Lockheed: F-35 Partners Won’t Suffer Unduly from Production Slowdown AIN Defense Perspective » February 17, 2012 by Chris Pocock
"...Under F-35 procurement procedures, the partners pay the same unit recurring flyaway cost as the U.S. for the aircraft that they order in each annual or (eventually) multi-year buy. Smaller order quantities should mean higher unit prices, but countering this trend, Scott told AIN, is the fact that “as we refine the supply chain and the production processes, the price will continue to reduce.”
Scott noted that six of the eight partners now have committed to or ordered aircraft. “They’re all in it together, and have been for 10 years now,” he said, referring to the system design and development phase in which all of them made contributions. These ranged from $2 billion from the UK, a Level 1 partner, to $1 billion from Italy and $800 million from the Dutch as Level 2 partners to $125 million to $175 million from the remainder, as Level 3 partners.
The British (three) and the Dutch (two) have already ordered aircraft, Scott noted. Australia (two) and Italy (four) are placing their first orders in Low Rate Initial Production (LRIP) Lot 6, and have already funded long-lead production items. Turkey is following in LRIP 7, and Norway (four) in LRIP 8. Canada and Denmark are the two partners who have yet to commit. The first deliveries to Israel and Japan will be from LRIP 8...."
Source: http://www.ainonline.com/aviation-news/ ... n-slowdown
JSF price bickering 28 Jun 2012
http://www.australiandefence.com.au/new ... -bickering
"A Lockheed Martin official said last week that he believes the company will reduce the price of the three variants of the F-35 Joint Strike Fighter to the point that the F-35A will only cost $US70 million apiece, at least 10 percent lower than government estimates, because it doesn’t include costs for things like spares and support equipment.
Asked at a June 19 media event what the eventual price target is for the F-35, Steve O’Bryan, Lockheed vice president for F-35 business development, said “we still believe that the F-35A, with all the mission systems and all that, comes out to about $70 million in 2012 dollars.”
Michael Rein, a Lockheed spokesman, said later that while the company didn’t have similar targets for the Navy and Marine Corps variants, the price drop would be similar. That estimate includes the engine, according to Rein.
O’Bryan said his belief is based on the company’s estimates as well as the government’s in a Selected Acquisition Report.
However, the SAR lists the F-35A’s unit recurring flyaway (URF) cost at $US67.8 million plus $US10.9 million for the engine, or about $US9 million above the figure quoted by O’Bryan—Inside Defense"