A newly released report from the U.S. Department of Defense shows that estimated acquisition costs dropped by nearly $1 billion from 2006 to 2007 for the Lockheed Martin F-35 Lightning II program.
The Selected Acquisition Reports estimate that F-35 program costs over the aircraft’s three-decade production run decreased by $981 million (-0.3 percent), from $299.8 billion to $298.8 billion. The F-35 cost reduction was attributed in part to lower material costs related to agreements made by Lockheed Martin and its subcontractors, and revised estimates of support costs.
Selected Acquisition Reports summarize the latest estimates of cost, schedule and technical status. The reports are prepared annually in conjunction with the president’s budget. The total program cost estimates provided in the SARs include research and development, procurement, military construction and acquisition-related operation and maintenance. Total program costs reflect actual costs to date as well as future anticipated costs. All estimates include anticipated inflation allowances.
The F-35 program is on schedule to deliver aircraft to the U.S. military services beginning in 2010. The first test aircraft has completed 40 flights and has exceeded performance and reliability expectations. The inaugural flight of the first short takeoff/vertical landing F-35B is on schedule for mid-2008. All 19 test aircraft are in production flow or on the flightline, and assembly has begun on the first two production F-35s.
