Pentagon and Lockheed Martin Reach Agreement Reducing F-35A Cost by 12.8 Percent | Lockheed Martin GPS Spatial Temporal Anti-Jam Receiver (GSTAR) System to be Integrated in F-35 Modernization

press release







FORT WORTH, Texas, Oct. 29, 2019 /PRNewswire/ -- The F-35 Joint Program Office and Lockheed Martin (NYSE: LMT) finalized a $34 billion agreement for the production and delivery of 478 F-35s at the lowest aircraft price during the history of the Program. This contract includes all U.S., International Partners and Foreign Military Sales aircraft in Lots 12, 13 and 14.




In the agreement, the F-35 Enterprise meets and exceeds its long-stated cost reduction targets for each variant – and the F-35A unit price, including aircraft and engine, is now below $80 million in both Lot 13 and Lot 14, the F-35A unit cost represents an estimated overall 12.8 percent reduction from Lot 11 costs for the conventional landing variant, and an average of 12.7 percent savings across all three variants from Lot 11 to 14.








"Driving down cost is critical to the success of this program. I am excited that the F-35 Joint Program Office and Lockheed Martin have agreed on this landmark three-lot deal. This agreement achieves an average 12.7 percent cost reduction across all three variants and gets us below $80 million for a USAF F-35A by Lot 13 - one lot earlier than planned," said Air Force Lt. Gen. Eric Fick, F-35 Program Executive Officer. "This $34 billion agreement is a truly historic milestone for the F-35 Enterprise."

The agreement includes 291 aircraft for the U.S. Services, 127 for F-35 International Partners, and 60 for F-35 Foreign Military Sales customers. Price details include:

Variant	Lot 12	Lot 13	Lot 14	% Reduction from Lot 11*
F-35A	$82.4M	$79.2M	$77.9M	12.8%
F-35B	$108.0M	$104.8M	$101.3M	12.3%
F-35C	$103.1M	$98.1M	$94.4M	13.2%
*Please note: Final prices for F-35 variants following adjustments for Congressional plus-ups and other contractual settlements are as follows: F-35A - $89.3M; F-35B - $115.5M; and F-35C - $108.8M.

"With smart acquisition strategies, strong government-industry partnership and a relentless focus on quality and cost reduction, the F-35 Enterprise has successfully reduced procurement costs of the 5th Generation F-35 to equal or less than 4th Generation legacy aircraft," said Greg Ulmer, Lockheed Martin, F-35 Program vice president and general manager. "With the F-35A unit cost now below $80 million in Lot 13, we were able to exceed our long-standing cost reduction commitment one year earlier than planned."

The sub $80 million unit recurring flyaway cost for an F-35 represents an integrated acquisition price for the 5th Generation Weapon System. With embedded sensors and targeting pods, this F-35 unit price includes items that add additional procurement and sustainment costs to legacy 4th Generation aircraft.

Program Progress

With more than 450 aircraft operating from 19 bases around the globe, the F-35 is playing a critical role in today's global security environment. More than 910 pilots and 8,350 maintainers have been trained, and the F-35 fleet has surpassed more than 220,000 cumulative flight hours. Eight nations have F-35s operating from a base on their home soil and seven Services have declared Initial Operating Capability.

In addition to strengthening global security and partnerships, the F-35 provides economic stability to the U.S. and International Partners by creating jobs, commerce and security, and contributing to the global trade balance. The F-35 is built by thousands of men and women in America and around the world. With more than 1,400 suppliers in 46 states and Puerto Rico, the F-35 Program supports more than 220,000 direct and indirect jobs in the U.S. alone. The Program also includes more than 100 international suppliers, creating or sustaining thousands of jobs.

For additional information, visit our website: https://www.f35.com/.

Lockheed Martin GPS Spatial Temporal Anti-Jam Receiver (GSTAR) System to be Integrated in F-35 Modernization

OWEGO, N.Y., Oct. 29, 2019 – Lockheed Martin (NYSE: LMT) received a $25 million initial contract award for engineering and manufacturing development (EMD) for the GPS Spatial Temporal Anti-Jam Receiver (GSTAR) system that will be integrated into the F-35 as part of its modernization phase, also known as Block 4. The GSTAR system will replace the current Antenna Electronics Unit (AEU) and will provide enhanced capabilities including the next-generation, anti-jam solution and provide a significant weight and cost reduction to the aircraft.

The F-35 today is the most technologically advanced fighter ever built. As threats advance and technology evolves, the joint government and industry team is modernizing the system to ensure it remains a step ahead. GSTAR is one of several key enhancements planned across the F-35’s sensors, data links, engine, mission systems, weapons and more.

“We are proud to be the supplier of choice for the F-35 upgrade program and look forward to providing the GSTAR system for years to come,” said Hamid Salim, vice president, Advanced Product Solutions at Lockheed Martin Rotary and Mission Systems. “This award is a testament to our Lockheed Martin-wide focus on innovation and advanced technology for the F-35 and our warfighters.”

The GSTAR is a fully digital system that provides the greatest protection against adversarial jamming and spoofing by utilizing critical GPS capabilities that can quickly adapt to meet specific platform requirements. The GSTAR system includes a dynamic range Radio Frequency (RF) front-end, digital beamformer and receiver that has been tested and proven against a variety of threat scenarios.

Lockheed Martin is a leader in the development of anti-jam GPS (AJ-GPS) technology for 20 years and has fielded more than 2,500 GSTAR systems. The GSTAR system provides highly effective digital Electronic Protection (EP) for any platform that relies on GPS for navigation.

With stealth technology, advanced sensors, supersonic speed, weapons capacity and superior range, the F-35 is the most lethal, survivable and connected aircraft in the world. More than a fighter jet, the F-35's ability to collect, analyze and share data, is a powerful force multiplier that enhances all airborne, surface and ground-based assets in the battlespace enabling men and women in uniform to execute their mission and return home safely.

For additional information, visit: www.lockheedmartin.com/ew