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Pentagon Protected From ‘Open-Ended’ F-35 Overruns, Lynn Says

The Pentagon is protecting itself from “open-ended” cost overruns on Lockheed Martin Corp.’s F-35 jet, such as the $918 million estimated on the first three production contracts, Deputy Defense Secretary William Lynn told lawmakers last month.

The fourth production contract that’s been signed, a fifth that’s in negotiations and future orders “will include equitable sharing arrangements, as well as a ceiling price so as to cap the government’s liability” Lynn wrote July 25 to members of the Senate Armed Services Committee.