Pentagon Aims To Finalize Lockheed F-35 Contract Within Days

By Reuters
September 26, 2013
Credit: SSgt Nicholas Egebrecht/U.S. Air Force

The Pentagon expects to finalize a contract with Lockheed Martin Corp (LMT.N) for the sixth and seventh batches of F-35 fighter jets within days, the deputy director of the $392 billion program said on Wednesday.

Navy Rear Admiral Randy Mahr, the No. 2 official in charge of the F-35 program, said all but two issues had been resolved, and he hoped to get those addressed soon.

“We have a few minute things that we have to finish off there,” Mahr told a small group of reporters. “We just want to get it done.”

He did not identify the two remaining issues.

Mahr said the process of finalizing the agreement for 71 more jets had taken less time than during the previous contract negotiations, but it was still taking longer than the Pentagon would like.

Lockheed and the Pentagon announced an agreement in principle for the 71 next fighter jets on July 30, and had hoped to finalize the details within a month.

The agreement in principle covers 36 jets in a sixth batch, with each warplane to cost about 4 percent less than the previous lot, and 35 jets in a seventh batch, also at a 4 percent discount.

Analysts say the two deals will be worth a combined $7 billion.

Lockheed and the Pentagon hope to reach agreement on pricing for an eighth batch of F-35 jets by early next year, he said.

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