Lockheed Values Sale of 32 F-35s at Over $5 Billion

Lockheed Martin Corp. agreed to build 32 Joint Strike Fighters, and absorb some of any cost increases, in a U.S. Defense Department order that may be valued at more than $5 billion.

The contract is for the fourth batch of early production- model jets on a so-called fixed-price plus incentives basis. Defense companies usually work on a cost-plus basis during a weapon’s development, with taxpayers picking up any growth in expenses.