Some F-35 news from the Air Force Association (3 Stories)
Lightning Bargains: Lockheed Martin will likely quote a price for the fourth production lot of F-35 strike fighters that is “about 20 percent below” the estimate developed by the Pentagon’s cost assessment and program evaluation group, company CEO Bob Stevens told reporters Thursday in Arlington, Va. Stevens said Lockheed Martin has managed to cut the unit cost of the F-35 by 50 percent over the first several production lots, and is so confident that it can meet the target the company "will likely take a fixed-price incentive-type contract for Lot 4.” Accepting a fixed-price incentive fee deal at this point would be two years earlier than the previous plan, he said. The confidence stems from cost “actuals” from building the first production examples, and success in hitting this year’s flight test targets and learning curve, said Dan Crowley, aeronautics division chief operating officer and former F-35 program manager. A “handshake deal” with the government on Lot 4 is only a couple of weeks away, Crowley said. Lot 4 is for 32 aircraft; Lot 5 will be for 42 of the fighters.
Squeezing In Two More Shots: Lockheed Martin’s “Skunkworks” operation has figured out a way to increase the F-35’s air-to-air magazine by 50 percent, company officials told the Daily Report Thursday. With “very modest” changes to the weapon bay and “no changes to the outer mold line,” it will be possible for F-35s to carry up to six AIM-120 AMRAAMs internally instead of the four that it can now bear, one official said. (In this configuration, the F-35 would carry no internal bombs.) With six AMRAAMs inside, the F-35 would match the radar-missile capability of the F-22, but without the Raptor’s two infrared AIM-9 missiles. The company is briefing the Defense Department about the potential weapons bay refinement, which could be done as a product improvement in later lots. Limited internal carriage for air-to-air weapons has been one criticism of the F-35 in some circles.
Lockheed Claims Gen 5 at Gen 4 Price: The F-35 will ultimately match the prices of F/A-18 Super Hornets or the most advanced version of the F-16, Lockheed Martin CEO Bob Stevens said Thursday. “If we are able to secure the production volume that is necessary to drive down the learning curves, . . . our expectation is that the acquisition cost of the F-35 will be approximately comparable to a similarly-equipped F-18 or F-16 Block 60 airplane,” Stevens said in a briefing in Arlington, Va. This would be around $60 million 2010 dollars, he added. Steve O’Bryan, company vice president, said the cost quote by Stevens is contingent on no further delays in production and orders of around 4,500 aircraft—roughly the same number as F-16s that have been produced. Lockheed officials are confident in those numbers because the F-35 will replace not only F-16s, but also A-10s, F-18s, AV-8Bs, and other aircraft. Moreover, the F-35 price includes all the mission gear usually “sold separately” on fourth generation fighters, such as AESA radars, infrared search and track systems, electronic warfare equipment, and weapons pylons, said O’Bryan. (See Lightning Bargains above.)
35 million in 94 dollars is 50 million in 09 dollars. So we have a 66-200% increase, depending on the year that you're looking at. And while the cost has certainly gone up, it is either on a par with or less than the costs quoted for PAK-FA, EF Typhoon, Dassault Rafale, Gripen NG, etc. while being vastly more capable than all of the aforementioned. Consider, for instance, that the USN is currently paying approximately 80 million for SHornets even with a multi-year procurement contract. The cost was obviously underestimated, but the costs seem to be well within reason.
