The U.S. Department of Defense and Lockheed Martin announced a 10-year framework agreement on Thursday to produce at least 850 F-35 Lightning II fighter jets. The agreement covers production for the U.S. military as well as orders for international customers and includes spare parts, modification kits, and sustainment services through aircraft Lots 21-30.
The F-35 program has historically faced congressional scrutiny regarding cost overruns and the price of each aircraft. In 2017, then-President-elect Trump requested the company lower the cost per jet, a request to which Lockheed Martin agreed. Defense contractors have noted that the standard annual congressional appropriation process often creates instability for the defense industrial base and production lines.
Under the new agreement, Lockheed Martin will provide at least $7 billion in its own funding to support F-35 program initiatives. The company stated that the deal aims to produce 156 aircraft per year. Lockheed says the framework will enable bulk procurement of raw materials and critical parts, which it says will reduce logistics bottlenecks and turnaround times compared to the annual contracting cycle.
For the U.S. government, the multiyear model is expected to save taxpayers billions of dollars over the aircraft's lifecycle by securing long-term pricing and volume discounts. The shift from annual batches to a decade-long commitment is intended to stabilize the supply chain, which Lockheed Martin says will lead to higher mission-capable rates for the fleet.
The execution of this agreement is not immediate, as it remains subject to congressional authorization and appropriations. If Congress grants the necessary multiyear authority and funding in the coming months, the F-35 Joint Program Office and Lockheed Martin will then move to finalize specific contract terms, pricing, and delivery schedules. The agreement follows other recent Pentagon agreements for advanced weaponry.
What happens next: The deal now moves to Congress, where lawmakers must decide whether to authorize the multiyear procurement authority and appropriate the funds. Lockheed Martin said that if these approvals are granted in the coming months, a formal contract award will follow. The proposed production rate of 156 aircraft per year would be maintained throughout the 10-year period.