Ahead of Sequester, Lockheed Locks Down $334 Million F-35 Contract

Just hours before the government's "sequester" plan went into effect, the Department of Defense announced Thursday that it has awarded Lockheed Martin (NYSE: LMT  ) a $333.8 million contract related to the F-35 Lightning II fighter jet.

The contract will fund purchase of long lead-time parts, materials, and components required to manufacture 35 "Low-Rate Initial Production Lot VIII" F-35s scheduled to be produced for multiple purchasers:

  • 19 conventional takeoff and landing F-35As for the U.S. Air Force.
  • 6 short takeoff / vertical landing F-35Bs for the U.S. Marine Corps.
  • 4 Carrier Variant F-35Cs for the U.S. Navy.
  • 4 F-35Bs for the British armed forces.
  • 2 F-35As for the Norwegian armed forces.

This contract is set to be completed by February 2014.

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  • Report this Comment On March 01, 2013, at 12:39 PM, LordSquidworth wrote:

    "4 F-35Bs for the British armed forces.

    2 F-35As for the Norwegian armed forces."

    Why is that in a US Department of Defense contract?

    Aside from the waste of money the F-35 has already been...

  • Report this Comment On March 01, 2013, at 7:24 PM, TMFDitty wrote:

    Don't ask me the rationale, but sales of U.S. arms manufactured by defense contractors are often structured as government-to-government sales, with USG acting as intermediary.

    So here, for example, USAF will probably buy the planes, then USG will sell them on to UK's MOD or ... whatever the Norwegian equivalent is.

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