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?
7/19/2012 9:25:15 AM
Yeah, the AF has had a love/hate relationship with the A10s. Not because they have issues, but because defies the predominant philosphy in the AF. Air-Air. They were hell bent on getting rid of them until they proved themselves during the first gulf war. They then realized the stupidity of F16s taking there place and killed that idea. They want the F35 to replace it, but we dont have them yet.
Im not confused about the two. With the advancements in metalergy, testing they have been able to certify, retrofit some platforms to keep them in the sky. Doesnt always work out. (F15 cockpit separates from plane while in the air). Other advancements have allowed us to extend the planned service life of others. You're right. block upgrades dont normally address them but sometimes they are combined with retrofits.
"My sex life is pretty good" -- Steve Jobs' random musings during the 2010 D8 conference
New Estimates Peg the Lifetime Cost of Lockheed F-35 Lightning II at $1.45 Trillion
March 29, 2012, 11:21 AM
Newly Discovered Costa Rican Glass Frog is Kermit's Doppelgänger
April 22, 2015, 11:26 AM
Researchers Hope to Find "Exotic" Lifeforms Inside Crater of Dinosaur Killing Meteor
April 14, 2015, 8:47 PM
Mathematician's Sociological Formulation May Explain the "Hipster Paradox"
April 14, 2015, 1:13 PM
Cool Science Video: This is What a McDonald's Burger Looks Like in Your Stomach
April 7, 2015, 1:43 PM
Fraud Artist Engineered Stunning UK Jailbreak Via Typosquatting, Email
April 4, 2015, 2:57 PM
Food Chemists at Italy's Barilla Claim to Have Perfect Instant Noodles w/out Frying
March 26, 2015, 4:25 PM
Most Popular Articles
Raytheon $1.9 Billion Purchase of Websense Raises Tough Questions
April 20, 2015, 1:57 PM
HBO to VPN HBO Now Users: Prove You Live in U.S. or We Will Terminate You
April 21, 2015, 12:17 PM
AMD CEO: Windows 10 Will Launch at "The End of July"
April 20, 2015, 7:24 PM
Quick Note: Lady Macbath -- One Japanese Woman's Apple Themed Revenge
April 23, 2015, 11:47 AM
After Record-Setting Week, Samsung Predicts 70 Million GS6/GS6 Edge Sales
April 17, 2015, 8:39 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 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information