Key facts
- The agreement is a prearranged long-term contract, not a formal order.
- Lockheed Martin aims to maintain annual production at 156 aircraft.
- The deal is expected to lower production costs and ease supply-chain constraints.
Lockheed Martin has reached an initial production and sustainment agreement with the Department of Defense for 850 F-35 fighter jets over the next 10 years. The defense contractor announced on Thursday that the deal, while not a formal order, is a long-term contract that sets the stage for finalizing terms, pricing, and schedules. The agreement also encompasses international orders, initial spares, and modification kits. Lockheed Martin anticipates that this arrangement will lead to reduced production costs and alleviate supply-chain challenges. The company estimates that the deal will support 317,000 US jobs and contribute approximately $79 billion in annual economic activity over the coming decade.