Lockheed Says $4 Billion F-35 Order Terms Are Under Negotiation
Lockheed Martin Corp. (LMT) said it reached agreement with the Pentagon to build as many as 30 F-35 Joint Strike Fighter jets in the fifth production lot valued at as much as $4 billion.
The final negotiations on the price of the aircraft and other terms are still under negotiation, company spokesman Joseph LaMarca said in a phone interview.
Earlier today, the Pentagon announced that it had awarded a $4 billion order for 30 F-35 jets to the Bethesda, Maryland- based company. The Pentagon statement said the order included 21 Air Force models, six Navy versions and three Marine Corps models of the airplane.
The agreement sets the maximum amount the Pentagon may spend on the production lot and the terms may change until a so- called definitized contract next year, Lockheed spokesman Michael Rein said in an e-mail.
The announcement “is an important first step in paving the way for the full contract negotiations,” Rein said.
Lockheed and the Pentagon agreed on an undefinitized contract action, said Joe DellaVedova, spokesman for the F-35 program office. The accord will allow Lockheed to continue building advanced parts for the next lot of F-35 jets, he said in a phone interview.
Negotiations on the final terms of the fifth lot are continuing and are expected to be completed in early 2012, DellaVedova said.
To contact the reporters on this story: Gopal Ratnam in Washington at gratnam1@bloomberg.net; Tony Capaccio in Washington at acapaccio@bloomberg.net
To contact the editor responsible for this story: Mark Silva at msilva34@bloomberg.net
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