The Defense Department reached an agreement in principle with Lockheed Martin for Lot 5 low-rate initial production of the F-35 strike fighter, announced Pentagon officials. “It was a tough negotiation,” said Pentagon Press Secretary George Little on Nov. 30. He added, “We’re pleased that we’ve reached an agreement.” During Lot 5, Lockheed Martin is expected to manufacture 32 F-35s: 22 Air Force F-35As, three Marine Corps F-35Bs, and seven Navy F-35Cs. Little said unit-cost data would be made available once the Lot 5 contracts are finalized and signed. Reuters reported that Pentagon and company officials expect to sign them before year’s end. Each Lot 5 airplane is expected to cost less than one-half as much as a jet built in Lot 1, according to the news service. “Production costs are decreasing and I appreciate everyone’s commitment to this important negotiation process,” said Vice Adm. Dave Venlet, F-35 program executive officer. Lot 5 production actually commenced in December 2011 under an undefinitized contract action that enabled Lockheed Martin to begin work before the parties came to a final agreement on contract terms. (AFPS report by Claudette Roulo) (See also second Reuters report.)
Air Force Gen. Alexus G. Grynkewich assumed command of U.S. European Command on July 1, taking over the key assignment as the U.S. and its allies contend with a resurgent Russia and a grinding war in Ukraine.