Lockheed Martin and the Pentagon reached an agreement announced Thursday in which the defense contractor will self-fund at least $7 billion in initiatives to bolster the agency’s F-35 Lightning II Joint Strike Fighter fleet.
The deal spans 10 years and includes orders for 850 U.S. fighter jets as well as “associated initial spares,” modification kits and maintenance, according to Lockheed’s press release. The contract also includes international customer orders at a continued production rate of 156 aircraft a year.
Congress will have to approve the deal before it can be finalized, the agency said. The F-35 Lightning II program is part of the Pentagon’s $1.5 trillion proposal for fiscal year 2027, including a $21.4 billion request for the fighter jet project.
If approved, the deal would also help stabilize the F-35’s supply chain for bulk procurement of raw materials and critical parts, and it would reduce bottlenecks, according to the press release.
The partners aim to drive down unit prices and provide cost predictability for the U.S. government. Additionally, the contract would improve the workforce and supply chain issues in the defense industrial base as well as bolster readiness for F-35 customers worldwide by improving interoperability across U.S. allies’ fleets.
