US Navy Awards Lockheed Martin 1 Billion Deal

US Navy Awards Lockheed Martin

US Navy Awards Lockheed Martin one billion dollar deal. The deal are in logistics and maintenance services for the F-35 Lightning II program, according to a Defense Department contract announced this week.

The cost-plus contract will cover ground maintenance and tank activation, as well as initial training for pilots and maintainers in the Air Force, Navy, Marine Corps and foreign customers. Lockheed will also carry out work on its Autonomous Logistics Information System (ALIS), the astute network designed to manage the flow of spare parts to domestic and foreign F-35s.

In 2014, the F-35 Joint Program Office estimated that maintenance over the life cycle of the F-35 fleet would cost USD 891 billion. Despite its multi-million dollar price, ALIS represents less than 2% of the program's total maintenance costs, according to a Government Accountability Report for 2016 on the F-35. The same GAO report warned that performance problems or delays in ALIS-related schedules could precipitate between USD 20-100 billion in additional costs.

Meanwhile, Lockheed and its partners announced plans to invest in a new round of cost reduction initiatives aimed at sustainability at the 2016 Farnborough Aeronautics Fair. Industry partners invested $ 250 million for fiscal years 2018 through 2022, which could save USD 1 billion in maintenance costs.