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F-35 Costs Declining: Lockheed and Pentagon See Progress
8 Sep
Summary
- F-35 sustainment costs are decreasing, according to Lockheed and the Pentagon.
- Newer F-35 models are more reliable, failing after 14 flight hours.
- Lockheed Martin is using bulk purchasing and digital tools to cut costs.
Lockheed Martin and the Pentagon announced on Wednesday that efforts to reduce the sustainment costs of the F-35 fighter jet are showing positive results, with a trend expected to continue. Although specific 2021 cost-per-tail figures were not released, spokespeople confirmed a decrease from 2020 numbers. For instance, a Government Accountability Office report previously indicated high costs for F-35 variants, exceeding service goals.
Company officials detailed strategies to lower operational expenses, such as extending the service life of spare parts on the aircraft. This approach, combined with advancements in design and production, has led to newer F-35s being more reliable, typically experiencing a failure after 14 flight hours compared to earlier models. Lockheed Martin also highlighted its use of digital transformation and bulk purchasing strategies for spare parts, anticipating significant savings.
To further drive down costs, Lockheed Martin has implemented a strategy of signing long-term advance contracts with suppliers, securing prices and ensuring material availability. This move is expected to save approximately $1.2 billion over a five-year period. The company is also exploring performance-based logistics contracts, which it believes could offer further efficiencies and improved aircraft availability for the U.S. Defense Department.
