to Tackle Antimicrobial Resistance
September 21, 2016, 9:52 AM
ADHD Diagnosis and Treatment in Children: Problem or Paranoia?
September 19, 2016, 5:30 AM
Most Popular Articles
5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
Laptop or Tablet - Which Do You Prefer?
September 20, 2016, 6:32 AM
Update: Samsung Exchange Program Now in Progress
September 20, 2016, 5:30 AM
Smartphone Screen Protectors – What To Look For
September 21, 2016, 9:33 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM
Latest Blog Posts
Who is in Risk of Getting Oral Cancer?
Sep 23, 2016, 6:02 AM
France Bans Plastic Eating Utensils in Restaurants
Sep 18, 2016, 10:49 AM
Progress Against Acute Myeloid Leukemia
Sep 17, 2016, 5:30 AM
Apple Watch Series 2 - Number 1 in the Customer Satisfaction.
Sep 7, 2016, 6:19 PM
First Self-Driving Car debut on the streets of Singapore
Aug 28, 2016, 4:10 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information