Pentagon Advances $1.3 Billion to Lockheed for Biggest F-35 Job

  • Down payment on 10th production job comes as talks continue
  • Eventual contract could be valued at as much as $7.2 billion

at MCAS Beaufort on March 8, 2016 in Beaufort, North Carolina.

Photographer: Jeff J Mitchell/Getty Images
Lock
This article is for subscribers only.

Lockheed Martin Corp. received a $1.28 billion Pentagon down payment to continue production of the F-35 jet while negotiations continue on a contract valued as much as $7.19 billion for 90 aircraft, the biggest order yet.

The $1.28 billion released Wednesday under what’s known as an “undefinitized contract action” will bankroll continued assembly for jets that won’t be delivered until 2018, pay hard-to-maintain suppliers and correct deficiencies found in testing on earlier jets, the Defense Department said in a statement.