The U.S. Department of War has reached a framework agreement with Lockheed Martin covering the production and maintenance of F-35 Lightning II fighter jets, including at least 850 aircraft for the U.S. military over 10 years. The agreement also covers initial spare parts, 10 years of modification kits and sustainment services, and international customer orders across production Lots 21–30.
Lockheed Martin said production would continue at a rate of 156 aircraft annually. The F-35 is a fifth-generation stealth fighter equipped with advanced sensors and communication systems that allow pilots to gather and share battlefield information. More than 1,375 aircraft are currently fielded worldwide. Under the proposed decade-long arrangement, Lockheed Martin would invest at least $7 billion of its own funds in initiatives supporting the F-35 program.
The deal, however, remains subject to congressional authorization and appropriations.Faster military procurement pushThe agreement comes amid the Trump administration’s push to overhaul U.S. defense procurement, with a focus on faster weapons production, long-term contracts and greater private investment in manufacturing capacity.Last year, President Donald Trump signed an executive order aimed at speeding up military acquisitions and reducing bureaucratic delays.
The Pentagon has since pursued multiyear agreements
The Pentagon has since pursued multiyear agreements with defense contractors to expand production of critical weapons, including Patriot and THAAD missile interceptors.“We have fundamentally changed how we stabilize the American defense industrial base to produce at speed and scale,” said Under Secretary of War Michael P. Duffey. “This agreement with Lockheed Martin proves it.”Lockheed Martin Chairman, President and CEO Jim Taiclet said the long-term framework would allow the company to make upfront investments to expand production capacity, improve efficiency and strengthen its supply chain.“With the greater certainty that comes from the U.S.
government’s transformative approach to F-35 production and sustainment, we can make the upfront investments needed to expand capacity, improve efficiency, and build a more resilient supply chain,” Taiclet said.Lower costs, faster repairs, more jobsThe framework is expected to save U.S. taxpayers billions of dollars over the F-35’s lifecycle through bulk purchasing, long-term pricing agreements and supplier discounts, according to Lockheed Martin.By combining aircraft production with purchases of spare parts and modification kits, the company aims to reduce procurement costs and improve the availability of replacement components.“Our new multiyear framework gives suppliers stability to plan for the future and invest with confidence, improving readiness across the F-35 fleet,” said OJ Sanchez, president of Lockheed Martin Aeronautics.Long-term contracts would also allow suppliers to purchase raw materials and critical parts in larger quantities, potentially reducing production delays and repair turnaround times.During an earnings call Thursday, Lockheed Martin CEO Jim Taiclet said the agreement would enable suppliers to invest in hiring and software, while reducing delayed or substandard deliveries to the company’s F-35 production facility in Fort Worth, Texas.He said manufacturers meeting performance targets could earn higher profits under a fixed-price escalation model.
The agreement would also allow parts to be pooled across aircraft production and maintenance, helping secure better prices and support investments in testing capabilities.The company said the program would support 317,000 U.S. jobs and generate approximately $79 billion in annual economic activity over the next decade.
