oykie From Norway, joined Jan 2006, 2778 posts, RR: 4 Posted (1 year 6 months 3 weeks 1 day 14 hours ago) and read 3002 times:
Prices will be 2.5% lower for LRIP 6 and 6% lower for the LRIP7 compared to LRIP5. Prices for the F35A will be less than 100 million USD in LRIP7. Then there is LRIP8 before FRP-1 that will hopefully reach more than 100 planes each year.
oykie From Norway, joined Jan 2006, 2778 posts, RR: 4
Reply 1, posted (1 year 6 months 3 weeks 22 hours ago) and read 2871 times:
To add to this thread, and to clearify. LM has a contract to buy 36 planes in LRIP6 and 35 planes in LRIP7 securing a firm order for 71 planes. Long lead items for LRIP8 has been ordered by the pentagon.
It seems like this program is progressing in the right direction.
Dream no small dream; it lacks magic. Dream large, then go make that dream real - Donald Douglas
Without engine. Each engine is about $14-$30 Million depending on model. And also not including $7 million or so in concurrency related work that will be needed.
Not counting the price of the engine, which is a separate contract with Pratt & Whitney, 23 F-35A model aircraft are being purchased for $103 million per aircraft, while six F-35B will cost $109 million each. The seven F-35C bought under LRIP 6 will cost $120 milion per jet.
Additionally, a concurrency clause in both contracts requires Lockheed to share costs equally with the government for known concurrency changes coming out of testing.
Ozair From Australia, joined Jan 2005, 960 posts, RR: 2
Reply 5, posted (1 year 6 months 3 weeks 2 hours ago) and read 2657 times:
Quoting tommytoyz (Reply 3): Additionally, a concurrency clause in both contracts requires Lockheed to share costs equally with the government for known concurrency changes coming out of testing.
Just wait for that too......
Tommy, the concurrency changes are the US$7 million rework costs you already mentioned, there are no further rework costs. As listed above they are shared between LM and USDoD. So the US is liable for only half that amount, US$3.5 million per jet and down .4 million from the previous estimate. This is not a fixed cost, it is a value based on known required corrective issues as well as an estimate of future costs based on previous USDoD program experience.
Lt. Gen. Christopher Bogdan, the Air Force’s program executive officer for the F-35 Joint Strike Fighter, the previous week mentioned a similar strategy for future contracts with prime contractor Lockheed Martin and Pratt & Whitney, which makes the aircraft’s engine.
The recently negotiated contract for a seventh lot of aircraft is set at a fixed price. If the companies exceed the contractual funding level, there is no risk to the Air Force, Bogdan said. All F-35 purchases going forward will be so worded
So any future cost overruns are now LM's problem with no additional charges to the USDoD.